How many of us know about the digital currency? Well, I think many of us. Bitcoin is also a type of digital currency, but it does not hold any physical form unlike any other fiat currency. It isn’t regulated by any central government or banks or any such agencies. This is also the reason why it has created many controversies so far. Several countries have banned it, and many are trying to regulate it by different methods.
All you need to know about it!
Now it is going to be a bit technical, but we will try to keep it simple. So, the entire system of “how it works” is based on blockchain technology, a system that keeps transactional records safe and secure. It is a decentralized system that is not regulated by any organization or government. This network pairs blocks of multiple transaction histories on a shared public ledger to protect it from any manipulation. The purpose behind creating it was to make online payments easy and accessible without the interruption of central governments or banks. These days’ people are using it as an investment alternative. However, the risk involved in this is quite unpredictable.Price volatility is the major risk involved with this investment. One cannot predict its market value based on present circumstances.
Is it worth owning a Bitcoin?
The risk involved in this makes it suitable for those who have a high tolerance for financial loss. It is advisable to invest in it only if you are well aware of all the aspects of its investment. Many people will tell you to seek advice from your financial advisor before making investments in any type of crypto-currency. Since this is the first cryptocurrency that was created in 2009, it is one of the most traded and popular in digital currencies. One needs a wallet to own a cryptocurrency after purchasing it from crypto currency exchange. The wallet does not store Bitcoin, unlike any other digital currencies, but it stores the private keys to access Bitcoinfrom the blockchain.
For the past few years, many countries are launching their own digital currencies to overcome the use of crypto currencies due to the independence of these currencies from central governments and other organizations. Since the popularity of thisdigital currency makes it the most traded cryptocurrency, it is also one of the most volatile in nature. So it is important for investorsto be aware of every single detail about it before making investments.
