Before you decide to invest in Bitcoin, there are a couple of things that you need to take into consideration and be aware of. The first thing you are likely to want to understand that is just why bitcoin is suddenly becoming so popular. Because everything is now available online, it is really no surprise that currency needed to be developed for this as well. Just like much of the internet, bitcoin is open to everybody, being completely decentralized in nature.
Do You Want to Invest in Bitcoin?
It may be hard to understand that a single bitcoin can be worth hundreds if not thousands of dollars. The reason for this is because bitcoins are useful and because they are scarce. Just as with gold, there is a limited amount of Bitcoin available. This means that every time this crime is found, which, like gold, is known as mining, it becomes more difficult and more expensive to find more. Overall, only 21 million bitcoin exist, and mining for them is now incredibly difficult.
The usefulness is also very important. Bitcoin as a verifiable monetary Policy, which is actually one of its key features. This means anyone can see when a new bitcoin has been mined and how many bitcoin are currently in circulation. No matter where you are in the world you can send and receive bitcoin. It is not possible for a bank to suddenly close your account or block your payment. Additionally, it means you do not have to deal with the government’s monetary policies, which are always highly flawed.
Next, there is the issue of price. No actual price has been set for bitcoin, as it is not governed by a central authority. Hence, it is worth whatever somebody agrees to pay for it. Usually, the price that is indicated is that of a single Bitcoin. However, it is possible to buy pieces of Bitcoin, which means you don’t have to pay the thousands of dollars that a single bitcoin is now said to be worth.
The reality is also that nothing is secure with bitcoin or with any other form of investment. Hence, it is impossible to say when you should buy and when you should sell. However, looking at historic trends, bitcoins tend to suddenly shoot up in value after which it slowly drops a little and reaches a stable point. Right now, the value of bitcoin is continuing to rise. One of the reasons for that is because there are so many political and economic uncertainties across the world, none of which could have a negative impact on the value of bitcoin.
If you have decided that the time is right for you to invest in Bitcoin, how hard or easy that is depends entirely on where you are. Usually, the more developed countries have more liquidity and more options. This means that it is easier to find a bitcoin broker in places like the United States than what it is in places like Kathmandu.