From my perspective, I think that there is a lot of complexity to purchasing and investing in Bitcoin.
I have a Computer Science degree and graduated from an Ivy League school, but I’ve been trying to understand how to invest in Bitcoin and I struggle with the complexity.
For example, below is says that AZTECO will make buying Bitcoin very simple. But when I went to the website it indicates to “redeem your Bitcoin voucher, enter your Bitcoin address.”
I’m not clear on what a Bitcoin address is, where to get a Bitcoin address, and how to make the Bitcoin address secure.
I’ve read comments that Bitcoin exchanges are not a reliable place to store Bitcoins and have seen comments complaining that accounts have been closed for reasons unknown to the account holder.
If Bitcoins are not stored on the exchange then there is the wallet option. There are a number of wallets on the cloud that are advertised, but how does an investor select the best wallet from the many to chose from?
And only yesterday there was a story of a hacker stealing $7 million of ETH currency from online wallets that has a vulnerability.
There are wallets for a desktop that have the same issues.
And there is also the external hardware wallets option. But which hardware wallet is best?
For buying Bitcoin, there are many exchanges. How does an investor select the best one?
It’s possible to purchase Bitcoin on Coinbase and Coinbase has started also started GDAX, another option to purchase Bitcoin.
GDAX claims to be insured for assets stored in online storage, but doesn’t mention offline storage where the majority of assets are stored.
Gemini is a Bitcoin exchange where you can trade Bitcoins and also enter into auctions. Which is better for an investor. Gemini is registered in NYS as a fiduciary. It seems that is important is that when selecting an exchange?
Then there’s Grayscale, a Bitcoin Investment Trust shares. It can be purchased similar to a stock or ETF.
The security of the Bitcoins is another problem. I’ve read of persons misplacing their personal security keys and losing millions of dollars worth of Bitcoins, that doesn’t happen when a person forgets their bank account number.
So I find it confusing on which is the best way to invest in Bitcoin, where to get the best price when purchasing Bitcoin, what security measures to take when storing Bitcoin, and how to transact business with Bitcoin.
I think people who have been involved with Bitcoin might see all the above issues as elementary. But for someone with no background in blockchain technology, which didn’t exist when I received my CS degree, and no background in Bitcoin, the solutions to the above issues are not obvious.
From my readings, I think that the blockchain community underestimates the difficulty a new comer to the field encounters.