You have probably been seeing, reading and hearing about Bitcoin. But do you have the slightest idea what it exactly is? Basically, Bitcoin is a form of digital currency. And there are many of them. Digital Currency is also referred to as a cryptocurrency.
This term was first used by an anonymous individual during the financial crisis back in 2008.
Much like Traditional Currencies but it’s all Digital
Digital currency account is much like a checking account where it can be viewed online. Simply put, it is a digital currency you can view but you cannot touch. In regards to Bitcoin, it has no physical representation since all money exists in digital form.
No one’s regulating this currency and in the same manner, the network isn’t managed by any known entities while the tokens are being exchanged between people via sophisticated software system. In other words, the entire system is decentralized and it’s operated by a computer network.
Know what You can and can’t Do
It is vital to be aware of the fact that you cannot use these tokens for paying the usual stuff you buy in the market. Truth is, Bitcoin and other cryptocurrencies can only be used to stores online or sell it to other people. On the other hand, there is an increasing number of companies that are starting to accept Bitcoin as well as other digital currencies known to man. Soon, even the best credit card in Singapore or in any part of the world could be using crypto technology.
To give you an example, Overstock and Expedia are accepting it from their customers. Among the major features of this currency is that the entire transaction is untraceable and private. That is one of the numerous reasons why most prefer this type of money than others.
Is it Smart to Invest in Bitcoins or other Cryptocurrencies?
With the immense popularity and usage of Bitcoin, you may be wondering whether to start investing your money into it or not. Well just like when investing in stocks of other companies, this is something that will require proper judgment. Otherwise, you may just regret your decision. So before pushing through with your decision, it is essential to learn about the risks that are associated with the system.
Among the risks that you should not take lightly is volatility. This means that the value of Bitcoin can fluctuate within a day. Truth is, the rise and fall in value could be in the 30 percent region. So don’t make any hasty decisions. Think of your move first.