Nowadays, Bitcoin has been one of the most significant talks of the town, or should I say the whole world. With its massive value of $20,000 capped a late-last year that toppled and exceeded its major competitors such as Ethereum, Ripple, and Bitcoin, it’s not that surprising why Bitcoin has gained so much attention, especially those who are investing in the digital market. But what is the essence of this infamous cryptocurrency? What is the significance of Bitcoin?
Bitcoin, what is it?
Invented in 2009, by a person called Satoshi Nakamoto whose aim was to create a new electronic cash system that does not require server or central authority, as well as having it decentralized; Bitcoin has been given different speculations from investors and analysts.
With its low-cost and fast transactions, investors became curious with the cryptocurrency, along with the fact that Bitcoin is irreversible which eliminates the undermining expense of charge-backs, the significance of Bitcoin towards investors and analysts have increased within the preceding years.
Bitcoin and its competitors are commonly referred to as cryptocurrencies, or digital currencies as some investors call it. Bitcoin is gained explicitly with the use of computers, with the help of the world’s fast progressing technology, along with the continuous supply of top-notched computer parts, and ultra-fast internet connection, cryptocurrencies are now gradually becoming one of the quickest and most reliable investments of traders in the global market.
It’s valued against its competitors
However, unlike fiat currencies such as the greenback (U.S. dollar), the Japanese yen, Euro and other common currencies being traded in the financial market which holds unlimited supply, Bitcoin and other cryptocurrencies have a tighter amount that is controlled by the underlying algorithm. To be more precise, small numbers of new Bitcoins rise every hour and will continue to surge slowly until the target of 21 million has been reached.
This attracts a large number of investors, along with claims that if the supply and demand of Bitcoin remain the same the possibility of the cryptocurrency gaining a significant value is possible. In November of 2017, the amount of Bitcoin surged rapidly, with a total cost of $20,000 it has exceeded its major cryptocurrency rivals.
Moreover, the value of Bitcoin has plunged into a massive 70% from its previous $20,000 level due to regulations being imposed by central banks to secure its investors and retail traders in the market from fraud and other illegal transactions using cryptocurrencies. Bitcoin has still maintained its peak against its peers, trading at over $9,000 which is considered as a fast recovery for the cryptocurrency in only four months, reclaiming over 25% of gains from their 70% losses.
How can bitcoin become a good investment?
The reason why investors are gradually turning their heads towards this infamous cryptocurrency is that of its unstable yet steady stance in the rally against its competitors. Bitcoin did not get its name as the best cryptocurrency against its rivals if it did not stand up to its name after simultaneous ups and downs. Unlike its competitors who kept steady but never had the chance to rise on the competition.
The versatility of Bitcoin can be compared to other regular currencies, such as the dollar, the yen or even the pound. They all have the different value, but still, investors and foreign exchange traders still bet on them, in exchange for a higher and fruitful profit t the end of the day.
Bitcoin can be used as a legal tender in repaying debts, and it can also be sold at its current value or store it and wait until its value rises to a more suitable equivalent before you sell it. Bitcoin has been one of the most choices of every investor who wants to hold a legal tender that has a higher value, and because Bitcoin is relatively valued in U.S. dollar, investors can expect a higher profit,
As of now, Bitcoin is being observed by specialists and is getting positive results due to its strong rally. Even though the value of the cryptocurrency has slipped down from its highest amount of $20,000 capped late last year, specialists are still confident that the value of the cryptocurrency will not hover below its competitors and will inevitably rise back to its prime.
How to invest in Bitcoin?
Investing in Bitcoin is a tricky yet rewarding investment, some investors tend to dig their Bitcoins with the use of powerful personal computers which are turned on twenty-four-seven. Digging a bitcoin usually takes a long time, with success rate of over 1 out of 300. Mining your bitcoin with the expectation of acquiring one, in the long run, might take a most of an individual’s patience.
However, for those who want to invest in Bitcoin without the hassle of building an advanced and powerful personal computer and acquiring high-speed internet connection; some legal and regulated brokerage firms offer assistance in funding for the cryptocurrency. You have to choose meticulously and carefully, to prevent yourself from getting scammed.
Their brokerage firms can be found on the internet; individuals should at least be knowledgeable with these kinds of stuff, particularly financial information as well as bitcoin to prevent themselves from experiencing fraud as well as getting scammed.
Investing is a risky decision; you can either gain or lose. However, sufficient information regarding the thing you are spending it can help you be more informed and ready for different options and investment choices, you need to be open about this information or at least consult an expert for legal and financial advisers.
One can never really tell whether the thing they are investing in would soon lead to massive profit. However, some investments do not offer huge gains but are steady stance and rallies smoothly in the market. Take currencies, for example, they change their values, but investors always invest in them, which then leads to the popularity of cryptocurrencies in which Bitcoin belongs to.