Bitcoin is an online digital currency, just like a dollar or a pound, but with a few exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin participates in a peer-to-peer payment system where no intermediaries exist and goods can be securely transferred between two people on the planet. It is associated with a strong computer network and the currency unit of the Bitcoin system (aptly called Bitcoin) can be acquired simply by joining the large network. Bitcoin provides a fast and secure alternative to transactions, but few are willing to make the leap. So the million dollar question still persists, is Bitcoin a safe investment?
Bitcoin is only a few years old, an interesting creation that has impressed many and that, because of its history, has achieved a name on the most important financial lists. Its popularity has spread and has led some major businesses like Virgin Galactic to consider it as an acceptable source of payment. Bitcoin prices are rising at rates of up to 10% and continue to dominate as the alpha of the market and this has made many interested in investing in it.
Another special feature of Bitcoin is that it has no central bank and no central government controls it. It is a world currency and its creation and existence are hidden behind a complex and geeky mathematical algorithm that allows it to overshadow government-related setbacks. Cases of political instability and government absurdities that embarrass the economy and take years of investing in a coin in the pit do not occur in the cryptocurrency system. This creates a safe and friendly investment opportunity with low inflation risks.
With an always amazing advantage, cryptocurrency also has its advantages. As mentioned, this thing is still making strides for the baby; and with this great uncertainties arise. Bitcoin prices are volatile; it currently increases sharply and can range from 30% to 40% in a month. The world is still amazed by its appearance and there are very few holders of Bitcoin and Bitcoin. This leads to unanswered questions and a cold fear among people, as investing in a new unpredictable gold mine can produce devastating effects. Its novelty causes a lack of regulations and scares potential investors.
The enigma surrounding the Bitcoin system is an important factor to consider. Anything can happen and everyone involved in the Bitcoin market is on high alert. China, in December 2013, eliminated the use of Bitcoin and this caused a drastic drop in its value from $ 1240 to $ 576 in just three weeks. Programmers also determine the functionality of this world currency and many question the idea of risking their finances for some groups of geeks. This prevents many from venturing into the system and increases the investment risk of Bitcoin.