The first cryptocurrency to ever exist is bitcoin. It was developed in 2008 and its creator is anonymous. The core value of bitcoin has skyrocketed over the past couple of years and it has gained quite a lot of popularity over the decade. Listed below are 10 things you need to know about Bitcoins and how to get bitcoins before you take the plunge:
Although there are many reasons why bitcoin may be a good option to invest your money into and increase it; there are certain things to be looked after before you make that investment.
The Supply Is Limited:
The number of bitcoins is limited to 21 million. This also means that no more bitcoins can be minted just because it is increasing in demand. In other words, the value of bitcoins is not expected to drop in the near future.
This is because no one can just go about minting them without a stop. There is a limit to their number, which also means that their value is bound to just go up.
The Surprising Truth About the Value of Bitcoin:
Recently, in the last few months of 2017, Bitcoins value reached as high as USD 10,000 per unit. It is also reported that there are around 16.7 million bitcoin units in circulation.
Owing to these numbers, the market capitalization of Bitcoin, i.e. $167,156,585,840 as reported on Nov. 28, 2017, is way higher than McDonald’s, Disney’s, or even IBM’s. Moreover, it also happens to be slightly higher than that of GE too.
Bitcoin Is the Most Stable and Reliable Cryptocurrency:
This is, perhaps, one of the most important things you need to know about Bitcoins.The good news is that bitcoin is the only cryptocurrency so far that is known to be reliable and stable than the rest. Its value has risen extremely high and unexpectedly over the last few years.
Bitcoin is still being experimented upon. Plenty of new features are being added to it, and the process is just becoming fancier.
There are quite a lot of complications that come with it; and hence any investment in bitcoins must not be done without proper guidance.
Many Fraudulent Means Are Adopted:
Where there is a possibility of acquiring a great deal of money, there is also big risk involved with fraud means. One of the most crucial things you need to know about Bitcoins is that it is important to beware of any means that may hamper with your investment in bitcoins.
Check before you fall for any fancy discount lest you want to fall prey to hackers and scammers. Any internet scams that claim to double your bitcoins or try to close a fake sale via email must be carefully dealt with.
Plenty of Risks Are Involved:
This may not seem to be true given that the value of bitcoins, among the unavoidable things you need to know about Bitcoins, has only risen and not come down in the past few years, but bitcoins are vulnerable to risks too.
Their value is quite prone to ups and downs as is that of every cryptocurrency and every investment in the financial market. It is best to consider the associated risks before making any investment in this direction.
Bitcoins Don’t Need A Third Party to Function:
Unlike fiat money which needs monetary banks and cards to function with, bitcoins do not need a third-party involvement.
This is one of the major benefits among the things you need to know about Bitcoins.It can pretty much just be transferred from one wallet to another by the means of internet. It doesn’t get easier than this.
Anonymousity With Bitcoins:
One of the advantages of the things you need to know about Bitcoinsis that is easy to hide your personal details on bitcoin transactions. The users’ name, email address, or even the residential address is impossible to be tracked down using their bitcoin transactions.
Save for a few loopholes, bitcoins can be completely relied upon and trustworthy to not let your personal details out on to the internet just like that.
Payments Are Safely Carried Out:
Bitcoin is a means of payment. It is a digital currency used to carry out transactions. But no matter how impossible it seems, any payment made by bitcoin cannot be returned.
Having said that, if the owner or the receiver of the payment decides otherwise, the payment can be returned. Additionally, for security reasons, bitcoin payments cannot be made if there is an error in the address. This is one of the best advantages of the things you need to know about Bitcoins.
Are Bitcoins Only An Illusion With No Real Value?
Not very long ago, the world-famous investor Mr. Warren Buffet had this to say about Bitcoins in an interview with CNBC: ‘This Bitcoin cryptocurrency is nothing but a mirage. One better stay away from it.’
He also went on to add that the inflated price of Bitcoin was nothing but a joke in his opinion. Billionaire Jamie Dimon also has an opinion that is in line with Warren Buffet’s.
However, other billionaire investors such as Mark Cuban are in favor of Bitcoins and are looking at it as a serious form of investment. Having said that, perhaps only time will tell if Bitcoin is to be trusted or not.
The Bitcoin Bubble:
True that this Bitcoin cryptocurrency has made some people millionaires and billionaires, but it is probably too late now for anyone else to join the group.
As is common knowledge, Bitcoin market prices are on the rise and, in the words of professional and experienced investors, ‘The Bitcoin bubble is not fully mature and can burst any minute.’
This is a soft way of putting that Bitcoins are bound to suffer a loss soon that will shake the entire world. The people who have benefited from it are in a good place, but there is no more room for anyone else to meet the same amazing fate through Bitcoins.
The Bitcoin market price is bound to fluctuate and, as mentioned before, is highly unstable. It must be kept in mind that bitcoin is highly unstable and that it is still in its experimental stage.
The fact that its value rose from pennies to thousands of dollars in the last few years is not proof enough that its value will continue to rise.
True that anyone can figure out how to get bitcoins, but there is always a risk involved in the investment. Do ample of research, seek professional guidance, and go ahead with investing in bitcoins only if you are willing to take a risk with your hard-earned money.