Is It Worth Investing in Bitcoin?
Many people outside of the cryptocurrency space almost always think about Bitcoin, whenever they hear the word cryptocurrency. According to the crypto enthusiasts across the world, Bitcoin has been covering nearly every news channel, and influencers and bloggers have written a lot of materials concerning Bitcoins.
Bitcoin grabs every trader’s attention as a marketing dominance, and the coin is going to affect how people think about its underlying technology Blockchain. This new technology has provided Bitcoin with new adoptions every day. The technology holds all the innovation as a decentralized ledger, and whenever the world thinks about cryptocurrency, they think about Bitcoin.
In the cryptocurrency market, Bitcoin has a historically volatile value because of the speculations in the market. Still, the world’s oldest cryptocurrency Bitcoin is devaluating the fiat currencies massively in the world economy.
The Origin of Bitcoin
Over the past decade, the incredible rise of the world’s foremost cryptocurrency Bitcoin has become the biggest story of the world economy. Primarily, these virtual currencies were designed to develop peer-to-peer digital transactions; such transactions don’t require an intermediary such as banks or other financial institutions and networks.
To facilitate a transaction, such currencies only need the private key of the receiver and the sender. No exchanges of personal information or transaction fees were required. People could exchange their digital assets while being anonymous to the other person.
A group of novice traders is probably still confused about how the emerging cryptocurrency works, and how it got to the position in the world economy where it is standing today. To get them out of their confusion, the cryptocurrency was created by a mysterious developer pseudo named Satoshi Nakamoto in 2009.
The backbone of Bitcoin, which is responsible for Bitcoin’s success, is the underlying technology Blockchain. The ledger technology Blockchain records Bitcoin transactions on its network of nodes (high-powered computers). The ledger is publicly distributed so that every participant within the network can track every transaction.
Blockchain records every single Bitcoin transaction that has ever been made on a block. When the memory of a single block becomes full, it has been added to the chain of transaction blocks in sequential order. This ledger technology also validates Bitcoin transactions and relays those transactions to the other nodes.
Should You Buy Bitcoin Right Now?
At the time of writing, Bitcoin is trending with 7,568.96 USD per coin. The only rule for making profits while trading is to buy low and sell high. For these reasons, crypto traders around the world need to wait for the Bitcoin price to go low for buying some coins. The price of the coin fluctuates depending on factors such as Bitcoin halving, comments by the crypto influencers on social media, and other socio-political events.
Bitcoin’s price in the market will fluctuate until it achieves its primary use cases as a store of value and means of payment. The upcoming Bitcoin halving can undoubtedly help to drive the cryptocurrency’s price higher shortly. Halving will cut Bitcoin’s mining rewards to half and also reduce the speed of new Bitcoin creation.
But prices might also fall after the halving event, so you need to do your research before stepping into your first Bitcoin investment. There are plenty of risks in the crypto market that you need to consider if you choose to buy some coins.
Grow Your Bitcoins through Investing
Bitcoin is growing as the most popular investment asset these days. Even if it sounds scary, every investor is investing some part of his wealth is securely stored Bitcoins over the past couple of years. Several business giants have taken Bitcoin into the financial mainstream as a mode of payment.
One of the most basic forms of investing in Bitcoin is purchasing some and holding them for the long run until the price surges enough to make a quick profit. As the coin has a highly volatile nature, the early investors who pursued the aforementioned strategy have produced some incredible gains.
If a particular trader had invested just $100 into Bitcoin during the early days when it was worth $1, his investment would probably have been worth more than $9.5 million at this time. With this extreme example, traders might get a simple demonstration of how profitable the coin can be for long-term investors.
Bitcoin's Growing Acceptance and Present-Day Resilience
Despite all the legal activities, the coins rise as the most revolutionary currency is beyond comparison in the world economic history. Though Bitcoin is not distributed as a monetary unit by any country across the globe, its price skyrocketed in the cryptocurrency market.
Without containing any perceptible or core value, Bitcoin has been used increasingly by individuals as well as commercial services all across the world as a medium of payment. The coin has been tied up with several payment gateways that enable the coin’s acceptance in mainstream businesses.
Today people can use Bitcoins for purchasing a surprising number of goods and services such as gold, coffee, real estate, etc. from some of the world’s leading business giants. The major companies that accept Bitcoins as a mode of payment are Wikipedia, Microsoft, Burger King, KFC, Starbucks, etc.
You would probably have learned that you need to understand how to invest in Bitcoins before you start investing. You need to analyze the benefits and the risks of trading Bitcoins and see what method would suit your requirements for investing in Bitcoins.
As mentioned above, you need to wait for the correct time to start your investment. You can educate yourself through various courses available online about how and why you should invest in Bitcoins.
Only after you feel that you’ve acquired enough knowledge about the coin and the trading process, and then you should try your luck with trading this world’s first and the most dominating cryptocurrency in the coin market. But, when you start your crypto journey, you should start with a small amount and learn the trading strategies as you go deeper into the market.