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Cryptocurrency

Bitcoin Friendly Banks

In this article we discuss the Bitcoin friendly banks in today’s cryptocurrency market. In addition, we talk about cryptocurrency investment options, including recommendations on cryptocurrency projects you should be watching and explanations of some terminology in the cryptocurrency industry.

If you are thinking about investing in Bitcoin, there’s never been a better time. For example, Bitcoin has been increasing in value for more than 12 years and there are many other cryptocurrencies that may be worth looking at. In this article we will share some of the Bitcoin friendly banks as well as discuss cryptocurrency and blockchain.

Primarily, we will discuss the cryptocurrency Bitcoin. With an approximately $680 Billion market capitalization, Bitcoin is the oldest and most trusted cryptocurrency investment. In fact, many other cryptocurrencies are like Bitcoin. Moreover, understanding Bitcoin is fundamental to understanding cryptocurrencies and cryptocurrency investment.

However, prior to getting started talking about cryptocurrency investment and Bitcoin friendly banks we should understand some cryptocurrency terminology. For example, we’ll look at the terms “Bitcoin”, “cryptocurrency”, “block chain.”

Bitcoin Critical Banks

The cryptocurrency Bitcoin is a relative newcomer to the financial investment space. Since Bitcoin has only been around since 2009, it has taken a lot of criticism and flak from traditional Wall Street investors. However, many investors who doubted Bitcoin in the past are beginning to come around to the idea of electronic currency and virtual store of value that Bitcoin offers. As a result, demand has surged for Bitcoin in recent years.

bitcoin friendly banker

Traditionally, banks such as JP Morgan Chase have been hyper critical of cryptocurrency. Jaime Dimon, JP Morgan Chase’s front man, has lead the criticism of Bitcoin in recent years. Other financiers, such as Warren Buffet spewed the same vitriol toward Bitcoin. Buffet famously called Bitcoin “rat poison.”

“Cryptocurrencies basically have no value and they don’t produce anything. They don’t reproduce, they can’t mail you a check, they can’t do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person’s got the problem. In terms of value: zero.” – Warren Buffet on CNBC, February 2020

Bitcoin Buffet Rat Poison
Since Warren Buffet called cryptocurrency “rat poison,” Bitcoin price has sky rocketed!

Of course, when the “Oracle of Omaha” (Warren Buffet) made the disparaging remarks about crypto, Bitcoin was trading around $10,000. Apparently his comments only emboldened contrarian investors because Bitcoin has continually risen in price since then, going as high as $60,000 in the Spring of 2021. Bitcoin is currently trading around $36,000. So the question is, where can I find Bitcoin friendly banks?

Bitcoin Friendly Banks

Most of the bank heads and Wall Street big whigs have since backed off of their critical positions toward cryptocurrency. As a result, some US financial institutions are now becoming Bitcoin friendly banks. However, keep in mind that many banks are still unsure about Bitcoin and have not begun participating. In addition, some banks only offer Bitcoin investment to high-net-worth clients.

Some Bitcoin friendly banks offer options and future trading only. Some offer Bitcoin custody accounts. As a result, Bitcoin friendly banks are still limited in number. Here is a list of Bitcoin friendly banks:

  • UBS
  • HSBC
  • BNP Paribas
  • Deutsche Bank
  • Credit Suisse
  • Bank of America
  • Citigroup
  • Morgan Stanley
  • JP Morgan Chase
  • Goldman Sachs

More Ways to Buy Using Bitcoin Friendly Banks

As previously stated, the aforementioned traditional banks may not be an option for the average investors. However, for most investors in the United States, the easiest way to buy Bitcoin is using Coinbase. It has made things simple and easy to use for investors. In addition, Coinbase offers two sister websites: Coinbase and Coinbase Pro. Coinbase is for beginners and people who like to keep things simple. Furthermore, Coinbase Pro allows those with trading experience or a little more technical background to tweak their trades a little more. On the other hand, Coinbase, which is used by beginners, has fees that vary between 1.5% up to 3.99%, depending on your payment method.

coinbase crypto bankOne newer method that may actually be cheaper than Coinbase is Swan. What makes Swan different is that it simplifies buying bitcoin. You simply link your bank account, set up a weekly, prepaid plan to buy bitcoin each week and then enjoy 0.99% fees. The only drawback to Swan is that it is newer than coinbase and doesn’t have the history that Coinbase has. However, it seems like a promising way to buy on the cheap.

