Bitcoins (₿) are mined, traded, invested, and accepted as payment by people worldwide. Many even claim that Bitcoin is the currency of the future.

What is Bitcoin?

Bitcoin is a decentralized digital currency, without a central bank, or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin provides some independence from financial institutions and the government by being decentralized. This means that there is no institution governing, manipulating the price of, or holding Bitcoin. It also offers lower transaction fees when you transfer internationally. The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.

Long-term investing in Bitcoin

Due to its widespread popularity, Bitcoin is the most widely known cryptocurrency, benefiting from the network effect — more people want to own Bitcoin since the majority owns it. Some investors consider Bitcoin to be “digital gold,” however, it is also capable of being used as a digital currency.

As a result of the fixed supply, Bitcoin is believed to have gained value over the long term, unlike fiat currencies such as the U.S. dollar and the Japanese yen. It is estimated that the supply of Bitcoin will never exceed 21 million coins, compared with currencies controlled by central banks. Fiat currencies continue to depreciate, which will increase the value of Bitcoin.

Many Bitcoin enthusiasts believe Bitcoin can be used widely as digital cash in the long run, and will thus become a truly global currency.

Bitcoin has the following important features:

• The blockchain technology behind cryptocurrencies like bitcoin allows data to be sent securely in cyberspace via the payment method
• There is a mining process for every bitcoin
• The total number of bitcoins that can be mined totals 21 million
• As cryptocurrencies cannot be regulated by centralized authorities, such as governments or central banks, they are “decentralized.”

Benefits of investing in Bitcoin

• Bitcoin has had the best ROI (Return On Investment) in the history of investments, and especially in the 2010s. In 9 years, from 2011 to 2020, Bitcoin had 9’650’000% ROI, which is astronomical. The average yearly ROI has been around 600%.
• Since Bitcoin is by default anonymous, investors don’t have to use banks, register or declare it, investors do not need to pay taxes on anything other than personal profit.
• With Bitcoin, investors own its own funds, and no one can take them away. Unlike with FIAT, banks can’t freeze your account and government can’t confiscate your funds. Bitcoin is the most secure asset.
• Because the total amount and the creation speed of Bitcoins are set and cannot be changed the government or any other party cannot print Bitcoin for free as it does with FIAT money.

Worldwide, more people are investing in Bitcoin because it provides a global, secure, and digital currency that is very convenient for everyone.