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Bitcoin came out to be the first successful decentralised Cryptocurrency. It was launched in 2009 by a mysterious man called Satoshi Nakamoto.
Cryptocurrency refers to a group of digital currencies and assets whereby the transactions are secured and verified using cryptography. The technology that supports Bitcoin and other cryptocurrencies are known as blockchain technology.
Bitcoin can be divided into smaller units called satoshis and can be used to make payments. While Bitcoin's primary purpose was to be used as currency in the market, it has become more popular as an asset in recent years.
In fact, investors call it 'Bitcoin Digital Gold' because of its value storing capacities. Furthermore, due to the number of available Bitcoins circulating in the market being capped, it has become an excellent investment option. You can invest in Bitcoin with AQRU, an innovative investment platform, and crypto exchange, that allows you to earn high yields on your crypto assets.
What Is Bitcoin?
As we have already said, Bitcoin is the firstborn in the cryptocurrency universe and is a type of currency that is completely digital. You can even consider it an online version of the cash you use.
You can use Bitcoin to buy products and services. However, it is still a relatively new currency, so most shops still don't accept Bitcoin as an official payment method. Unfortunately, there are only a few selected shops where you can use Bitcoin.
How Does Bitcoin Work?
To understand how Bitcoin works, you must know that three components make up a completely decentralised payment system.
- The Bitcoin Network.
- The Bitcoin Currency.
- The Bitcoin Blockchain.
Bitcoin runs on a peer-to-peer network where intermediaries are not required to authenticate transactions. Instead, users can connect to their computer directly and download the Bitcoin public ledger to see the entire transaction history. This public ledger technology is known as the blockchain.
Blockchain technology allows users to verify their transactions, store, and order in an immutable and transparent way.
Whenever a new transaction is made, the information is updated to the public ledger and shared with every network member. Just think of the Blockchain network as an open Google document that updates automatically when a member makes any changes.
Why Do People Want Bitcoin?
Some people like the fact that Bitcoin is not controlled by any government entity or bank. And because of that, people can spend their Bitcoin anonymously. Yes, all the transactions are recorded, but nobody will know which account was yours unless you tell them.
Furthermore, Bitcoin is also an excellent investment asset helping thousands of people earn more than the average income per annum.
Bitcoin has become a career option for aspiring investors. But, yes, the market is still new, and there is a lot to learn before you jump into Bitcoin investing!
But, once you are in the centre of turmoil, you will know it is literally a Gold mine of earning opportunities.
Is Bitcoin Secure?
Every transaction is recorded using a public ledger. Hence, it is difficult to make a copy of Bitcoin and make fake ones. This makes them a safe investment option.
While investing in Bitcoin is an exciting thing to do in the modern age, you must consider a few things.
- Never invest more than what you are willing to lose.
- Conduct your own research, don't listen to others.
- Never act based on FOMO (fear of missing out).
- Safeguard your keys.
Before you invest in Bitcoin, you must know its risks first. This will help you prepare yourself for any uncertain events.
The Bottom Line
It is hard to say where Bitcoin will be in the next five or ten years. Over the last decade, Bitcoin has certainly made itself one of the most popular digital assets and established itself as a currency.
Perhaps this is because of the question raised on its scalability and the ability to handle a growing number of transactions. Without these things, it is really hard to tell whether or not Bitcoin will become a fully-fledged currency.
That being said, you can't neglect its impact on the investment industry. In our view, while the adoption will continue to grow at a steady rate, Bitcoin will all grow as an investment portfolio.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.