Bitcoin, and cryptocurrencies in general, divide many people like no other investment. Is it a recommendable investment? Is it a speculative bubble? Each side defends its views. But let's get to the point.
Bitcoin is the first decentralized digital currency. It has a finite supply, which means that only 21 million bitcoins exist.
It is also the most traded cryptocurrency in the world, which means that it can be used to buy goods and services from any person or company that accepts bitcoin as a form of payment.
This cryptocurrency is not subject to inflation because it has a fixed supply and demand. This means that the value of bitcoin will continue to increase (beyond occasional adjustments) as more people use it for transactions and investment purposes.
What is Bitcoin and how does it work?
Bitcoin is an increasingly popular cryptocurrency and global payment system, despite the ups and downs of cryptocurrency prices, a world characterized by risk and volatility.
Bitcoin is the first decentralized digital currency, as the system operates without a central bank or a single administrator — how nice!
Operations with this cryptoasset are based on peer-to-peer networks and transactions are carried out between users directly, without intermediaries. These transactions are verified by the network nodes using cryptography and recorded in a public distributed ledger called blockchain (a technology that is changing the world).
Bitcoin was invented by a supposedly unknown person or group of people under the name Satoshi Nakamoto and released as open source software in 2009. It is the grandmother of cryptocurrencies.
What are the advantages of buying Bitcoin?
The main advantages of buying Bitcoin are:
- You can use it to send or receive money from anyone with an Internet connection.
- Bitcoin is open to everyone, which means you don't need a bank or other financial institution to approve it to start using it.
- It can be used in almost any country and there are no restrictions on its use.
- You can buy bitcoins anonymously if you wish, but they are not completely untraceable as you must first buy them with traditional or fiat currency.
- You can buy bitcoins from anywhere
Why should I buy bitcoin now?
Bitcoin is a cryptocurrency that has become the new gold. It is similar to gold in the sense that it is a scarce commodity, but unlike gold, Bitcoin can be used as a form of payment without having to carry it in heavy bars. Do you want to invest in Bitcoin? You will find many ways here of how to buy Bitcoin in the UK.
This is the most popular cryptocurrency and has been around for almost 10 years. There are many reasons why you should buy bitcoins now.
I'll explain the main one of them all: history. Even though in the last few days the prices of many cryptocurrencies have collapsed I have to tell you that this has happened before. Yes, the market has crashed and then soared to record highs. Older bitcoin investors know this well.
The dangers of buying bitcoin
One of the main dangers of bitcoin is that it can be used as an investment vehicle, and people can lose all their money investing in bitcoin and then see its value drop dramatically. Something we have seen very recently with Luna.
Bitcoin can be a great investment vehicle, but it is also susceptible to drops in value. You should never invest money you can't afford to lose. The volatility of Bitcoin's value could generate large losses or gains, so be careful when buying or investing in cryptocurrencies.
There are many other dangers associated with buying bitcoin, including the fact that Bitcoin has no intrinsic value, or that it could be hacked and stolen from your account. But then again, bank robbers do exist, don't they?
Is buying cryptocurrencies today risky? The answer from our financial investment experts is NO.
The future of blockchain and cryptocurrencies is a far cry from their past, and the paths they took led to bitcoin's rise and subsequent fall.
Today, once the cryptocurrency bubble is over, it is safe to say that the market for these payment alternatives is poised to grow again.