Bitcoin and other popular cryptocurrencies are always on the headlines despite being a volatile creator. Ever since bitcoin was created, it has topped the headlines, and in 2020, after more than a decade, its value has increased dramatically and attracted investors and traders worldwide. The crypto experts believe that the drastic rise in bitcoin price is due to institutional and private investors that have invested in bitcoin currency at the time of the coronavirus pandemic.
There are always some sorts of mysteries that are around cryptocurrencies, and so are in the case of bitcoin. Bitcoin currency was created by a mysterious entity that is either an individual or a group of individuals named Satoshi Nakamoto. After one year of development of bitcoin, Satoshi Nakamoto disappeared, leaving no clue where he went and why and left the entire bitcoin network in bitcoin users’ hands.
Moving forward, we will learn more about bitcoin and its working and will understand whether one should invest in bitcoin or not through cryptoengine website
Bitcoin, and it’s working.
Bitcoin is digital money that allows its users to send money online. People follow the same concept in fiat currencies as they transfer money from one bank account to another online. Cryptocurrencies like bitcoin are different from traditional currencies as they are built on blockchain technology. Blockchain technology is the newest technology that is a great way to send data in cyberspace. The main difference between cryptocurrencies like bitcoin and fiat currencies is that cryptocurrencies are decentralized, which means they aren’t controlled and regulated by central authorities like government or financial institutions.
There are some ultimate advantages that cryptocurrencies like bitcoin offer that include global currencies, meaning they will have equal value in all the countries. This makes it easier for users across the globe to easily transfer the funds for the exchange of goods and services. There are also some demerits of digital assets like bitcoin, and that includes that these are shockingly volatile, and there are wild swings that take place in the price of bitcoin.
Bitcoin’s price history
When bitcoin was introduced, its price was negligible, but its value grew over the years when users across the world started accepting it. In 2017, bitcoin’s price reached heights, and that was the time when its value was at its peak. After 2017, 2020 was the year where investors turned their investments into bitcoin, which raised the price of bitcoin. Cryptocurrency like bitcoin made steady gains in 2017 before its value get collapsed in 2018.
Volatility is another major factor in the cryptocurrency market. If you are an investor and have invested at the start of 2020, you must have experienced tremendous fluctuations in bitcoin’s price, and its value increased by 300%. If you are an investor who has invested in 2018, you must have lost your finances as the bitcoin price collapsed by 73%.
Is it risky to invest in cryptocurrencies like bitcoin?
If you want to invest in bitcoin, you must also prepare yourself to see the worst, which means you have lost all your money. Investing in cryptocurrencies isn’t conventional investing. The market of cryptocurrencies is wild or volatile. Therefore one must keep them updated with current news and trends of the cryptocurrency market to eliminate the risks and loss of their money.
Does bitcoin make a good investment opportunity?
The bitcoin market is risky if we see for investment purpose. The price of cryptocurrencies like bitcoin is highly volatile, and also it is a digital currency, so it is more vulnerable to cyber attacks or scams. Investors must carefully invest in bitcoin, but the best thing about the bitcoin market is that it provides higher returns on investments if the value is increased. Because bitcoin makes a good investment opportunity, it has now entered into the mainstream, and businesses accept it as a payment method. However, still, there is a high risk of investing in bitcoin.
How to buy bitcoin?
Bitcoins can be purchased from bitcoin exchanges, and users can also buy and trade bitcoin from the bitcoin trading platforms. The two most popular trading platforms include Coinbase and more, and these allow users to easily purchase and trade bitcoin.
Founder Dinis Guarda
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