There are a number of cryptocurrency exchanges in the United States that allow you to buy Bitcoin and other cryptocurrencies by simply linking a bank account to your crypto account. And there is no special technical knowledge needed to open an account and buy Bitcoin. Other large American cryptocurrency exchanges include Kraken and Gemini.

What is Bitcoin (BTC)?

Bitcoin is a Peer-to-Peer Cryptocurrency Payment System Founded in 2009

Bitcoin is an open-source, block chain-based technology that was designed as a peer-to-peer payment system. It is designed to be a decentralized electronic payment method that can be conducted semi-anonymously among individuals. As well, Bitcoin is digital cash. The other intent of Bitcoin is to solve the double spend problem that had been encountered in the past with electronic currencies.

It uses block chain technology to maintain its function. First, for users to send and receive bitcoin, the block chain depends on miners. Second, miners use special computers to complete complex calculations which build blocks on the block chain. As a reward, miners are paid in Bitcoin upon completion of each block.

The world first learned about Bitcoin in 2009. It is unknown who invented bitcoin; however, a developer named Satoshi Nakamoto (probably a pseudonym) released a 9-page white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” As a result, the Bitcoin white paper describes Bitcoin’s purpose and how it works.

how to get 1 Bitcoin fastIt was the first cryptocurrency to experience widespread use and adoption. However, Bitcoin’s use case has evolved over the years from a peer-to-peer payment method to a store of value model. For instance, many Bitcoin users hold bitcoin much like you would hold silver or gold in an investment portfolio.

What is Cryptocurrency?

Cryptocurrency is a digital asset. Payments occur between individuals on the internet. In addition, the best cryptocurrency uses cryptography to secure transactions on a network. Block chain technology is part of what makes the network secure. Miners use powerful computers to solve advanced equations in order to earn Bitcoin or other cryptocurrencies. Finally, mining makes the distributed ledger network secure. In addition, it ensures that transactions are complete. As a result, no one can cheat the system.

What is Block Chain?

The block chain stores data on a public database. The blocks of information include transaction data, participant data and distinguishing data. Each block of data stores thousands of transactions under cryptographic lock and key. A network of computers operates the blockchain. They make the network run and keep it secure by solving algorithmic hashes. The network computers earn cryptocurrency for their work. The bitcoin block chain technology uses a distributed ledger. Bitcoin’s network security hinges on the distributed ledger that the network participates in.

What is the Best Cryptocurrency?

The best cryptocurrency is the most secure, has the strongest user base, has been operating the longest. In addition, it has the highest capitalized market. By this standard Bitcoin is the best cryptocurrency.

most expensive cryptocurrencyBitcoin Security

The Security of Bitcoin is Based Upon a Strong User Network

The security of the Bitcoin network has proven itself time and again. Over the 12-year history of Bitcoin there have been many challenges to the network that could have spelled failure. However, Bitcoin lives on. However, it’s important to note that many of the most infamous Bitcoin hacks have been of the exchanges that transact Bitcoin. As a result, experts have faulted the exchanges lack of security for the hacks and not the Bitcoin network itself.

Block chain networks like Bitcoin handle transactions of cryptocurrency on a distributed ledger. This means that the mining computers that run the network share information on the ledger and ultimately, must reach a consensus. As a result, the more computer users that operate on the network means the ledger becomes more distributed among users. This inherently creates security and decreases the chances of one hacker group to gain control of the network. This also ensures that Bitcoin is a solid cryptocurrency investment.

One other security factor is the price of Bitcoin. Bitcoin’s network was fragile and was new. From the start, Bitcoin had few users, low capitalization and a weaker network. However, currently Bitcoin price is approximately $30,000. Hacking the Bitcoin network today is nearly impossible. The network is impenetrable without $Billions in capital.

Community Support

Bitcoin has a long history of community support. It has a growing community and network of individuals who believe in the project and who contribute to Bitcoin’s success. The Bitcoin community includes people like crypto enthusiasts, coders, technology developers, Bitcoin users and block chain startups. Ideas are shared on Reddit and Telegram, two popular Bitcoin communities.

