5 reasons why you should invest in Bitcoin and everything you need to know about it

 

What is Bitcoin?

Bitcoin is a cryptocurrency that uses peer-to-peer technology to operate with no central authority or banks. The mysterious thing about bitcoin is that its design is public, no one owns or controls bitcoin, it is available for everyone and anyone to use. Thanks to its unique and sui generis properties, it drives in a lot of users. There are many perks while using bitcoin, some of them include fast peer-to-peer transactions, worldwide payment and low processing fees. Bitcoin facilitates instant transactions. 

It is very problematic to categorize and classify bitcoin. Is it a payment network, a type of currency or a store of value?

The definition of bitcoin is simple. It is a software. It is a digital spectacle. It is the most successful of attempts to create virtual currency using cryptography. It is a common household term, yet it is a relatively unknown topic.  Bitcoin is a decentralized system which records transactions in a distributed ledger called a blockchain.

How does Bitcoin work?

Conglomerate Computer rigs and run by bitcoin miners to decipher arduous puzzles in an effort to confirm groups of transactions called blocks; upon success, these blocks are added to the blockchain record and the miners are rewarded with a small number of bitcoins.Other participants in the Bitcoin market can buy or sell tokens through cryptocurrency exchanges or peer-to-peer.The Bitcoin ledger is protected against fraud via a trustless system; Bitcoin exchanges also work to defend themselves against potential theft, but high-profile thefts have occurred.

5 Reasons why you should invest in bitcoin

Despite the fact that Bitcoin is arguably predestined to be the future currency of the world, there are countless other reasons proving why you should invest in it, and how you could benefit from it. In this blog I will explain the 5 main reasons on why you should invest.

1)You have the potential to become an overnight millionaire! 

Yes you heard that right, this year alone countless people have made million from bitcoin overnight. Bitcoin this year broke its previous record and reached an all time high. Picture this, a person who bought bitcoins on, say the 10th of may 2019, bought it at a price of seven thousand two hundred and twenty three dollars ($7223) for one bitcoin, just two years later on the very same day (10th may 2021) he could sell the very same bitcoins at a price of a whooping fifty five thousand eight hundred and four dollars ( $55,804) for just one bitcoin. Bitcoin in recent times has seen an enormous growth, it broke the all time record this year touching the 63,000 dollar mark. During the initial years of bitcoin, the value of 1 bitcoin wasn’t even a dollar, in early 2011,Bitcoin first touched the 1 dollar mark. Since then the growth has been rapid, over the next 9 years the value of the bitcoin shot from 1 dollar to around 63,000 dollars for each bitcoin. Now just imagine if you had invested 1000 dollars in bitcoin back then your bitcoins would now be worth around a whopping 50 million dollars! It's never too late to start investing. It's now almost as valuable as gold.

2) The world could soon run out of new Bitcoins!

Yes, that's right, Bitcoins are not created or made, they are mined. There are advanced computers designed for the sole purpose of mining Bitcoins, they are designed to solve extremely complicated mathematical problems and equations to mine each Bitcoin. The creators or creator of Bitcoin, Satoshi Nakamoto, created 21 million bitcoins which could be mined out of this about 18.5 million (88 percent) of them have already been mined and are now used in the market. After all 21 million of them are mined, which is not too far away, there will be no new bitcoins left to be mined. Miners then will charge to process bitcoin transactions. It's still not too late to get started in investing and trading bitcoins, so what are u waiting for?

3) It is the future currency 

One of the main reasons why the value of bitcoin is skyrocketing is because of a supply and demand issue which translates to the fact that it's getting more and more valuable each time. The fact that several industries and enterprises are now starting to accept Bitcoin as a mode of payment and the number of investors are drastically increasing, all point to the fact that Bitcoin would eventually become a universal mode of payment. And the only way to make the most of it is through investing as early as you can to stay ahead of the crowd. I for one strongly believe that once all 21 million of them are mined, there would be a mad rush, where people would be desperate to buy Bitcoins and the best way to capitalize on that opportunity would be to invest today and watch the show as more and more people scram  for it day after day.

4) Bitcoin is extremely safe and incredibly transparent

Bitcoin works using blockchain technology, where all the transactions get stored in a block instead of the traditional database, after a certain number of transactions the block gets full it gets attached with a string to the previous block (virtually of course). This forms a blockchain of transactions and once a block gets attached to the blockchain it cannot be changed, hence making Bitcoin transactions irreversible. This Blockchain of transactions is openly available to the public, making the users less likely to be cheated. To make changes to the blockchain, a majority consensus of the users must be reached for any decision to be made to make the whole concept even more free and fair. Even if one of the users of bitcoin makes an alteration to the transactions the other computers or nodes ( computers part of the bitcoin network) would cross reference with it and change it back. Bitcoin has also taken measures to prevent ‘Double spending’ which is also a kind of fraud that occurs in Bitcoin.

5) It is better than its rivals

Bitcoin today is the go-to cryptocurrency for most people around the globe. One of the main reasons why it stands out as compared to other cryptocurrencies is because of  its market cap. Market cap is calculated by multiplying the total Bitcoins in the market with the cost per Bitcoin. Bitcoin beats all its rivals with a current market cap of 816 billion USD. It reached an all time high this year of nearly 1.1 trillion USD, that is 1100 billion USD. Bitcoin is highly decentralized and their servers cannot be matched in terms of speed. You can transfer Bitcoins within seconds from one user to the other. I also feel that since Bitcoin is the most used in the crypto world, it is most likely to be accepted in various sectors before other cryptocurrencies. So say, a cryptocurrency does become accepted as a universal mode of payment, Bitcoin is  likely to be that cryptocurrency.