With the world ever reliant on the internet, it is no surprise that a lot of investors, traders and other individuals alike have had their interests drawn to the emergence of a valuable digital currency known as Bitcoin. This cryptocurrency has provided an entirely new class of asset for everyone to participate in. It may sound scary for one to invest in bitcoin, but it requires significant time and effort to understand the nitty-gritty of this digital currency. It is important for you to know that "Bitcoin" represents the network or payment system, while "bitcoin" refers to the currency unit.
Some people may find it absurd that one bitcoin can be worth thousands of dollars. However, it is important to know what makes this digital currency valuable. One factor that makes it valuable is its finite nature. Just like gold, bitcoin is a finite resource, which means that it is limited in availability. As new bitcoin is mined, there is always less bitcoin left, making it difficult and more expensive to find and mine. Interestingly, there are only 21 million bitcoins; as time progresses, they become harder to mine.
Bitcoin is useful as it provides a sound, predictable and verifiable monetary policy. One can view the quantity of bitcoins in circulation and when new bitcoins are mined. Also, bitcoin can be easily transferred globally without censorship or the interference of banks. Bitcoin has a significant impact on finance and the global economy. Understanding how valuable this cryptocurrency is, one finds it interesting to invest in it.
Bitcoin Price
Intriguingly, there is no official Bitcoin price as it is being set by the amount individuals are willing to pay. Generally, Bitcoin's price is represented by the cost of one bitcoin. From a fraction of a penny, bitcoin has risen in price to hit a mark of over $10,000 in eight years. Just like any other market, this cryptocurrency has risen in price at a very fast pace, with subsequent slow and steady decline until it stabilizes. Nevertheless, it is global and not affected by any country's financial condition.
Reasons You Should Trade Bitcoin
There is no other monetary platform that offers you the benefits that Bitcoin does. There are several factors that make trading Bitcoin unique and beneficial.
Bitcoin Is Not A Fiat Currency:
This means that no country or government controls Bitcoin. It is independent of any monopoly from corporations. No economy has a stranglehold on this cryptocurrency as it reacts to various range of events. Events such as the U.K Brexit, India's demonetization, and Trump's election has influenced the value of Bitcoin. All these events cut across various countries, meaning that it is not controlled by any nation.
Bitcoin Is Available 24/7:
Unlike other markets that are bound to the working hours of the country they operate in, the Bitcoin market is opened to trade and other financial activities all round-the-clock. Via available exchanges, people can buy bitcoin anytime, anyday.
Bitcoin is Volatile:
Cryptocurrencies in general are known for their rapid and consistent price movements; that includes Bitcoin. Traders can easily get in and out of the Bitcoin market with profits, thanks to its volatility.
Having come to an end of this study, it is vital to understand how this cryptocurrency operates in order to trade efficiently. To know more about Bitcoin and how to get started, please visit this link: Bitcoin Trader Review Site
