What is Bitcoin and Is It a Good Investment?

What is Bitcoin and Is It a Good Investment?

Bitcoin (BTC) is a new type of digital currency - with cryptographic keys - that is decentralized to computer networks used by users and miners around the world and not controlled by one organization or government. This is the first digital cryptocurrency that has gained public attention and is received by more and more traders. Like other currencies, users can use digital currencies to buy goods and services online and at some physical stores that accept them as a form of payment. Currency traders can also trade Bitcoin on the Bitcoin exchange.

There are several main differences between Bitcoin and traditional currencies (for example US dollars):

Bitcoin has no centralized authority or clearing house (eg Government, central bank, MasterCard or Visa network). The peer-to-peer payment network is managed by users and miners around the world. Currency is anonymously transferred directly between users via the internet without going through a clearing house. This means transaction costs are much lower.
Bitcoin is created through a process called "Bitcoin mining". Miners around the world use mining software and computers to solve complex bitcoin algorithms and to approve Bitcoin transactions. They are provided with transaction fees and new Bitcoin generated from solving the Bitcoin algorithm.

There are a limited number of Bitcoins in circulation. According to the Blockchain, there were around 12.1 million in circulation on December 20, 2013. The difficulty to mine Bitcoin (breaking algorithms) became more difficult because more Bitcoins were generated, and the maximum number circulating was limited to 21 million. The limit will not be reached until about the year 2140. This makes Bitcoin more valuable because more people use it.
A general ledger called the 'Blockchain' records all Bitcoin transactions and shows each of the ownership of each Bitcoin owner. Anyone can access the general ledger to verify transactions. This makes digital currencies more transparent and predictable. More importantly, transparency prevents fraud and double spending from the same Bitcoin.
Digital currency can be obtained through Bitcoin mining or Bitcoin exchanges.
Digital currencies are accepted by a limited number of traders on the web and at some brick-and-mortar retailers.
Bitcoin wallets (similar to PayPal accounts) are used to store Bitcoin, private keys and public addresses as well as to transfer Bitcoin anonymously between users.
Bitcoin is not insured and is not protected by government institutions. Therefore, they cannot be recovered if a secret key is stolen by a hacker or lost to a failed hard drive, or because of the closure of a Bitcoin exchange. If the secret key is lost, the associated Bitcoin cannot be recovered and will exit the circulation. Visit this link to get a FAQ about Bitcoin.

I believe that Bitcoin will get more revenue from the public because users can remain anonymous when buying goods and services online, transaction fees are much lower than credit card payment networks; public ledgers can be accessed by anyone, who can be used to prevent fraud; Currency supply is limited to 21 million, and payment networks are operated by users and miners rather than central authorities.

However, I do not think that this is a large investment vehicle because it is very unstable and unstable. For example, bitcoin prices grew from around% 2414 to a peak of 241% USD this year before falling to% 24632 per BTC at the time of writing.

Bitcoin surged this year as investors speculated that the currency would get wider acceptance and that it would increase prices. The currency fell 50% in December because BTC China (the largest Bitcoin operator in China) announced that it could no longer receive new deposits due to government regulations. And according to Bloomberg, China's central bank prohibits financial institutions and payment companies from handling bitcoin transactions.

Bitcoin is likely to get more public revenue from time to time, but the price is very volatile and very sensitive to the news - such as regulations and government restrictions - which can have a negative impact on the currency.

Therefore, I do not advise investors to invest in Bitcoin unless they are purchased with less than% 2410 USD per BTC because this will allow for a much greater safety margin.

Otherwise, I'm sure it's true Bitcoin (BTC) is a new type of digital currency - with cryptographic keys - decentralized to computer networks used by users and miners around the world and not controlled by one organization or the government. This is the first digital cryptocurrency that has gained public attention and is received by more and more traders. Like other currencies, users can use digital currencies to buy goods and services online and at some physical stores that accept them as a form of payment. Currency traders can also trade Bitcoin on the Bitcoin exchange.

There are several main differences between Bitcoin and traditional currencies (for example US dollars):

Bitcoin has no centralized authority or clearing house (eg Government, central bank, MasterCard or Visa network). The peer-to-peer payment network is managed by users and miners around the world. Currency is anonymously transferred directly between users via the internet without going through a clearing house. This means transaction costs are much lower.
Bitcoin is created through a process called "Bitcoin mining". Miners around the world use mining software and computers to solve complex bitcoin algorithms and to approve Bitcoin transactions. They are provided with transaction fees and new Bitcoin generated from solving the Bitcoin algorithm.
There are a limited number of Bitcoins in circulation. According to the Blockchain, there were around 12.1 million in circulation on December 20, 2013. The difficulty to mine Bitcoin (breaking algorithms) became more difficult because more Bitcoins were generated, and the maximum number circulating was limited to 21 million. The limit will not be reached until about the year 2140. This makes Bitcoin more valuable because more people use it.
A general ledger called the 'Blockchain' records all Bitcoin transactions and shows each of the ownership of each Bitcoin owner. Anyone can access the general ledger to verify transactions. This makes digital currencies more transparent and predictable. More importantly, transparency prevents fraud and double spending from the same Bitcoin.
Digital currency can be obtained through Bitcoin mining or Bitcoin exchanges.
Digital currencies are accepted by a limited number of traders on the web and at some brick-and-mortar retailers.
Bitcoin wallets (similar to PayPal accounts) are used to store Bitcoin, private keys and public addresses as well as to transfer Bitcoin anonymously between users.
Bitcoin is not insured and is not protected by government institutions. Therefore, they cannot be recovered if a secret key is stolen by a hacker or lost to a failed hard drive, or because of the closure of a Bitcoin exchange. If the secret key is lost, the associated Bitcoin cannot be recovered and will exit the circulation. Visit this link to get a FAQ about Bitcoin.

I believe that Bitcoin will get more revenue from the public because users can remain anonymous when buying goods and services online, transaction fees are much lower than credit card payment networks; public ledgers can be accessed by anyone, who can be used to prevent fraud; Currency supply is limited to 21 million, and payment networks are operated by users and miners rather than central authorities.

However, I do not think that this is a large investment vehicle because it is very unstable and unstable. For example, bitcoin prices grew from around% 2414 to a peak of 241% USD this year before falling to% 24632 per BTC at the time of writing.

Bitcoin surged this year as investors speculated that the currency would get wider acceptance and that it would increase prices. The currency fell 50% in December because BTC China (the largest Bitcoin operator in China) announced that it could no longer receive new deposits due to government regulations. And according to Bloomberg, China's central bank prohibits financial institutions and payment companies from handling bitcoin transactions.

Bitcoin is likely to get more public revenue from time to time, but the price is very volatile and very sensitive to the news - such as regulations and government restrictions - which can have a negative impact on the currency.

Therefore, I do not advise investors to invest in Bitcoin unless they are purchased with less than% 2410 USD per BTC because this will allow for a much greater safety margin.

If not, I'm sure it's true

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