Bitcoin is one of the cryptocurrencies. In recent years, it has experienced, like other immaterial currencies, remarkable growth. The value of bitcoin, constantly rising, explains its success with many investors, who find an obvious interest in betting on this new currency.
What is bitcoin?
Bitcoin is a currency, but you can’t hold it in your hand. This is a virtual currency, the manifestation of which is limited to numbers on a computer.
To send or receive bitcoins, it is necessary, thanks to specific software, to create suitable electronic addresses. Bitcoin exchanges are done peer to peer, that is to say in a decentralized way.
Currency transfers are recorded in the « blockchain », a kind of digital ledger, which records the interactions between bitcoin holders. This giant database therefore contains the history of all transactions. In addition, sophisticated technology makes it possible to ensure the security of a system which is not, however, controlled by any regulatory authority.
A constantly growing value
If you are looking to invest your money, you can, by taking certain precautions, invest in this intangible currency that is bitcoin. Indeed, it has the wind in its sails and its value continues to grow.
According to some figures, it would have even been multiplied by fifteen in less than a year. Such a lightning progression can only arouse the interest of investors who can expect, by betting on this currency, extraordinary returns on investment. You can also find all the information relating to the bitcoin market on the TheCoinTribune website. This site is full of news on crypto-currencies and will be very useful to you if you are new to this medium.
One of the reasons for this growing favor is the growing number of people who are interested in this virtual currency. This interest is explained by the great flexibility of this currency, the speed and low cost of money transfers, or the possibility of sending this currency wherever you want. Other advantages, which relate in particular to the transparency or security of this system, may also account for the enthusiasm aroused by this currency.
The dizzying increase in the value of bitcoins is also explained by their limited number. Indeed, the total sum of these currencies has been set at a specific amount, which cannot be exceeded. Under these conditions, the simple application of the law of supply and demand should increase the value of bitcoins even more.
Buy bitcoins safely
This clear upward trend in bitcoins can therefore encourage you to acquire them. With, as a result, the prospect of considerable capital gains. For this, it is best to use brokers specialized in the cryptocurrency market. In this regard, online brokerage platforms offer you their services and allow you to make significant profits.
This solution is all the more interesting since, for this type of operation, the exchange and transaction costs are low. If you use the services of a broker, however, some precautions should be taken. Keeping large quantities of bitcoins on behalf of their customers, they are often targeted by computer attacks aimed at stealing them. Hackers have all the less scruples about taking action because, in the event of theft, bitcoin holders have no legal recourse.
It is therefore advisable to choose carefully the broker to whom you will entrust your bitcoins. It is perhaps more prudent to keep them in a kind of virtual wallet, called a « wallett ». Provided, however, that your computer itself is not vulnerable to computer attacks.
Read also: How to choose your online broker to invest?
A safe haven currency
This character of bitcoin represents another serious reason to invest in this currency. Indeed, bitcoin was born from the financial crisis, known as subprime, which appeared in 2008 in the United States.
This situation has highlighted the fragility of a financial system subject to economic fluctuations and the decisions of regulatory authorities. It also revealed the vulnerability of banks, whose eventual bankruptcy, with all its consequences for customers, no longer seemed like a theoretical hypothesis.
It is in this context that bitcoin has emerged as a real safe haven currency. Indeed, this immaterial currency is not supervised by any central authority, which could influence its value. The perfectly decentralized organization of this currency, and its independence from banks and any financial authority, give it great stability in this respect and create a feeling of security among its users.
Pushing the reasoning to the extreme, some believe that in the event of a major financial crisis, marked by cascading bank failures, bitcoin holders would be the only ones to pull out of the game and still have significant resources.
Such advantages can only encourage, provided you take certain precautions, to invest your money in bitcoin.
Also Read: Which Cryptocurrencies Are Worth Your Investment In 2019?