Bitcoin is a digital or virtual currency, abbreviated as “BTC”. It is a type of cryptocurrency which is operated by decentralized authorities. Bitcoins are not published by any banks, which make them illegal in some countries. Despite being illegal, still, it has the high popularity and has prompted the launch of other virtual currencies also.
There is no physical Bitcoin price available; they are usually stored on a cloud or in bitcoin-wallets specified by Bitcoin communities.Bitcoin offers lower transaction rates as compared to other online payment mechanisms and all the Bitcoin transactions are authenticated by a massive amount of computing power.Bitcoins are created by mathematical encryption algorithm which helps in bitcoin transactions.
Bitcoinpricevalues are increasing continuously. In 2017, the price of bitcoin starts from $1,000 and at the end of the year, the value was $19,000. Recently, the cryptocurrency has declined in its value. In October 2019, the range of price point was $8,000 to $9,000.
The price of bitcoin quite depends on mining, with the increase in network of blockchain, theprice of bitcoins also increases.
Investing in Bitcoin is a good idea?
As we all know that digitalization is on its peak, so many supporters who believe that digital currency is the future. They believe that bitcoin gives instant payment, no payment charges for transactions, as it is not operated by centralized authorities so it will be easy for them to exchange bitcoin with traditional currencies, the exchange rate of bitcoin against dollar can also attract various potential investors. Even bitcoin can be used as an alternative fiat currency.
Risks of Bitcoin Investment:
Many people purchase bitcoin for its investment value rather than using it as an exchange medium. Many investors alerts have been issued by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA) and the Consumer Financial Protection Bureau (CFPB) and other agencies because of the lack guaranteed value and the inherent risks.
Generally, bitcoin does not have a much long-term track record or any history of credibility. With increasing in its popularity, they are becoming less experimental every day. They are still in the phase of development and are consistently evolving.