Bitcoin was first introduced in 2008 at the time of the financial crisis. A mysterious entity named Satoshi Nakamoto founded a new digital currency named Bitcoin. It is a currency that was developed to be decentralized, which means it is free from the oversight of the government. Cryptocurrencies are digital currencies stored on hardware devices like computers or mobile and are sent and received following the peer-to-peer network without the government or any other intermediaries’ involvement.
During the first year of this newly created digital currency, miners involved in cryptocurrency created traded bitcoins to analyze the bitcoin market. The first bitcoin transaction that took place was in 2010 on 22nd May when an individual bought two pizzas for 10,000 bitcoins. At that time in 2010, four bitcoins were equal to one penny. As of now, the value of one bitcoin has reached heights.
Bitcoin has motivated thousands of developers, and they started developing cryptocurrencies with different functions and features. All the cryptocurrencies as built on blockchain technology and the creation of cryptocurrencies has led to the growth of bitcoin and blockchain. Blockchain is a distributed public ledger that is used to record transactions digitally. During 2017, bitcoin gained huge popularity for the first time as its price increased dramatically.
As of now 2020, definitely the cryptocurrency has fallen as it was earlier, and this is all due to price volatility, increased competition, and limited adoption of bitcoin currency. This has become the reason why people are worried about investing in bitcoin. You can keep yourself updated about bitcoin news by clicking the image given below
Bitcoin vs. other digital assets
It’s been eleven years since bitcoin is there in the cryptocurrency world, and people have a positive sentiment about bitcoin currency. Some investors consider bitcoin as a digital store and found it a valuable asset or a store of value that has a great worth against gold and the US dollar. The major difference between fiat currencies and digital currencies like bitcoin is that bitcoin can never be hyperinflated, and this is not the case with fiat currencies.
Bitcoin works on blockchain technology, and it is a computer code where there exist only a limited amount of bitcoins, i.e., 21 million. As of today, there are around 18.5 million bitcoins that are in circulation, and only 2.8 million bitcoins are there that are left to mine. The price of determining by its demand and supply and in the market, and because of its limited supply, it mainly depends on its demand.
Bitcoin has a magnetic attraction, and many businesses and firms have started accepting digital assets like bitcoin as a medium of exchange. The online monetary platforms are integrating the cryptocurrencies to their platforms, which will help create more accessibility of digital currencies.
Understand the cryptocurrency market
The big tech-savvy companies are joining the cryptocurrency market and are coming forward to invest in bitcoin, but this doesn’t mean that normal investors should invest in it. It is important to learn about the bitcoin market, its underlying technology, the challenges, advantages, and risks involved in investing in bitcoin. Investors must know the risks of bitcoin investment as it is crucial to learn about the potential gains through bitcoin investment. The internet and search engines are full of details about bitcoin currency, and you can find many videos, images, and other educational resources to learn about the bitcoin market.
Is it worth investing in bitcoin?
It is important to learn about the market before you invest in any of the cryptocurrencies. Still, if we talk specifically about bitcoin, yes, there are many reasons to invest in bitcoin. You must only invest after learning about the market and its risks. Bitcoin is considered digital gold, but it provides greater returns on investments.
Not only this but bitcoin has become the currency that is widely accepted as a medium of exchange, and it has gained acceptance across the world as a valuable asset. As of now, people across the world find bitcoin more suitable than fiat currencies and are investing in it. But with many benefits, there come risks, so it is always better to learn about the market from current news and events.
