What is Bitcoin and how to buy it in New Zealand

This article will cover the following:

-What is Bitcoin?

-Why do people buy Bitcoin?

-Is it too late to buy Bitcoin?

-How to buy Bitcoin safely and easily in NZ?

bitcoin coin with stacked up coins behind it

What is Bitcoin?

Bitcoin is a digital currency. In many ways, it operates just like any other currency. You can use it to buy goods and services, and you can use it to store value, just like you would money in your bank account.

Unlike government-issued cash like the New Zealand Dollar, Bitcoin is not stored in a bank, but rather an account called a Bitcoin wallet. Bitcoin is not owned by one central organisation or government, but rather by its users. Since Bitcoin’s birth in 2008, 2116 other cryptocurrencies have spawned, all with the goal of revolutionising payments by massively upgrading the speeds, freedoms, and efficiency of transferring and storing value.

Why do people buy Bitcoin?

Like gold, Bitcoin is scarce; its supply is limited. There are currently just over 16.2m Bitcoin in circulation, and the maximum that will ever exist is capped at 21 million. This set cap is well known, making its scarcity transparent.

As demand for Bitcoin increases with more people using it as a currency or investment vessel, the price will follow and continue to rise since there’s is a fixed supply of the currency in existence.

Bitcoin price history from jan 2016 to june 2019

A great example of how Bitcoin’s price is determined by demand was when mainstream media began to greatly cover Bitcoin at the end of 2017, drawing the term ‘Bitcoin’ and ‘cryptocurrency’ into the public spotlight and setting them in stone as household names.

Due to immense media coverage and general adoption, Bitcoin’s price increased by 1200% between 2017 and 2018, and was then followed a year of market recovery.

Blockchain.com wallet users over the same period

Blockchain wallets user graph
Regardless of Bitcoins infamous price fluctuations, the number of people buying Bitcoin and setting up their own wallets has continued to consistently increase – as demonstrated in the graph above of Blockchain wallet users over the past year.

Bitcoin’s value is not purely based on its ability to immensely fluctuate,  but primarily by how unique it is as a currency. So what makes Bitcoin special?

Stack of bitcoins on top of American bank notes

What makes Bitcoin different from the money we already have?

  • Bitcoin is fast, and it currently takes an average of 30 minutes for a transaction to settle. This is a huge difference in comparison to the average of 3 days it takes to send money to another country via traditional methods. Other cryptocurrencies can be sent across the globe in less than a second.
  • Sending Bitcoin is cheap, as it only has to pass through its own system rather than all the third parties that your bank typically sends your international payments through (3 on average per transaction).
  • Since there is no organisation in the middle of the Bitcoin network authenticating transactions as a bank would, there is no way that the system can be shut down, nor can anyone meddle or restrict your ability to make transactions.
  • Bitcoin is anonymous, as its user’s wallet by default is not tethered to their real-world identities.
  • Anyone can easily create a Bitcoin wallet without having to ask anyone for permission – which is a big deal for the 1.7 billion adults in the world who currently don’t have their own bank accounts
  • Due to Bitcoin’s attribute of not needing a central body or organisation to function, Bitcoin has achieved the title of being the first true digital universal currency.

Bitcoin vs fiat

Bitcoin clearly holds multiple revolutionary qualities, such as its ability to be used to send anonymous irreversible transactions to anywhere in the world with just a cellphone and internet connection, or its ability to used as a self-sovereign banking system without central oversight or restriction.

Bitcoin and the other growing list of 2,000 plus cryptocurrencies are going to change the world for the better, but the real question right now is: Is it too late to get in early?

one hand holding a bitcoin and another hand holding a bitcoin

Is it too late to buy Bitcoin?

Absolutely not. Bitcoin and cryptocurrencies are currently about as widely adopted as the internet was in 1994, and less than 1% of the world owns any crypto for themselves.

Unless the fiat currency and the banking industry can offer stronger advantages of there own, it appears to be inevitable that a decentralised universal digital payment system is going to dominate the way we transfer value between each other in the future.

evolution of money info graphic

Like how the internet has profoundly shaped the world since the first website was published in 1991, Bitcoin and cryptocurrency are on its way to making their own incomprehensible impacts on the world of finance and banking.

The graph below is an excellent example of how early we are are in the days of cryptocurrency:

is it still early enough to invest in bitcoin

Cryptocurrency in its current state could be compared to where we were in 1961 with space travel, or where we were with artificial intelligence in 1955.

