What Is Bitcoin?
Bitcoin is a decentralized, peer-to-peer cryptocurrency system designed to allow online users to process transactions through digital units of exchange called bitcoins (BTC).
By the Numbers
237%. Bitcoin’s return since its 12-month low in March, as of Nov. 18
$510 billion. Global market capitalization for cryptocurrencies
26 million. Number of merchants in PayPal network accepting cryptocurrencies.
Started in 2009 by a mysterious entity named Satoshi Nakamoto, the Bitcoin network has come to dominate and even define the cryptocurrency space, spawning a legion of altcoin followers and representing for many users an alternative to government flat currencies like the U.S. dollar or the euro or pure commodity currencies like gold or silver coins.
Insiderkk does not give investment advice, however we cannot ignore the growth in demand and investment associated with digital currencies.
Bitcoin is seizing the spotlight from gold as a hedge against risks such as further dollar weakness or a pick-up in inflation.
The cryptocurrency’s approximately 150% jump in 2020 puts the digital coin’s price relative to gold at the highest in almost three years.
Crypto prices have staged a surprising rebound to highs not reached since 2017, giving life back to circa 150 crypto hedge funds that survived Bitcoin’s painful near-75% crash.
However as with all investments, there are risks.
Pro. Massive potential for returns.
One of the statistics that makes everyone consider investing in cryptocurrency is that $1,000 invested in Bitcoin in 2013 would be worth over $400,000 today.
Con. Potential to crash in value again as in 2017 and further pressure from international regulators to centralise crypto exchanges. Cryptocurrencies are not regulated, and their price is determined by the supply and demand of their market.
The security risks around Bitcoin are the currency’s single highest drawback and are worthy of special consideration.
Remember Bitcoin reached an all-time high of $19,511 in December 2017.
That said, the debate goes on with many diverse views, some investors and analysts are talking of a massive increase in value, others give little credence to its long-term worth.
If you decide to invest, Insiderkk recommends an established and reputable partner.
Founded in 2013, Coinmama now offer services to more than 182 countries worldwide, and is considered one of the easiest, fastest, and safest way to buy bitcoin and ether using a credit or debit card.