Investing in Bitcoin

Investing in Bitcoin

Cryptocurrency is no longer a new term for people and most people know about crypto currency or at least have heard about it if not aware about them. In the last few years crypto currency has really taken the world on stride and more and more people are interested in investing in crypto currency of some form or the other. Out of many different types of crypto currency the most famous one is Bitcoin or we can clearly say that Bitcoin is a synonym for crypto currency. Bitcoin is the one of the biggest buzzwords when it comes to financial technology industry and it can also be stated that it is least understood. People wish to enter the cryptocurrency race and especially in Bitcoin as this are most rewarding. IN the year 2016 the price of a bitcoin was $710.09 and on Feb 2019 the exchange rate for a single Bitcoin was $3890. Now it is not necessary for any person to have a economics degree to understand that people who invested in bitcoin a few years ago are now racking in fortunes and patting themselves on their back however the good news is that it is never too late to get into this race.

Bitcoin is the most favoured crypto currency because of several reasons and that is why when people talk about investing in crypto currency they really mean investing in Bitcoin. Bitcoin is a digital currency that promises lower transaction fees than the traditional online payment mechanisms. In addition to this the value of Bitcoin depends on the faith of investors, this crypto currency’s integration into financial institution and at the same time public willingness to learn about crypto currency. Bitcoin is widely accepted worldwide and when someone pays for something using bitcoin, computers on the bitcoin block chain rush to check whether the transaction is accurate or not. Investors or consumers who wish to trade bitcoin need a place to store it whether it is a digital wallet which they in turn connect to a bank account, credit card or debit card. Bitcoin can also be traded for traditional currencies as traders join an exchange or an online marketplace to trade bitcoin. Bitcoin is the favourite currency for traders as well as investors for several reasons and this is the reason more people wish to trade and invest in Bitcoin when it comes to crypto currency.

Now to understand Bitcoin largely Bitcoin functions by the same principles as the U.S.dollars and the lines of code that make up each Bitcoin are worthless in and of themselves and this is why the international market has come to terms to value each bitcoin in thousands of dollars. This is because of the reason that Bitcoin is rare and scarce and it is more difficult to obtain a Bitcoin over a period of time. Just like other crypto currencies even Bitcoin operates on a technology called block chain. Block chain is referred to as a distributed, decentralized, public ledger which is easier to understand than it actually sounds. Out of all the crypto currencies Bitcoin is the most favourite and in demand because of many reasons out of which the most important is its rising value and thus people wish to invest in Bitcoin for their future.