Bitcoin is a virtual currency that has been a constant source of interest since it came onto the market in 2009. However, bitcoin is currently trending now more than ever. Its value has soared to a new high of over $4,000, so many people who bought bitcoin in its infancy are now millionaires. But what actually is bitcoin? What is it used for? Should you buy some? That’s what we are going to discuss in this article.
What is Bitcoin?
Bitcoin is a digital currency that has been around for over seven years. It uses a decentralized technology for storing money and secure payments that don’t require people’s names or bank account details. The aim of bitcoin was to liberate money in the same way that the internet liberated information.
What Affects the Price?
Unlike normal currencies, bitcoin is more stable and isn’t impacted by political announcements. That said, the price of bitcoin has jumped up and down since it first became popular in 2013. As regulators warm to bitcoin and it starts to be accepted as payment in more locations, the price of the currency tends to rise. However, bitcoin can also crash. One good example of when this happened was when the Mt Gox bitcoin exchange collapsed. With the price of bitcoin currently so high, many believe we are in a bitcoin bubble at the moment. It will be interesting to see whether the price of the currency remains high or is set for a large crash.
What is It Used For?
It is believed that over 5.8 million people use cryptocurrency, with bitcoin being the favorite option. The currency can be used for a lot of things. It can be used with certain retailers and restaurants, it can be withdrawn at bitcoin ATMs, and it can even be used to fund university degrees. One thing that is especially useful about bitcoin is that there are no fees involved in transactions. This is what makes it appeal to people who send money overseas, as well as international investors and companies. In addition to the large number of people who use bitcoin as a form of currency, there are many others who buy it and hold on to it, in the same way that forex traders do.
Should You Invest?
Bitcoin is independent and decentralized, but it is protected from theft and fraud and transfers are free of transaction fees. It has also led to some high returns for investors, even going so far as to make early investors millionaires. This makes it a good choice of investment for many.
It is easy to invest in bitcoin. You can choose to buy through a bitcoin broker or a bitcoin exchange, or you can work with a bitcoin mining company like Genesis Mining. You will also need to get a bitcoin wallet (basically a digital bank account) to store your currency.
If you are interested in investing in cryptocurrency, bitcoin is well worth considering.