Wondering if you must invest in Bitcoin? Suppose you are around any type of the financial news lately, then without any doubt you must have heard about meteoric rise in world’s well-known cryptocurrency. Suppose you are like many people, you are probably thinking, “Bitcoin trading – yes or no?”
Is bitcoin a good option to invest? What is Bitcoin anyway?
Well here some things that you must know about the Bitcoin before you think of investing. Also note the article is only for the information purposes and must not be used as any type of the financial advice.
Bitcoin is called as cryptocurrency or digital currency. It is basically one kind of online money. Just like any currency one can exchange this for other currencies and it fluctuates with other currencies too. So, it is important to keep your bitcoin safe in your bitcoin wallet.
Unlike other currencies it’s decentralized, it means there is not one central bank, government or country that is in charge of this currency. And it means bitcoin is not susceptible to the government and central bank mismanagement.
Benefits of Bitcoin
Simple to Send Money Across
Because it is decentralized, this means you can send Bitcoin (money) to your friend within seconds and without going through the bank intermediary (or pay banking fees). This fact makes Bitcoin quite popular. In place of waiting for the wire transfer that will take several days, one can send the payment within seconds/minutes.
There’re just 21 million Bitcoins, which can be mined. It limits an amount of Bitcoin to be very produced. It is like saying the government can’t print money as there is the limited supply of the bills – and will not print anymore. Whenever there is the set supply your buying power gets preserved & currency stays immune to the runaway inflation.
The limited supply has helped in contributing the rise in price of the Bitcoin. People do not want the currency that will be printed – and inflated – in infinity at a whim of the greedy government.
Many people think Bitcoin is totally anonymous. But it is not anonymous – it is private. Bitcoin transactions made are seen on a Blockchain – public Bitcoin ledger. However, your name & identifying details behind your transaction aren’t seen. Every transaction gets linked to the address – string of text & characters. Thus, when people may see your address – but there is not any way to link this address to you.