A lot of people today are still confused what Bitcoin is. In 2017, Bitcoin’s price went from around $1,000 to almost $20,000 thanks to speculation and those investors who were looking to make huge profits from their investment. But before you even invest, it is a good idea to know what Bitcoin is and why it was made.
Bitcoin is a cryptocurrency. The premise of having a cryptocurrency is to remove the third parties involved in confirming transactions. That means that central banks are no longer involved in the issuance of Bitcoin and other cryptocurrencies. So who exactly validates the transactions? That’s where Bitcoin miners enter the picture. Bitcoin mining is considered an energy-intensive activity wherein you will have to solve algorithms using powerful computers. And the thing with this system is that the transactions are written in a public ledger called blockchain.
Now, Bitcoin has dropped in value from 2017 to today. It even dipped to around $5,400 after Bitcoin Cash decided to have a software upgrade and everyone didn’t agree with the decision. If you are considering to buy Bitcoin, this is the best time to do it. You always have to look at things in the long run if you are going to buy Bitcoin. For one, there are regulatory changes that happened in 2018. You are slowly having institutional investors getting involved in the market. In fact, the US Securities and Exchange Commission could even be approving a Bitcoin ETF soon. Now, what it means is that even institutional investors are seeing the value of cryptos especially Bitcoin.