If your friends, family members and colleagues keep talking about their Bitcoin investments and you’re curious about making a profit investing in Bitcoin, simply continue reading to discover a simple guide to understanding the recent hype around Bitcoin.
What is Bitcoin: A guide to understanding the hype around Bitcoin
First and foremost Bitcoin is a form of digital currency, called a cryptocurrency, which can be used to purchase goods and services in some parts of the world. As a form of currency Bitcoin was so successful as it allowed individuals around the world to have anonymity when it came to their money. As Bitcoin can’t be tracked by banks or governments. However most individuals are interested in Bitcoin as an investment. As it’s possible to make a profit by purchasing and holding on to Bitcoin.
Are there any other advantages of using Bitcoin?
Yes, Bitcoin was also designed to be one of the world’s very first global currencies. As Bitcoin can be used to purchase goods and services online as well as in a wide variety of countries without having to worry about converting currencies. As one Bitcoin holds the same value in the USA as it does in Japan, South Africa, Australia and France. So if you’d like to be able to transfer money easily to friends and family members or vendors overseas, you’ll love how convenient it is to transfer Bitcoin across countries and borders.
Why is Bitcoin a desirable asset class?
While you may understand that many people choose to invest in Bitcoin, you may not be clear about why so many people are itching to get their hands on more Bitcoin. The primary reason why Bitcoin is such as sought after asset class is that Bitcoin is a finite resource, just like natural resources such as silver and gold. Which means that theoretically over time as Bitcoin becomes harder to acquire, the price of Bitcoin will continue to increase.
Bitcoins were released over time and were digitally mined. The exact number of Bitcoins which can be mined is 21 million Bitcoins. After this point the only Bitcoins which will be able to be purchased will be traded from one owner to the next. Which actually makes Bitcoin a rarer commodity than silver and gold. It’s for this reason that Bitcoin is such a popular investment asset.
How many Bitcoins have been mined:
As of the start of 2020 over 18 million Bitcoins have been successfully mined. Which means that there’s only around 3 million more Bitcoins which can be mined. Once these Bitcoins have been mined, expect Bitcoin prices to skyrocket as a direct result.
Are there any copycat cryptocurrencies:
Yes, while Bitcoin was the first digital currency to make headlines around the world, since the release of Bitcoin there have been new copycat cryptocurrencies to hit the market. However none of Bitcoin’s competitor’s have achieved the same level of international success as Bitcoin.
So if you’re interested in investing in a cryptocurrency for the first time, it’s well worth investing in Bitcoin. Especially as Bitcoin is likely to increase in value during the next 12 months.