If the thought of investing in Bitcoin has crossed your mind, you need to know you are not alone. Virtual currencies are a very popular investment for plenty of good reasons. Starting out small no further than a decade back, cryptocurrencies established themselves on the market and it seems like they are here to stay.
Depending on the current portfolio and the budget of an investor, Bitcoin can be both a blessing and a curse. It helped many people get rich while it sank the ships for others.
Used by plenty of merchants in all fields of activity and especially preferred by gamblers in sensitive regions, like the ones playing at India-casino.in, we can say for sure that Bitcoin is a powerful tool and will only continue to gain more influence in the future.
Before rushing in to make an investment, it’s a good idea to read the article below and find out whether Bitcoin is worth adding to your portfolio or not.
How it works
To put it simply, Bitcoin is software, a digital currency that flows in a decentralized system called a blockchain. Here, the system records all transactions and calculates them in real-time.
The blocks or the Bitcoin itself is created through a process called mining. Miners offer their machines for algorithm solving where a new block is created. As new blocks are added to the blockchain, the miner is rewarded with a small part of a Bitcoin.
There will be a total of 21 million Bitcoins and right now over 18 million have already been mined and added to the blockchain. This means that there are only 3 million Bitcoins left to be added before the process is complete.
This is where Bitcoin sets itself apart from fiat currency. In a centralized banking system, the growth needs to be matched by regularly producing additional currency. Bitcoin runs under a decentralized system where the number of blocks remains unchanged maintaining the value of the currency and remaining immune to inflation.
Is crypto a long term investment?
We can consider Bitcoin as a long term investment, especially since the top cap of blocks is almost reached. Up until now, miners and other network operators can get their hands on Bitcoin by taking part in transactions and offering their computing power for the network.
When the last block will be mined, the only way to get Bitcoins will be through transactions. This means that the price will most likely go beyond any expectation, however, nobody knows when this is going to happen.
Even now, Bitcoin is the most liquid investment asset accepted by a lot of merchants worldwide. It is very well established in trading platforms, currency exchanges and online brokerages with more and more participants joining each year. There is no exaggeration to assume that in the future, Bitcoin will be present and accepted everywhere in the world.
The final reason why Bitcoin can be a long term investment is the fact that the blockchain is independent, not owned by any government or banking system, making it immune to inflation.
How Can You Buy Bitcoins
There are plenty of websites on the market offering Bitcoins for sale. Keep in mind that on any of these websites you will need an account and possess a form of payment in fiat currency that will be traded for Bitcoins.
For the next step, you will need a Bitcoin wallet. The process is very similar to creating any other e-wallet account. You have to choose the desired Bitcoin wallet on the internet and register an account there. A valid email address and the desired password must be provided.
Once your Bitcoin wallet is ready, you will want to generate a Bitcoin address in your wallet. This address is your personal key and it needs to be provided on the website of purchase so you can move the recently bought Bitcoins to your wallet. After you complete this final step, you can now use the Bitcoins in your wallet for purchases or other transactions.
What are the risks
When it comes to any speculative investment, there are always risks involved and Bitcoin is no exception. The security systems of cryptocurrencies and the very way they work makes it impossible for bad actors to interfere with the market so there is not any reason for concern here.
However, Bitcoin as a cryptocurrency is very volatile. This means that the price can skyrocket today and hit rock-bottom tomorrow. This has happened before as this cryptocurrency has seen drastic ups and downs over time.
Bitcoin was the first-ever cryptocurrency to emerge on the market and it’s right now known as the number 1 digital asset meaning that it shows more stability compared to other cryptocurrencies and it is most likely the one to recover the fastest after a market crash.
Even with all the safety measures in place, Bitcoin is a high-risk/high-reward investment that’s not suited for everyone. It all comes down to your experience in speculative investments, your additional investments in the portfolio that can save you from a market crash and your appetite for risk.
Can bitcoin be exchanged?
Bitcoin can be exchanged just like fiat currency. There are plenty of cryptocurrency exchange platforms that will offer your desired currency for your bitcoin. The transaction is made online and the cash will be delivered to your bank account.
The second, more simple way is to find a Bitcoin ATM and withdraw cash just like you would normally do with your regular currency. Unfortunately, these sorts of ATMs are currently quite rare and available in few locations.
Final Words
In the last decade, Bitcoin and cryptocurrencies, in general, have become the best performing asset and it seems like they will continue to grow as the market is more open to using them.
Running in a decentralized system, Bitcoin has a monetary policy that appeals to most people, especially now in the hard times after the pandemic. Having a currency immune to inflation is what attracts a lot of investors towards Bitcoin and other cryptocurrencies.