Bitcoin is an online digital currency, just like the US dollar or the British pound, but there are some exceptions. Satoshi Nakamoto launched Bitcoin in 2009. It uses a peer-to-peer payment system that does not have any intermediaries and can safely transfer goods between any two people on the planet. It is associated with a huge computer network, and the currency unit of the Bitcoin system (appropriately called Bitcoin) can be obtained simply by joining the huge network. Bitcoin provides a fast, cheap, and secure transaction option, but few people are willing to change jobs for this. Therefore, the one million dollar question still exists, is Bitcoin a safe investment?
Bitcoin is only a few years old. This is an interesting creation. It has been sought after by many people, and there are records showing that it has been ranked among the top financial charts. Its popularity has surpassed and has led some top companies like Virgin Galactic to see it as an acceptable source of payment. Bitcoin prices have risen by as much as 10% and continue to dominate the market, which makes many people interested in investing in Bitcoin.
Another characteristic of Bitcoin is that it does not have a central bank and the central government does not control it. It is a global currency. Behind its creation and existence is a complicated and annoying mathematical algorithm that enables it to cover up unfortunate events related to the government. There will be no cases of political turmoil and government absurdity in the cryptocurrency system, which put the economy into shame and led to a significant reduction in investment in Bitcoin over the years. This creates safe and friendly investment opportunities with low inflation risk.
With amazing room for upside, cryptocurrency also has a downward trend. As mentioned earlier, this matter is still taking the first step. With that comes huge uncertainty. The price of Bitcoin fluctuates greatly; it is currently increasing sharply and can fluctuate at a rate of 30% to 40% within a month. The world is still surprised by its appearance, and there are almost no Bitcoin holders and Bitcoin. This leads to unanswerable questions and indifferent fear, because investing in new unpredictable “gold mines” can have devastating effects. Its novelty has led to a lack of regulations and scared away potential investors.
The mystery surrounding the Bitcoin system is the main factor to consider. Anything can happen, and everyone involved in the Bitcoin market is on high alert. In December 2013, China cancelled the use of Bitcoin, which caused its value to drop sharply from US$1,240 to US$576 in just three weeks. The programmers also determined the function of this global currency, and many people questioned the idea of risking financial planning for certain groups of geeks. This prevents many people from entering the system and greatly increases the risk of Bitcoin investment.