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Creating Your Own Successful Bitcoin Business-Part 7

Invest In Bitcoin And Other Types Of Crypto Currency And Crypto Coins By Joining The BitClub Network

· Bitcoin,BitClub Network,Crypto Currency,Crypto Coins,Cryptocurrency

If you want to purchase Bitcoin as an investment and you want to join the BitClub Network Company, so that BitClub can mine Bitcoin and other Crypto Currency on your behalf to grow a stable and increasing investment for you, please Join BitClub Here For Free. Once you join, you will be set up with a free lead account and receive follow up emails detailing how you can create a Bitcoin investment account with The BitClub Network. For any answers to questions Contact Clyde Thorburn Here.

Invest in Bitcoin and other types of Crypto Currency and Crypto Coins by joining the BitClub Network.

Author : My Dirty Little Bitcoin Secrets PDF EBook by Ofir Beigel
 

Chapter 2.2: Bitcoin B2C market opportunities. Bitcoin Exchanges. Probably the most common Bitcoin B2C market opportunity is to open up a Bitcoin exchange. When I say exchange I mean either an actual trading platform where people can trade Bitcoins with one another, or a broker (e.g. Coinbase) which is kind of a Bitcoin shop that lets you buy Bitcoins from it. Examples for some of the more known Bitcoin trading platforms are Kraken, Bitstamp and BTC-E. Trading platforms make their profit by charging a commission for each transaction that is made. They are usually the cheapest place where you can by Bitcoins, since the Bitcoin price is determined by the market. Examples for some of the more popular Bitcoin brokers are Coinbase and Circle. Brokers make their profit by selling you Bitcoins at a premium. The advantage of opening up a Bitcoin exchange is pretty clear - you’re really “close to the money” and the business model has been tried and tested many times. All you need to do is get enough people onboard and you’re good to go. In my opinion opening up an exchange nowadays has more disadvantages than actual advantages. First, you’re going to face fierce competition. Just to give you some reference Coinbase is considered to be the 5000th largest website on the web today6. It is estimated at 5M monthly visitors7 and has already secured $106 million in venture capital funds8. 6 http://www.alexa.com/siteinfo/coinbase.com#trafficstats 7 http://www.similarweb.com/website/coinbase.com 8 http://www.coindesk.com/coinbases-75-million-series-c/.
 

So as you can see the Bitcoin exchange market has some tough competition. Here’s a list of all of the available Bitcoin exchanges today. Bitcoin Wallets. Up next are Bitcoin wallets. Bitcoin wallets are also a great idea for a Bitcoin business. It means that you get to create the software/web app that will hold Bitcoins for its owner. There are many kinds of Bitcoin wallets - mobile apps, desktop apps, software wallets and web wallets. The more well-known Bitcoin wallets are Blockchain.info, Coinbase (again…), TREZOR and GreenAddress. You can find a complete list of the wallets available here. Most Bitcoin wallets don’t have a clear business model. Coinbase’s wallet, for example, makes it easier for people to buy Bitcoins directly from Coinbase. Blockchain.info makes their revenue from advertisements on their site, but as far as I could tell I couldn’t find a solid business model for almost any other wallet out there aside from these two. Some Bitcoin wallet providers sell additional hardware thus creating an income stream. For example, MyCelium has their own products which they sell on their website. A different approach to generating revenue from Bitcoin wallets is to create what is known as a hardware wallet. TREZOR and Ledger are two companies which manufacture a Bitcoin hardware wallet. It’s a physical device on which you can store your private keys and sign transactions for you (more on transaction signing here). It’s one of the safest ways available today to store your Bitcoins.
 

Another form of wallets available are physical “dumb” Bitcoin wallets such as Bitkee and Cryptosteel. The advantages to creating a Bitcoin wallet business would be the fact that once again you are close to your customers' funds. Also if your product is really good then people tend to pay more for greater security. Meaning the Bitcoin wallet product touches a lot of sensitive pain points for your customers. The disadvantages are that the competition is even fiercer than the exchanges, because there’s not that much room for differentiation. Another disadvantage is that you have to have extensive knowledge in Cryptography in order to create a good product. Bitcoin Mining Companies. When we come to talk about Bitcoin mining as a business there are three options we can discuss. Mining Bitcoins for a profit. This will include getting some state of the art mining rigs, a dedicated place to host those rigs, cooling systems (since they tend to overheat), etc. If you’re thinking of making money through Bitcoin mining it can be done only if you consider this to be a full time business which will include a hefty investment for the equipment. Home mining as it is referred to is almost never profitable at today’s difficulty rates. 9. http://99bitcoins.com/bitcoin-mining-profitable-beginners-explanation/. Creating and selling mining rigs Another option would be to become a mining rig manufacturer. These companies create and sometimes also operate mining rigs for other individuals or companies who wish to buy them.
 

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