Bitcoin is an online digital currency, just like the dollar or the pound, but with some exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin taps into a peer-to-peer payment system where there are no intermediaries and goods can be securely transferred between any two people on the planet. It is connected to a large network of computers, and the unit of currency for the Bitcoin system (appropriately called a Bitcoin) can simply be purchased by joining the wider network. Bitcoin provides a fast, cheap and secure transaction alternative, but few are willing to go for it. So the one million dollar question still remains: Is Bitcoin a safe investment?
Bitcoin is only a few years old, it’s an interesting creation that has left many in awe and, for the record, has reached a name on the financial company’s top boards. Its popularity has increased and this has led some leading companies such as Virgin Galactic to consider it as an acceptable source of payment. Bitcoin prices are rising up to 10% and continue to dominate as the alpha of the market, and this has made many interested in investing in it.
Another feature of Bitcoin is that it does not have a central bank and is not controlled by a central government. It is a global currency, and its creation and existence lies behind a complex and intricate mathematical algorithm that allows it to monitor government-related failures. Cases of political instability and government absurdity that embarrass the economy and throw years of investment in the currency to the wind do not occur in the cryptocurrency system. This creates a safe and friendly investment opportunity with low inflation risk.
The reverse side
Cryptocurrency has both disadvantages and always surprising advantages. As mentioned, this thing is still taking baby steps; and with that comes great uncertainty. Bitcoin prices are volatile; is currently rising sharply and can range from 30% to 40% per month. The world is still surprised by its appearance, and there are very few bitcoin holders and bitcoin holders. This leads to unanswered questions and cold fear among people, as investing in a new unpredictable “gold mine” can lead to devastating consequences. Its novelty creates unregulation and scares away potential investors.
The mystery surrounding the Bitcoin system is one of the main factors to consider. Anything can happen and everyone involved in the Bitcoin market is on high alert. China stopped using Bitcoin in December 2013, which caused its value to plummet from $1,240 to $576 in just three weeks. Programmers also determine the functionality of this global currency, and many are hesitant to risk their finances for some group of geeks. This discourages many from venturing into the system and greatly increases the risk of Bitcoin investment.