Do you ask if you should invest in Bitcoin? If you have been around any financial news child lately, no doubt, it is understood about the meteoric increase in the best known cryptomonation in the world.
And if you are like many people right now, you’re probably wondering, “Bitcoin, yes or no?”
Should you invest? It’s a good option? And what the hell is Bitcoin anyway?
Well, here are some things you should know about Bitcoin before investing. Also keep in mind that this article is only for informational purposes and should not be taken as any type of financial advice.
What is Bitcoin?
Bitcoin is known as a cryptomonecura or a digital currency. It is basically money online. Like any currency, you can change it for other currencies (such as saying, Buy Bitcoins with US dollars or vice versa) and fluctuates in relation to other currencies as well.
However, unlike other currencies, it is decentralized, which means that there is no central bank, country or government in charge of it. And that means that it is not as susceptible to the government or the mismanagement of the Central Bank.
# 1 Easy to send money
Because it is decentralized, this also means that you can send a friend Bitcoin (money) on the other side of the world in seconds without having to go through a bank broker (and pay banking rates).
This fact only makes Bitcoin very popular. Instead of waiting for a bank transfer that can take days, you can send your payment in seconds or minutes.
Limited Supply # 2
There are only 21 million bitcoins that will have been killed. This limits the amount of Bitcoin that can occur. This is like saying that a government can not print money because there is a limited supply of invoices, and will no longer be printed.
When there is an established supply, its purchase power is preserved and the currency is immune to fugitive inflation.
This limited supply has also helped contribute to the increase in the price of Bitcoin. People do not want a coin that can be printed, or inflated, to infinity by the whim of greedy government.
# 3 private
Most people think that Bitcoin is completely anonymous. But in reality it is not anonymous, it is more private. All Bitcoin transactions ever made can be seen in the Blockchain, the book of Public Bitcoin.
But its name and identification of details behind the transaction is not seen. Each transaction is linked to an address: a text chain and characters. Then, while people can see their address, there is no way to link that address.
Many people who do not like banks that spy on them (or tell them how much of their own money can or can not move), really like this privacy feature.
# 4 cheaper to transact
Many companies have to take Visa or Mastercard these days to stay competitive. However, these cards take some quite substantial rates of each sales transaction.
But a merchant who accepts Bitcoin does not pay these strong honors, so he puts more money in his pockets.