Bitcoin has been in the recent news quite often, and it did surpass 20 thousand dollars for the very first time, and has thus, grabbed the title for the controversial digital asset for the current year. It has been the largest cryptocurrency and it had surged 205 % in year at present. The crypto did successfully gain a good amount of institutional investment, and according to the MicroStrategy, Bitcoin is now involved in the company treasuries. Due to the growing demand of cryptocurrencies from various retail investors, the payment rails such as the Square and PayPal are now integrating them in their services. Well, before you decide upon investing on a crypto, there are several things that you may need knowing in order to have a clear idea on the same. Since you are are going to make an investment, you need to be aware of the ins and outs of it.
Whether or not should you invest in Bitcoin?
Now, this has been the question of the hour, and the cryptocurrency has now crossed 20,000 thousand dollars. Herein, comes the question that whether or not should you investing in it! Well, you ought to count a good number of factors now in order to invest. The price has always been volatile, and now there is no clear explanation about the same. Bitcoin has successfully breached the psychological barrier, and it was trading at more than 23,000 dollars on Thursday. This rally had survived over the last four months, which had again taken different stakeholders. Before someone originally invests in crypto and today, we are going to list down all the parameters right here for your easy perusal. Read on…
Origin of Bitcoin: The origin is pretty unclear. However, it is said that the concept of Bitcoin was actually brought into practice by a group of people, or an individual who went by the name of Satoshi Nakamoto and they have conceptualised this whole accounting system in the aftermath of the 2008 financial crisis. Nakamoto published a peer to peer electronic cash system on a white paper staying that he would “allow online payments to be sent directly from one party to another without going through a financial institution.” As per the Bitcoin.org, it is stated that nothing is more than a mobile app or a computer program that provides a personal Bitcoin wallet and allows a user to send and receive Bitcoins with them.”
Are Bitcoin transactions maintained?
Nakamoto mooted a concept of open ledger which shall contain all the transactions, and that too, in an anonymous and encrypted form. This ledger is known as Blockchain. Talking about a traditional financial deal, we usually see that two parties use fiat money wherein a third party organization, may be a central bank records the transactions being made and thus, see if it is genuine. In the same way, while dealing with a Bitcoin, a chain of computers would work on a constant basis and they would work towards authenticating the transactions, thereby solving the complex cryptographic puzzles. These systems are thus, rewarded with Bitcoins and the entire process is known as Bitcoin mining.
How can you own or acquire a Bitcoin?
When we talk about investment, this is indeed a very obvious question and to answer it, you need to understand that one can easily mine a new Bitcoin with a computing capacity, or may be they have purchased via exchanges, or it can also be through over the counter acquirement or person to person transactions. A Bitcoin exchange operates very similar to that of a bank where one buys and sells Bitcoins with traditional currency too!