$1 Trillion Market Capitalization of Bitcoin

The total market capitalization of Bitcoin is around $1 Trillion dollars and growing. Bitcoin has always been the dominant cryptocurrency in the market and remains so. Moreover, its market dominance is approximately 60% against the other cryptocurrencies. Additionally, approximately $6 out of every $10 in the cryptocurrency market is used to purchase Bitcoin.

Bitcoin Continues to Grow

There are a couple of things to understand about Bitcoin growth. First, Bitcoin is growing in popularity and use worldwide. Users are adopting Bitcoin as a store of value like gold and using it as a payment method in places where banks don’t exist. Second, Bitcoin is growing in price.

When users began mining Bitcoin on laptops in 2009, it had little value. Yet, today one Bitcoin can be exchanged for $30,000! Around 2020, billions of Dollars of institutional money began to flow into cryptocurrency investment. People world-wide have been converting dollars to bitcoins for years.

Examples of Institutional Money Investments in Bitcoin (converting dollars to bitcoins):

Other Cryptocurrencies to Consider

Here are some other cryptocurrencies that are worth looking at more deeply. Although Bitcoin is the most dominant and most secure cryptocurrency, there are many other cryptocurrencies that have strong security and strong use case value. A cryptocurrency investment portfolio may include other cryptocurrencies.

ethereum cryptocurrencyEthereum (ETH)

A Block Chain Project That Uses Smart Contracts to Power Other Projects

Ethereum is an open-source, decentralized block chain project. Smart contracts are one thing for which Ethereum is known. It provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.

Ethereum uses a payment system for ETH (Ethereum token). In addition, it implements smart contracts and allowing whole new projects to run on top of the Ethereum block chain. For example, “CryptoKitties” was launched in November 2017. CryptoKitties was a decentralized application. It is a digital collecting and trading app of virtual felines that works on Ethereum.

Upside of Owning Cryptocurrency

Owning Cryptocurrencies Requires Belief That They Will Save a Failing System

Owning cryptocurrencies requires that you have a future vision that is radically different than our current banking system. In addition, cryptocurrency is inherently risky and volatile for investors. However, many believe that cryptocurrency investment is a vote for monetary freedom and independence from governments.

Bitcoin doesn’t require using a bank; the bitcoin holder is the bank. Making borderless payments between friends became easier and more private. In addition, Bitcoin is deflationary, with only 21 million Bitcoins available for use. And, if you are starting to have doubts about government money printing and overspending, then Bitcoin is an obvious candidate for safe haven status.

Bitcoin Exchanges and More Information

Hopefully this article has helped you understand cryptocurrency investment. Several exchanges buy and sell cryptocurrency. Binance, Gemini, Kraken, Coinbase and so many more. Moreover, please do your research if you decide to move forward with cryptocurrency investment. There are many scams in the crypto industry that are searching for an easy mark. Finally, if you want to learn more about Bitcoin and cryptocurrency, one place to start might be Investopedia.

Future Predictions

It seems clear that in 2021, Bitcoin will begin its next phase of expansion and adoption. As a result, Bitcoin’s price will likely go much, much higher.

Anthony Pompliano and Max Keiser, two well-known investors in the Bitcoin space believe that Bitcoin price will exceed $100,000 in the next few years. Investors like Mike Novogratz and Chamath Palihapitiya believe Bitcoin price will go higher. In fact, their predictions are $400,000 and $1,000,000, respectively. The investors mentioned are millionaires and billionaires. They clearly understand money and markets. As a result, their predictions are very serious.

Wrap Up of Bitcoin Friendly Banks

Hopefully this article has helped you better understand bitcoin, cryptocurrencies and the Bitcoin friendly banks. Although there are many ways to purchase bitcoin, the cheapest way to buy bitcoin is by getting it on Coinbase Pro. Coinbase is a trusted, secure source and is definitely the cheapest way to buy bitcoin. It’s also quite easy to buy Bitcoin.

Read More:

Cryptocurrency For Dummies

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The Fastest Growing Cryptocurrency

Best Cryptocurrency

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Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.