5 Things You Should Know Before Buying Your First Bitcoin


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Introduction

Even though there is so much information out there about Bitcoin, many are still unaware of what it seems to represent. This is because the philosophy behind Bitcoin has been overshadowed by its mercurial rise in valuation.

Very recently, when Bitcoin crossed the $300 Billion dollar market cap, many pointed out that how the crypto is now coming into its own. Bitcoin offers a strong promise for the future and has been dubbed as the ‘Digital Gold’ for its hedging abilities against inflation.

In this article, we will look at five important things you should know about the cryptocurrency before you decide to take in the plunge. However, before we get to the list, let us briefly look at the history of Bitcoin.

Meaning and Origins of Bitcoin

Many people do not know that the origin of Bitcoin is very closely linked to the financial depression of 2007-08. When banks and financial institutions crashed, normal people paid the price for the faulty and unholy nexus between banks and financial institutions.

Satoshi Nakamoto wrote the code for cryptocurrency and Blockchain technology. He envisaged a decentralized and distributed digital ledger, which was completely autonomous. The central aim was to eliminate governments or any other authority who could have control over the cryptocurrency or the technology behind it.

Being a people to people run the system, it would mean that normal individuals are in control. This would make lightning-fast transactions possible, eliminate billions in commission fees, and would be free from the effects of inflation, recession, and debt.

Many have heralded Satoshi Nakamoto for giving the world the greatest tech after computers and the internet. There was no doubt that cryptocurrencies were extraordinary in their usage and applications.

5 Things to know before buying your first Bitcoin: The List

Bitcoins are not stable as an asset-

Before you invest in your first Bitcoin, you should know that the crypto is unstable in nature. This means that the digital currency can experience vast fluctuations in its valuations. While this can lead to an insane amount of earnings within a short period, it can also wipe out a significant portion of your investments if things go south.

Bitcoins do not enjoy completely legal status in different parts of the world-

Even though the last few years have seen countries like Canada, Germany and Japan formalize the use of cryptocurrencies; others are playing the wait and watch the game. This means that not all countries of the world accept Bitcoins or other forms of cryptocurrencies for use. However, this is changing with more countries opening up and regulating use.

Bitcoin is a long-term growth asset-

Many professional Bitcoin experts are of the opinion that investing in Bitcoins should be done over extended periods. This means that short selling is not a good option for investors. This is critical as the currency itself is very much new and shirt selling sets off the volatility in the market. If you are looking for a long-term asset to invest in, you should go for Bitcoins.

Bitcoin offers a promise for the future-

Everyone agrees that our present financial and economic system is controlled by a very few entities. These corrupt entities always look to centralize power and pass bad financial policies, which are not in the interest of the general population. It seeks to envisage a world where money and its complete control wrests in the hands of individuals themselves.

Investing in Bitcoins can be highly profitable-

In the past few months, the COVID-19 pandemic has wreaked havoc in the entire world. With the economies of developed nations experiencing a recession, it was only Bitcoin, which saw tremendous growth. In fact, in the five months (March to July), the growth has been close to 400%. This means one thousand dollars invested in March would give you four thousand dollars in July.

Conclusion

If you are someone who is looking to invest in his or her first Bitcoin, you should do so from a credible and trusted trading platform. Read more about Bitcoin Bankruptcy Virtual Currency


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