Bitcoin, described as a cryptocurrency, is a virtual currency or a digital currency. It is a type of money that is completely virtual. Each Bitcoin is a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. Bitcoins can be sent to your digital wallet and can be sent to other people. Each single transaction is recorded in a public list called a blockchain. Bitcoins are valuable because people are willing to exchange them for real goods and services as well as cash.
The performance of bitcoin, as a currency and investment, has attracted traditional and institutional investors. Listed below are the benefits of investing in Bitcoin.
- Bitcoin is one of the most liquid investment assets because of worldwide establishment of trading platforms, exchanges and online brokerages. Bitcoin can be easily trade for cash or assets, like gold, instantly with very low fees.
- Bitcoin is immune to inflation since it is not regulated by world governments. The blockchain system is infinite; thus, no need to worry about cryptos losing their value.
- Bitcoin as a new unpredictable investment has wild swings in price and volatility creates an opportunity for massive gains.
- Bitcoin trading is minimalistic, buy or sell bitcoin from exchanges and place them in your digital wallets. Bitcoin transactions are instant.
Therefore, Bitcoin is classified as a high-risk, high-reward investment. The value of Bitcoins has gone up and down over the years since it was created in 2009. Bitcoin investment is not for the faint of heart investors.