All the things you need to know about Bitcoin

All the things you need to know about Bitcoin

In recent months, the Bitcoin currency has gained high notoriety worldwide for the exorbitant returns it has been having, which is why many people have decided to invest in it. In this article we will tell you a little more about this currency and its risks as an investment alternative.Click here for bitcoin price.

What is Bitcoin?

Bitcoin is a currency. To go into more detail with this, we will mention what are the characteristics that any currency must have in order to be considered as such: 1) Means of payment, 2) Deposit of value and 3) Unit of account. Currently, Bitcoin has points 2 and 3 since a person can invest in it and different assets can be valued in their unit. It is still in the process of achieving point 1 as there are still some assets that cannot be acquired.Visit this site for bitcoin price.

Once clear that bitcoins are a currency, we can think about the main differences that bitcoins have with traditional currencies. Bitcoin is the first decentralized digital currency, that is, the first currency that does not need a central bank or monetary administrator. Normally, the Central Bank is responsible for modifying the supply of a currency and supporting it. In the case of bitcoin, transactions are made without the need for an intermediary and are verified using blockchain technology. Since there is no intermediary, users who own bitcoins are anonymous. This means that there is no record of who has bitcoins and what is done with this coin.


So, is it good or bad that bitcoins exist?

The answer to this question is complex due to the advantages and disadvantages of the coin. Thanks to bitcoins and other cryptocurrencies, it is possible to move money without borders, without costs and instantly, which is positive for users. The use of this type of currency makes it much more efficient to make investments, save, consume and carry out any other financial or real transaction. However, due to the anonymity of the users, this currency has been used largely to carry out illegal operations such as the purchase of weapons and drugs. Although the way this currency is used remains to be regulated, it may be the next step in the development of the financial industry.

Do I buy bitcoins today or not?

To answer this question, we can analyze a simple fact. Today, it is very difficult for aperson accept a salary in bitcoins or get into debt in bitcoins. The main reason is the high volatility of this currency, which is due to the holders of bitcoins. Due to its high popularity, it is likely that the majority of investors who have bought the currency have not done so to carry out transactions but to speculate with the exchange rate. As long as the main holders are speculators, the volatility of the currency will remain high. The million-dollar question, how far are we from the currency ceasing to be dominated by speculators? From our point of view, due to the high visibility of the currency, we may not be close to that point yet. However, it is important to be aware of changes in currency volatility when deciding whether to invest or not.