Whether you’re brand new to Bitcoin or have been following it as an investment since its inception, there’s plenty of noise around the cryptocurrency right now. Some people have made millions in profits, while others have lost all their money on it. It can be hard to decide what to do with your money when it comes to Bitcoin, so we’ve put together this quick guide on whether you should invest in Bitcoin based on the current market climate and some of the most common arguments in favor of investing in it.
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros—they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. It’s not easy to create Bitcoins, and there are strict rules about how many you can generate per year. However, that doesn’t stop people from generating them; over 100 billion have been made so far.
As of August 2017, you can buy bitcoins two ways: either using a Bitcoin exchange or with an online broker.If you are new to bitcoins, its preferable that you take help of an expert or someone who has a good grip of bitcoins. Tenjin AI Explorer strategy combines all trends of investing which includes investing in bitcoin too. The upside to this is that you get to invest in bitcoin without the hassles of doing research or tracking them round the clock.
Sometimes, we see an investment and assume it’s valuable simply because of its novelty. Although that certainly can be true—consider Beanie Babies or Pokemon cards—it’s not always a safe assumption. It’s true that there isn’t anything else like Bitcoin, but it also means that there is no precedent for what happens when a new form of currency hits critical mass.
According to Wired, there are at least four reasons why you shouldn’t invest in cryptocurrencies:
1.They don’t hold their value over time
2.They aren’t tied to a physical asset
3.They can be used for shady purposes like money laundering and drug trafficking
4.They’re generally not backed by anything other than a computer program. Cryptocurrencies are also highly volatile.
Before we answer whether you should invest in cryptocurrencies, let’s go over how they’re regulated. If a cryptocurrency is traded on an exchange and has no intrinsic value (like USD), then it falls under specific regulations for securities exchanges, depending on where it is based.
Cryptocurrencies have been a hot topic of conversation for investors and entrepreneurs since 2009, but they’re still not widely accepted by consumers. The total market cap of all cryptocurrencies is less than $200 billion, which is nothing compared to other markets such as real estate or gold. Therefore, cryptocurrencies aren’t mainstream yet.
If you’re interested in using bitcoin as a way to pay for goods and services, there are a number of sites that accept payments. Some of them require traditional currency, while others let you make payments using bitcoin only. However, don’t worry too much about where you can spend bitcoins—instead, focus on buying some! Read on to learn how you can buy bitcoins quickly and easily. There are two main ways to get your hands on bitcoin: purchasing them from an exchange or accepting them as payment for work or a product or service you sell
Decentralized currencies are often called digital cash, because they exist entirely as entries on decentralized networks. Transactions happen directly between users (peer to peer) rather than through a central server.
There are no middlemen taking a cut of transactions.
1. Decentralized currency networks function without third-party oversight; network members simply follow the rules of a protocol.
2. Members are pseudonymous and transactions are recorded publicly so that every user can verify that each transaction is valid.
There are a few reasons why most people haven’t heard of bitcoin. For one, bitcoin is still a relatively new concept. Many Americans have not used it or don’t know anyone who has used it. As bitcoin becomes more popular, more people will hear about it and begin using it as well. Also, many believe that bitcoin is only accessible to those with very high incomes and financial resources, which isn’t true. It doesn’t cost anything to acquire bitcoins; therefore, any person can use them regardless of income level.
Altcoins are a set of alternative coins launched after bitcoin. Examples include litecoin, ethereum, and namecoin. (I’ll get to that last one shortly.) Altcoins have taken on various characteristics of bitcoin—like decentralized exchanges and proof-of-work algorithms—but they also have their own unique qualities. And those differences mean altcoins don’t simply rise and fall with bitcoin.
The difference between trading and investing is best explained by a simple analogy. If you buy a stock, your goal is to sell it later at a higher price. The moment you buy it, though, its value can drop immediately. In that case, you’re going to want to sell it for less than what you paid. Your intention was never to hold onto it until higher prices came along. That’s speculation—something most people think of as short-term trading or even gambling. With an investment, you’re looking for long-term growth over time rather than short-term gains, which means not needing to worry about immediate fluctuations in value.