The exceptional surge of 20% in last week amazed us. Although indicators still show the possibility of it having a downward trend, after that impressive surge of 20% during one day. Bitcoin (BTC) cryptocurrency is now about $9,000. It seems obvious that after the halving which is almost 2 weeks from now, most probably Bitcoin is going to have its next surge. The next two weeks might be a turning point for Bitcoin. Since it hit $14,000 in June 2019, it needs to have an explosive move to turn back into an upward trend.
Is Investing In Bitcoin Risky?
The answer to the above question is yes since this cryptocurrency was not originally designed to be an equity investment as no shares were issued. The rapid rise it got in May and November of the years 2011 and 2013 respectively, caused people to be drawn to investing in the bitcoin which was why they purchased it as a means of investment. On the one hand, Bitcoin is not backed by a strong history. On the other hand, its concept of virtual currency is novel. It is still viewed as an experiment, although its popularity is increasing as its importance which can decrease the risk. This fact seems worth mentioning that despite being one of the pioneers in digital currencies as well as being in the trend for 11 years, Bitcoin is still in its developmental phase. This means it has the highest-risk, although this risk could lead to the highest-return investment possible. Since these types of currencies are a rival to government currency, some governments banned it and others are intruding with rules and regulations. The mentioned government actions plus the lack of uniform regulations about the bitcoins makes us question their longevity.
More About Bitcoin
Bitcoin is an 11-year-old digital currency. The original idea was presented by Satoshi Nakamoto, whose identity is a mystery since he is using a pseudonym. Bitcoin is operated by a decentralized authority with the promise of lower transaction fees comparing to the traditional online payment mechanism. It doesn’t have physical currency and it is available through clouds only. Bitcoin charts are highly popular, even though Bitcoin is not a legal tender. Bitcoin was the starting point and the inspiration for Altcoins. This Cryptocurrency provides the users with public and private keys which are complicated as well as long, through an encryption algorithm. It is also using peer-to-peer technology that enables instant payment. Bitcoin can be used as means of payment.
For an instant, you can put a sign on your store saying Bitcoin is accepted. The costumers can pay you using the wallet address accessible through QR code.
Bitcoin mining is the process of solving computationally complicated puzzles to discover a new block which will lead to realizing bitcoin into the circulation. The outcome of this process is a new block that can be added to the Blockchain and adds a verified record across the Blockchain. The miners receive a reward for doing so in Bitcoin form.
To sum up
Bitcoin is the pioneer of digital currency. Although has gone through some rough patches, recently has experienced a surge. This digital currency and many others have yet to achieve to change the perspectives as governments are against them. The risk is still felt while dealing with them.