This sounds like a pretty silly subject, but it is not the same as saving dollars or some other “hard” currency. Why? Well, mostly because there are no Bitcoin paper bills or coins or hard stuff like gold or silver or platinum ingots. Bitcoin is a 100% electronic currency, and you can’t put that in your pocket or underneath your mattress or bury it in the back yard.
The way you save Bitcoin is electronically, in something generally called a “wallet” or “e-wallet”. There are various organisations that propose wallets for electronic currency, not just Bitcoin but also about 50 other electronic currencies. The function of the wallet is to hold the receipts for your e-money and keep track of what happens to them. Rather than talking about “Bitcoin and 50 other currencies”, I will shorten that to BTC to make it easier to read. You can transfer BTC into your wallet, and others can also pay into your wallet, for example to buy something from you or to pay for a service you performed for them. However, only YOU can transfer BTC out of your wallet (unless you do something stupid like giving your payment information to them). There is a very good reason for this: once BTC has left your wallet, it is gone. You have about 0.000% chance of ever getting it back.
Saving BTC is pretty obvious – you (or someone else) pays into your wallet and you don’t spend it or send it to someone else. The balance is what you have saved. Up to now, I don’t know of anyone who pays interest on BTC in your wallet (as in a savings account), and I doubt there will be, at least in the near future. A recognised and widely accepted provider for a Bitcoin wallet is Blockchain, located at https://www.blockchain.com/. This is their main business and they are located in Luxembourg.
The reason for savings systems are usually attached to a system that increases the value of the money you have saved by paying interest, or sometimes dividends, based on how much money – old plus new – you have saved during the period. This appears not to work with BTC. Why? Well, mostly because the value of the BTC is increasing much more rapidly than you could ever hope to achieve by recovering interest. For example, during the past 6 months, the value of Bitcoin has increased from US$ 950 per Bitcoin to US$ 2745 per Bitcoin. That is not far from tripling in value, and there is no way that someone will commit contractually to pay you 3 Bitcoin (your initial 1 investment plus 2 more because of inflation against the USD) for every 1 Bitcoin you invested 6 months earlier. For a really good deal, you might be able to make 10% annual interest on US$, this would give you about $1.05 for every $1.00 you put in for 6 months. See the Bitcoin advantage?
So, now you know about how and why to save BTC.
Craig Hesser for
Bitcoin Fortune Builder | http://bitcoinfortunebuilder.com/