Are you planning to invest in bitcoin? Then you need to know the basics, how to purchase bitcoins, and how you can secure them. As you know, the world relies heavily on the internet. That explains why Bitcoin, which is a digital currency, has become quite popular among investors. You should note that anyone can access bitcoin, and it offers a perfect opportunity to get into new assets.
The truth is that investing in bitcoin is not straightforward. Remember that you have to do adequate research to find out whether this can work for you. Some people find it funny that a single bitcoin is worth thousands of dollars.
They Are Scarce
If you consider gold as an example, it is limited in supply on earth. When new gold is mined, there is less gold left behind, and it is quite harder to find it. Considering its history as an acceptable medium of exchange, it is said to have a hedge against inflation. That is also the case with bitcoin. Ideally, there are only 21 million bitcoins, and with time, they are difficult to mine.
Bitcoins Are Useful
Other than being scarce, they are quite useful. That is because they provide a predictable and sound monetary policy that is easier to verify. In fact, its monetary policy is considered to be an important feature. You can see whenever new bitcoins have been created and the number of bitcoins currently in circulation.
You can send bitcoins from anywhere in the world. In fact, there is no bank that can close your account or block payments. That is because it is a censorship-resistant currency. Therefore, it makes cross border transactions possible. The same way the internet made access to information easy, the same way bitcoin will revolutionize the global economy and finance. By understanding the potential bitcoin has, you will appreciate the need to invest in it.
Bitcoin’s Price
You should note that there is no set bitcoin price. Ideally, the price is subject to demand and supply. Usually, the price of bitcoin is stated as the cost of one bitcoin. Nevertheless, you can exchange any given amount and even purchase less than a single bitcoin.
Like any other investment, you need to determine the right time to buy bitcoin. Remember that the value of bitcoin increases quickly and then, followed by a steady downfall before it can stabilize. Since it is a global currency, it is less affected by your country’s financial stability or situation.