Bitcoin is a big deal these days in a world of countless cryptocurrencies. Wondering if you should invest in Bitcoin? Here are a few things you should know before you go on to buy Bitcoins (BTC):
Bitcoins Are Limited In Supply
Unlike the paper money that will keep on being issued by the central banks, bitcoins are limited in supply. They are more like precious metals that can’t be created once they are exhausted. As per the bitcoin generation algorithm, only 21 million bitcoins can be mined. 17 million of these have already been mined and are in circulation. With only 4 million bitcoins to be mined, the bitcoin market is currently in the state of frenzy. Going further there is going to be a huge reduction in the number of new bitcoins that will be created. This limited supply is going to increase the value of bitcoins by a great extent for investments.
Bitcoins Have A Sound Monetary Policy
This is one of the most important features of bitcoin. At any point of time, one can see how many bitcoins have been mined and how many of them are in circulation. The blockchain ledgers record all accounts of BTC wallet and exchange transfers.
Bitcoins Have No Regulations
They can be sent freely from anywhere to any part of the world without any worries of payment blocks or account closures. With cross border payments made so easy through Bitcoins, people have found a way to escape government monetary policies and carry out their illegal activities.
There Is No Official Bitcoin Price
The price of the Bitcoin is determined by the amount that people are willing to pay, to buy them. There is no way of predicting what the price of Bitcoins would be, at any point of time. It is not affected by financial situation or stability of any country. It cannot be influenced or controlled by any government. The global scenario is the one your focus should be on, if you are trying to invest in Bitcoins. You can make use of a few tools such as Crypto Watch and Bitcoin Wisdom to analyze and understand the price history of Bitcoins.
Bitcoins Can Be Bought From Anywhere
Different kinds of bitcoins are available in different parts of the world. Developed countries such as USA, UK, Singapore, and Canada generally offer more options and a higher level of liquidity when it comes to bitcoins. However, there are some countries where the technology remains completely unknown.
Bitcoin Is Totally Reliant On Technology
Bitcoin is virtual currency that can be traded through smart wallets. Despite the attempts to make the technology secure, there are many cyber threats, hacker attacks, and frauds that have made many lose a lot of money. They are very easy to steal and very tough to trace. Fake exchanges make it even more difficult to have a control on your Bitcoin investments.
Crypto Conclusion
Understanding the working of Bitcoin is very important before you start investing your money. Although 10 years have passed since its introduction, the technology is still very new and will take a lot of time to evolve into a solid state. Visit your local Bitcoin crypto ATM machine to understand the Bitcoin costs and benefits. Do your research and consult a few professionals before you get into any kind of action.
