Bitcoin has been around for over a decade, but many people are confused about what Bitcoin really is. Some believe that BTC is the currency of the future and will replace today’s fiat currencies. Some don’t yet trust it!
If you haven’t bought crypto money before, at least you’ve heard of Bitcoin (BTC). You may have heard that Elon Musk recently purchased $ 1.5 billion worth of Bitcoin from Tesla and further increased the value of Bitcoin.
So What Exactly Is BitCoin?
The most basic explanation is that Bitcoin is an electronic currency. It is deposited online, you cannot physically hold it. However, its value grew faster than any other commodity known to man.
Like any currency, its value increases or decreases every day. Some perceive BTC as gambling and compare it to gambling. Others who take it seriously and invest, see it as a way to get rich and the stock market of the new age. There are also those who invest and randomly make a lot of money when the value is minimal.
Bitcoin was worth $ 0.1 in 2010. You could buy about 100 BTC for $ 10 in those days. The current value of 100 BitCoins is approximately 5600000 (five million six hundred thousand dollars)! Isn’t it interesting?
When did Bitcoin first come out?
The first talk about Bitcoin or Cryptocurrency was in 2008. The Bitcoin white paper is a well-known document that has been quite clearly published. While consumers can still remain anonymous when purchasing Bitcoin, transactions can be viewed by anyone. Each transaction has its own contract to save its history. So you can keep track of when any cryptocurrency was first created and when and how much its value has changed over time.
The concept of this modernized coin was based on a blockchain. These are interconnected blocks of information. Thanks to the sophisticated technology that links the chain, information cannot be changed or manipulated, making illegal transactions virtually impossible.
Of course, like everything you invest in, there are some risks as well. Your wallet, an online account, is electronic and protected with codes and passwords that would be difficult to access if you forget or lose it. Those who forget or lose their wallet details can lose all their assets. There are also scammers in the crypto world.
Bitcoin went public in 2009. Since this digital currency started gaining popularity, thousands of cryptocurrencies have been created. As of January 2021, there are over four THOUSAND different cryptocurrencies to invest in. Any non-Bitcoin coin is commonly known as a “sub coin” or “shitcoin” because Bitcoin was the first. Some of the other popular cryptocurrencies are Ethereum (ETH), Chainlink (LINK), Polkadot (DOT) and Litecoin (LTC).
When Bitcoin first hit the market, it was worth $ 0.0008 each. Those who bought it when it was first created, invested in Bitcoin are now almost multi-millionaires!
Is Bitcoin Safe?
In some ways, buying Bitcoin is like buying another currency. You should always keep in mind that its price rises and falls faster compared to other currencies. What makes Bitcoin different from traditional investments is that you either keep your account yourself or rely on a third party to do so. If you keep them yourself, you risk not storing them properly and losing them forever.
For example, if someone robs the bank where you deposit your money, the state will compensate your loss through something called the Deposit Insurance Fund. As a bank customer, there is no risk of your money being stolen. However, Bitcoin is different. Bitcoin is inherently limited in supply (only 21 million will exist). If the crypto financial institution you work with is attacked, it is a mystery how much of your losses will be covered. Binance was hacked in 2019 and covered the losses of its customers. Hackers attacking Binance servers in 2019 stole 7,000 BitCoins worth $ 40,000. However, the company said it would pay exactly “fully” and that no user’s funds would be affected, and it did. Keep in mind, though, that Binance has no legal obligation to do this.
Is It Worth Investing In A Cryptocurrency In 2021?
Some major brands and chain stores have already switched to cryptocurrency by accepting digital currency to receive payments. Some companies have started offering Bitcoin debit cards. Jamie Dimon, Chairman and CEO of JPMorgan, the powerhouse of Wall Street Banking, described Bitcoin as a fraud, but in September 2017 he turned back on his word and announced the launch of “JPM Coin” for commercial use using blockchain technology. .
Microsoft and Wikileaks have apparently also started accepting Bitcoin. Luxury auto and fast food outlets around the world have also begun accepting crypto payments.
When Is The Best Time To Buy Bitcoin?
As with any market, nothing is certain. Since its launch, Bitcoin has generally appreciated very rapidly, followed by a slow, steady decline until it stabilized.