If you are wondering what Bitcoin is and whether you should invest in it, then this article is for you. In 2010, the value of one Bitcoin was only 5 cents. Fast forward to 2017 and its value has reached $20,000. Again, the price fell to $8,000 within the next 24 hours, causing a huge loss for currency holders.
If you’ve been trying to learn more about Bitcoin, this may help. According to statistics, about 24% of Americans know what it is. However, the currency still has a value of over $152 billion. This is one of the most common reasons for the popularity of this thing. Let’s say what it is and whether you should invest in it.
What is Bitcoin?
Simply put, Bitcoin is one of the digital currencies. Digital currency is known as cryptocurrency. The term was coined by an anonymous person during the 2008 financial crisis.
A digital currency account is similar to your checking account that you can see online. In other words, it is a digital currency that can be seen but not touched. In the case of Bitcoin, you don’t even have a physical representation. All money exists only in digital form. There is no one to regulate this type of currency. In the same way, the network is not managed by any entity and tokens are exchanged between individuals through a complex software system. Instead, the whole thing is decentralized and run by a network of computers.
It’s important to note that you can’t use these tokens to pay for anything you want to buy. In fact, you can only use it to buy from some retailers or online stores. But it can be sold for traditional currency or money. However, more and more companies are starting to accept Bitcoin and other cryptocurrencies. For example, Expedia and Over-stock accept it from users. One of the main features of this type of money is that the transaction is completely private and untraceable. This is one of the many reasons why most people prefer this digital form of money.
Should You Put Money Into Bitcoin?
Remember: Before you decide to invest in Bitcoin or any other digital currency, 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 seen today will lose their value within 5 years, according to most experts.
To be safe, we suggest you only invest what you can afford to lose. For example, if you have $1000, you can invest $10. And if you lose that amount, it won’t create any financial problems for you.
We hope you now know what Bitcoin is and whether you should invest your hard earned money in it. Remember: you shouldn’t invest a lot of money or you could get into serious financial trouble.