Before 2017, the only legal way to invest and grow one’s money was through purchasing equities, derivatives, commodities, currencies, and bonds. Though they require a high level of financial knowledge, these financial instruments are still widely used by many seasoned investors. This analysis can be time-consuming if it turns out to be complicated.
But in 2017, a new class of asset became highly well-known, drawing in many investors and experiencing an unprecedented rise in value: Bitcoin Loophole. Although Bitcoin was introduced in 2009, it gained traction only in 2017.
Bitcoin’s price began the year at Rs 7,000, peaked at Rs 15,00,000 by the end of 2017, and plunged to Rs 3,50,000 in 2018. The value increased up to a value of $65000. Despite the recent dip in its value, it is expected to rise to $70,000.
Speculators, a type of investor, saw an opportunity to make money due to the high volatility and its potential for both up-and-down movements.
What caused this to occur? In a nutshell, what is Bitcoin?
This blog is an excellent introduction to Bitcoin and how it can be used as a means of payment, a medium of exchange, and a method of portfolio diversification. First, though, let’s get our heads around digital currency.
Answering the Question, “What Are Cryptocurrencies?”
Coins and tokens in the form of Cryptocurrency are digitally created and stored. The Indian rupee is just one example of a digital currency that can be used for online transactions; similarly, cryptocurrencies can be used to buy and sell goods. However, the individual or company must be comfortable accepting your Cryptocurrency as payment for the goods or services they provide.
Cryptocurrencies may sound like digital payments, but they differ due to the underlying technology and asset. Cryptocurrencies are also not tangible, unlike the Indian rupee, which can be exchanged for cash at any bank. However, Bitcoin is the most lucrative and liquid of all cryptocurrencies.
So, what exactly is Bitcoin?
In many ways, the Blockchain can be compared to a digital ledger. The owner approves and verifies every transaction. Bitcoins ensure the privacy of both the sender and the receiver by using a system of private and public keys. Private keys should be confidential. You should treat these keys like the password to your email account and keep them safe at all costs.
Bitcoin: A Brief History
Bitcoin, the first digital currency, was released in 2008 under the alias Satoshi Nakamoto. Some believe that its creator is an individual, while others believe that a group of people still manages its Blockchain.
It all began with the release of the Bitcoin Whitepaper, an academic paper that introduced the concept of Cryptocurrency. Bitcoin’s whitepaper states that its developers set out to create a decentralized, innovative “peer-to-peer electronic cash system” with no central bank or other governing body.
Bitcoin Investment Profitability
Bitcoins are among the most hazardous financial instruments ever traded. It happens when supply and demand are not well balanced, and there is a high demand without adequate regulation. Bitcoin profits are dependent on a stroke of luck.
Bitcoin investing is highly risky, as you stand to gain if the price rises but lose money if it falls. In addition, there is no method for forecasting future trends or estimating potential price movements. Therefore, you should be willing to take a significant financial hit if you lose your investment and have a high-risk tolerance.
When and where can you buy Bitcoins?
Possessing Bitcoins does not necessitate knowledge of mining or the complexities of hashes and blocks. Bitcoins can be purchased on any of the established Cryptocurrency exchanges just like any other digital asset, such as stocks and shares.
To buy Bitcoins right now, you need to join a crypto platform by signing up for an account, even if it’s just a simple one. Investors can select their preferred payment method on the respective platform when this occurs.
Wrapping it up !!!
The ethical status of cryptocurrencies is a contentious topic. Regardless, Bitcoins continue to be a valuable investment option as their price continues to climb. With this foundational knowledge of Bitcoins, you can now acknowledge or dismiss the bubble. Check Bitcoin Code for further info.
