If you are wondering what bitcoin is and if you need to invest, this article is for you. In 2010, the value of a Bitcoin was only 5 cents. Fast forward in 2017 and its value has affected $ 20,000. Once again, the price dropped to $ 8,000 in the next 24 hours, resulting in a huge loss for currency holders.
If you are trying to know more about Bitcoin, this reading can help you. According to statistics, about 24% of Americans know what this thing is. However, the currency is still worth more than $ 152 billion. This is one of the most common reasons for the popularity of this thing. Do what it is and if you should invest in that.
What is Bitcoin?
In simple terms, Bitcoin is one of the digital currencies. A digital currency is called cryptocurrence. The term was invented by an anonymous person from the financial crisis in 2008.
An numerical currency account is an account as your current account that you can view online. In other words, it is a digital currency that can be visualized but can not be affected. In case of Bitcoin, you have no physical representation either. All money exists on digital form only. Nobody is there to regulate this type of currency. In the same way, the network is not managed by an entity and tokens are exchanged between people via a complex software system. Instead, everything is decentralized and is managed by a network of computers.
It is important to note that you can not use these tokens to pay everything you want to buy. In fact, you can use it to buy only sellers or online stores. But this can be sold for a traditional currency or money. However, more and more companies are beginning to accept Bitcoin and other cryptocurrences. For example, Expedia and Over-Stock accept users. One of the main features of this type of money is that the transaction is totally private and not found. This is one of the many reasons why most people prefer this digital form of money.
If you put money in Bitcoin?
Remember: Before choosing to invest in Bitcoin or any other digital currency, make sure you understand the risks associated with this system. Volatility is one of the major risks. This means that the value of your money can fluctuate significantly within 24 hours. In fact, the climb or the fall of the value can reach 30%. Another problem is that most of the digital currencies that can be seen today will lose their value within 5 years, according to most experts.
To be sure, we suggest you invest solely that you can afford to lose. For example, if you have $ 1,000, you can invest $ 10. And if you lose this amount, it will not create any financial problem for you.