Bitcoin Investing
Bitcoin is one of the best-known currencies invented by mankind. For those of you who do not know much about what it is, let me explain it to you. It is a digital currency which has been created electronically. It is not controlled by anyone. It is not in printed form like euros and dollars.
Bitcoin is used to purchase things electronically. That way it is similar to paper currencies which are also used for purchasing and are traded digitally. What distinguishes it from the conventional money is the fact that it is decentralized; no institution controls its network single-handedly.
Satoshi Nakamoto, a software developer, proposed Bitcoin as an electronic system of payment based on “mathematical proof.” It is digitally created by a group of people that can be joined by anyone. That does not mean that it can be churned out without any limit. The Bitcoin protocol limits the creation of Bitcoin to a total of 21 million that can be broken down into smaller parts.
Investing in Bitcoin is seen as a smart move for the long term investment.
Firstly, the value of the Bitcoin is equivalent in strength when compared to the trust the community (of Bitcoin) places onto it. This means it does not hold on real values such as land, silver and gold but holds on the intrinsic value. The latter will have value forever. Huge corporations are adopting the Bitcoins at a staggering rate. Some of them include Amazon, Subway, Tesla Motors, Victoria’s Secret, and Kmart and so on. However, the whole world still needs to understand how it works and how they can use it. Only then, the value of Bitcoin can be understood in the right context.
Whether one wants to invest in Bitcoin is completely his/her own decision. But let us discuss some of the factors which make investing in Bitcoin favorable.
Bitcoins had gone through several problems like Silk Road Scandal, Mt. Gox collapsing (biggest exchange of Bitcoin) and others. However, various large companies continue to choose this method of payment over others. This reflects a better future for the coin.
Bitcoins are available in a limited quantity. Unlike this coin, paper money can be reproduced which deflates the real value of the tangible currencies. When all the Bitcoins will be released, it will increase the value of the coin due to the mechanism of demand and supply.
These electronic coins are used as a payment mode by PayPal, Payza etc. This payment option eliminates the transaction fees required (typically included in banks) for transferring a large amount of money. Bitcoins help any 2 parties to do business without the limitation of borders and transaction fees.
Bitcoin is much younger than PayPal in terms of its date of establishment. However, it is processing much more transactions than PayPal.
There are many ways of investing in Bitcoin. One can purchase and sell the coin, control its price value etc. A huge number of currency traders are using Bitcoin Bots to automatically manage their trades. One can also try “mining” Bitcoins and developing them.
With rapid advancement in technology, Bitcoin as an innovative invention is surely going endure in the market.