If you are wondering what Bitcoin is and whether it is worth investing in, then this article is for you. In 2010, the value of one bitcoin was only 5 cents. In 2017, its value reached $20,000. The price dropped back down to $8,000 over the next 24 hours, causing massive losses to currency holders.
If you’ve been trying to learn more about Bitcoin, this read may help you. According to statistics, about 24% of Americans know what it is. However, the currency is still worth more than $152 billion. This is one of the most common reasons for the popularity of this item. Let’s find out what it is and whether it is worth investing in.
What is Bitcoin?
In simple words, Bitcoin is one of the digital currencies. Digital currency is known as cryptocurrency. The term was coined by Anonymous during the 2008 financial crisis.
A digital currency account is similar to your checking account, which you can view online. In other words, it’s a digital currency that you can look at, but you can’t touch. In the case of Bitcoin, you also have no physical representation. All money exists only in digital form. There is no one to regulate this kind of currency. In the same way, the network is not controlled by any organization and tokens are exchanged between people through a complex software system. Instead, everything is decentralized and managed by a network of computers.
It is important to note that you cannot use these tokens to pay for anything you want to buy. In fact, you can only use it to shop at certain 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 invest in Bitcoin?
Remember: Before you choose to invest in Bitcoin or any other digital currency, make sure you understand the risks involved in this system. Volatility is one of the main risks. This means that the value of your money can fluctuate significantly within 24 hours. In fact, the rise or fall in value can be up to 30%. Another problem is that most digital currencies that can be seen today will lose their value within 5 years according to most experts.
To be on the safe side, we recommend that you only invest what you can afford to lose. For example, if you have $1,000, you can invest $10. And if you lose this amount, it will not create financial problems for you.
Hopefully, you now know what Bitcoin is and whether you should invest your hard-earned money in it. Remember: you should not invest a lot of money, otherwise you can get into serious financial problems.