If you are wondering what Bitcoin is and if you have to invest in it, then this article is for you. In 2010, the value of one bitcoin was only 5 cents. Fast forward in 2017 and the value touched $ 20,000. Again, the price fell to $ 8,000 in the next 24 hours, causing a big loss to holders of currencies.
If you have tried to find out more about Bitcoin, read this can help you. According to statistics, around 24% of Americans know what it is. However, currencies still have a value of more than $ 152 billion. It is one of the most common reasons behind this popularity. Let’s know what it is and whether you have to invest in it.
What is Bitcoin?
Simply put, Bitcoin is one of the digital currencies. Digital currency is known as Cryptocurrency. This term was discovered by anonymous people in the financial crisis in 2008.
Digital currency account is like your current account account that you can see online. In other words, it is a digital currency that can be seen but cannot be touched. In terms of Bitcoin, you also don’t have a physical representation. All money is only in digital form. Nothing is there to regulate this type of currency. In the same way, networks are not managed by any entity and the tokens are exchanged between individuals through complex software systems. Instead, everything is decentralized, and run by a computer network.
It is important to note that you cannot use this token to pay for all you want to buy. In fact, you can use it to buy only a few sellers or online stores. But can be sold for traditional currencies or money. However, more and more companies began receiving other Bitcoin and Cryptocurrency. For example, Expedia and over-Stock receive it from users. One of the main features of this type of money is that the transaction is fully private and cannot be traced. That’s one of the many reasons, most people prefer this digital money.
Should you put money in Bitcoin?
Remember: Before you choose to invest in Bitcoin or other digital currencies, make sure you understand the risks associated with this system. Volatility is one of the main risks. This means that the value of your money can fluctuate significantly in 24 hours. In fact, the increase or decrease in value can be as much as 30%. Another problem is that most digital currencies that can be seen today will lose value in 5 years, according to most experts.
To be on a safe side, we suggest you invest only that you can lose. For example, if you have $ 1,000, you can invest $ 10. And if you lose that number, it won’t create financial problems for you.
Hopefully, now, you know what Bitcoin is and whether you have to invest the money obtained with difficulty. Remember: You can’t invest a lot of money or you might experience serious financial problems on the road.