It is the billion-dollar question that many people have been asking tentatively since the start of the bitcoin boom: Should I invest in bitcoin? The cryptocurrency took the world by storm a couple of years ago when the values skyrocketed. Things have gone a bit quieter on that front now as the value gradually moved back down.
But, many people who had got on board with the currency early enough, made a substantial sum of money. It left many people with an interest in trading and investing wondering if it was something that they should be buying into. But, because it was like no other financial product before it, the question mark still hangs over the heads of many would-be investors.
What Even Is Bitcoin?
Bitcoin is the most popular of over two thousand different cryptocurrencies. Put in the most basic terms possible, bitcoin is a digital currency that is not regulated or controlled by any central bank. This means that it is free from political influence. The currencies are passed through an anonymized and highly secure ledger called the blockchain. The blockchain records every single bitcoin transaction that takes place. This makes trading bitcoin more secure than standard financial transactions.
Unlike major currencies, bitcoin is not backed by any kind of gold standard. With traditional currencies, the notion is that there is a gold reserve that the notes and coins are representative of. Cryptocurrency does away with this, but there can only ever be a finite amount of Bitcoins that will ever be in circulation.
Who Can Buy Into Bitcoin?
Although it can be a bit complicated to learn how bitcoin works, it is possible for anyone to purchase bitcoin. You will need to set yourself up a wallet and find a trading site or service that you can trust. Check out this review to learn more about a trading system called the Bitcoin Revolution and the pros and cons of it.
What Else Is Out There?
As well as bitcoin, there are over 2000 other different currencies available. Etherium is another very popular altcoin. There will no doubt be speculations about whether any of these alternatives will ever find their way to seeing the type of growth witnessed during the bitcoin highs of 2017, but what is for sure is that cryptocurrencies will not be going away anytime soon.
Facebook has announced its own involvement in developing the Libra currency. If and when this gets released it could prove to be huge. When you consider Facebook owns Instagram and Watsapp, they have access to a staggering proportion of the world’s population.
Facebook will no doubt seek to allow Libra spending through its site, which will help to increase the currency’s popularity. Although the complexities of the currencies and the lack of government involvement and regulation has caused some concern in political circles. Time will tell what the future holds for cryptocurrency, but this disruptive technology has certainly changed the way that money is thought of.