If you are wondering what Bitcoin is and if you should invest in it, then this article is for you. In 2010, the value of one Bitcoin was only 5 cents. Fast forward in 2017 and its value touched $20,000. Again, the price dropped to $8,000 within the next 24 hours, thus causing a huge loss to the currency holders.
If you have been trying to find out more about Bitcoin, this read can help you. According to statistics, around 24% of the Americans know what this thing is. However, the currency still has a value of over $152 billion. That is the one of the most common reasons behind the popularity of this thing. Let’s know what it is and whether you should invest in it.
What Is Bitcoin?
In simple terms, Bitcoin is one of the digital currencies. A digital currency is known as cryptocurrency. The term was invented by an anonymous person in the financial crisis in 2008.
A digital currency account is a like your checking account that you can view online cryptocurrency . In other words, it’s a digital currency that can be viewed but can’t be touched. In case of Bitcoin, you have no physical representation either. All the money exists in the digital form only. No one is there to regulate this type of currency. In the same way, the network is not managed by any entity and the tokens are exchanged between individuals through a complex software system. Instead, the whole thing is decentralized, and is run by a network of computers.
It’s important to note that you can’t use these tokens to pay for everything that you want to buy. In fact, you can use it to buy only from some sellers or stores online. But it can be sold for traditional currency or money. However, more and more companies are beginning to accept Bitcoin and other cryptocurrencies. For instance, Expedia and Over-stock accept it from users. One of the main features of this type of money is that the transaction is completely private and untraceable. That’s one of the many reasons most people prefer this digital form of money.