Bitcoin is an online digital currency, just like a dollar or a pound but with several exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin engages in a peer-to-peer payment system where no intermediaries exist and goods can be securely transferred between any two people in the world. It is associated with a heavy network associated with computers and the unit of currency for the Bitcoin system (appropriately called Bitcoin) can be simply acquired by joining the vast network. Bitcoin provides a fast cheap and safe transaction alternative but few are prepared to take the jump for it. So the one million dollar question still lingers, can be Bitcoin a secure investment?
Bitcoin is only a few years old, an interesting development that has awed many and for the particular record, has attained a name in the top financial charts. The popularity has spanned and it has directed some of the top businesses like Virgin mobile Galactic to consider it as an suitable source of payment. Bitcoin prices enhance at rates of up to 10% and continue to dominate as the alpha from the market and this has made many interested in investing in it.
Another special feature of Bitcoin is that it does not have the central bank and neither really does a central government control it. It’s a global currency and its creation and existence lies behind the complex and geeky mathematical formula that enables it to shadow federal government related mishaps. Cases of politics instability and government absurdities that will plunge the economy down to shame and lead years of investments inside a currency down the drain do not occur in the crypto-currency system. This creates a secure and friendly investment opportunity with low inflation risks.
With an ever-amazing upside, crypto-currency also has its downs. As mentioned, this thing is still taking baby steps; and with that comes great uncertainties. Bitcoin prices are volatile; currently increasing sharply and can fluctuate at 30% in order to 40% in a month. The world is still surprised at its emergence plus there exists very few Bitcoin holders plus Bitcoin. This leads to unanswered questions and cold fear among people as investing in a new unpredictable ‘gold mine’ can yield devastating effects. For more info regarding trusted bitcoin investment sites check out our web page.
The newness brings forth lack of regulations and scares off potential investors.
The enigma surrounding the Bitcoin system is a major factor to be considered. Anything can happen and everyone participating in the Bitcoin market is on a high alert. China in December 2013 eliminated the use of Bitcoin and this led to a drastic drop to its value from $1240 to $576 in only three weeks. Programmers also determine the functionality of this global currency and many question the thought of risking their finances for some group of geeks. This stops many from venturing into the program and increases the risk of Bitcoin investment ever so highly.