In comparison to the various other asset classes and debt, Bitcoin and cryptocurrency clearly have a lot of a room for growth – especially if it can garner mainstream adoption from its use as an instant international payment instrument.

Asset classes vs bitcoin infographic

Bitcoin’s global adoption will not primarily be led by its ability to make instant cross border payments through, but rather by something much more powerful.

Bitcoin wallets can be created for free by anyone who has an internet connection and a computer, and there are currently 1.7 billion people on Earth who don’t even have their own bank account.

Isaac Mkalia, 20 years old, a teacher by profession is checking his mobile phone.

Bitcoin wallets can be created and used on the most basic smartphones, and the number of global smartphone owners is rapidly growing. This in combination with efforts from the likes of Elon Musk and Mark Zuckerburg to provide the entire planet with cheap reliable highspeed internet, the groundworks for providing this huge number of people with their own digital banks are already in the works.

Out of these 1.7 billion people, 1.1 billion of them don’t even have any legal ID – so they couldn’t create a bank account at this time, even if they wanted to. No longer does this invisible population have to sit on the sidelines and play the roles as spectators, but rather directly contribute to global trade and international online commerce.

Venezuelan cash stacks next to a USD bank note

There are also over 123 million people living in countries in South America that have extremely volatile currencies, such as Venezuela and Argentina. This incomprehensible number of people living under such unpredictable conditions will also benefit from using Bitcoin – or any currency that is not being heavily manipulated by their own government.

Now that we have covered what Bitcoin is, why it has value, is it too late to buy some and how it will improve the world, you may be wondering how to join the action and buy some for yourself.

Firstly, you’re going to need a Bitcoin wallet, and you can see our 3 steps guide on how to get one for yourself by clicking here.

Easy Crypto homepage GIF

Where to buy and sell Bitcoin in New Zealand?

Easy Crypto is NZ’s best crypto retailer, with the simple mission of making crypto as safe, fast as possible – and it seems we are doing a very good job of this already.

We achieve these speeds and ease by being the only crypto broker in NZ with a fully automatic verification system, meaning you can sign up and be verified to trade within 2 minutes.  We list over 57+ cryptos, ranging from Bitcoin to Ethereum, and everything in between.

How to buy Bitcoin through Easy Crypto?

In order to start trading crypto with us, you must first create an account and get verified. We have a fully electronic verification system, so don’t expect this process to take longer than 5 minutes. Your first step would be to head over to the main Easy Crypto website, which can be found by clicking here.

If you are struggling to get through our verification system, either click here for a full walkthrough or click ‘Help‘ on our website for further human assistance. Now that you are signed up and verified, you will now be able to start buying and selling any of our 47+ listed coins. A walkthrough on how to do this is as follows.

Walk through for main page of easycrypto
Now that you have chosen whether you want to buy or sell and how much you are wanting to transact, you can progress to the next page by clicking ‘BUY NOW‘.

Your order with instruction guide easy crypto screenshot

In the second page of the order (as shown above), you can insert your public address and memo tag if your transaction requires one. To learn more about our Easy Crypto Wallet feature, you can find more information here. If you do not already have a wallet and do not wish to use ours for whatever reason, we recommend using Exodus, a cold software multi-currency wallet.

You can download the Exodus wallet by clicking here.

If you would like to learn more about crypto wallets and how to safely store your crypto, click here.

Easy Crypto select payment method for order screenshot

After you have inserted your public address and your memo tag if it is required (only required for some coins but not Bitcoin), You will now move onto our payment page. You have two options with your payment method, manual bank transfer or Poli Pay

Poli is an instant payment processor in which you input what bank you’re with, your account number and your account password, and then the Poli system will do the rest of the work. Poli is trusted by thousands of Kiwis and Australian businesses and you can learn more about it here.

We do not store your any of these details but you can choose to let your browser remember your account and password if you wish to streamline your next transaction with us.

Screenshot of complete order and pay with poli

Now that you have clarified that you have inputted the correct wallet address, you are ready to finalise the order and either through Poli or manual bank transfer. Once the money is received on our end, our system will automatically send the crypto from our wallet to yours, and this should take no longer than 3 minutes.

If you have any hiccups along the way or simply would like someone to assist you with your transaction, don’t be shy and flick us an email here. We look forward to being your go-to crypto retailer and we wish you good luck with your investments in digital assets!

To start buying and selling crypto at the best rate in NZ, click here.