For those who don’t know about bitcoins, it is a digital payment system with no intermediaries or banks. It was said to be invented by a person or a group hiding under the name Satoshi Nakamoto and was released as an open source software in 2009. The US Treasury categorized it as a decentralized virtual currency but it is known as a cryptocurrency. To record its transaction, it uses blockchain technology, which is a publicly distributed ledger for certain financial transactions. Mostly used for bitcoin but some believe it could be used in many financial applications in the future.</^p>
Bitcoins are now on the trend as more and more people invest to mine it using their high end computers. Here’s some reasons why you should invest in Bitcoins.
Why you should invest in Bitcoins ?
1. Bitcoins are scarce and useful
Take gold as an example currency. Gold is scarce element as there is only a limited amount of it available, and it depletes every time a gold is mined.
Same is true with bitcoins as there are only 21 million of it in existence and the chances are finding it become smaller as time passes.
It is also very useful as bitcoins provide sound and predictable monetary policy that is verifiable by everyone. It is also easy to see when new bitcoins are created or the number of bitcoins in circulations. It can also be sent from anywhere in the world to anywhere else in the world and nothing can block it.
2. Bitcoin’s price
Bitcoin’s price is nothing official. It is just being set to whatever people are willing to pay. Its price is basically shown as the cost of one bitcoin but exchanges allows you to buy any amount or even a fraction of it.
3. Bitcoin’s value
Bitcoin through the years has generally increased in value in an interestingly fast pace and is followed by a stead but slow downfall until it steadies.
4. Bitcoin’s security
As with other valuable things, Bitcoins are also susceptible to hackers, thieves and scammers. You also need to secure your bitcoins in the event that the inevitable would happen. If you are very serious in bitcoin investment and seeing yourself buying a large amount, consider getting bitcoin wallets such as the ledger nanos and the trezor in order to make your bitcoins safer. There are also tools available to analyze charts and understand bitcoin’s price history such as Bitcoin Wisdom and Cryptowatch. They are also very global and flexible and is usually not affected by a country’s financial situation or stability. It is not affected since it is apolitical and is not under the control or influence of any government.
It’s very important to have knowledge on Bitcoin before investing into it. It is still a neophyte to the society and needs time to truly understand its purpose and objectives. Take some time to understand Bitcoin, how it works, how to secure bitcoins, and about how Bitcoin differs from fiat money.