Unless you live in the Stone Age period, you must have probably heard about Bitcoin by now. Bitcoin caught the attention of mainstream news outlets when it recorded its highest price at more than $19,000. The current value stands at around $9000 which goes to show the volatility of the cryptocurrency market. That doesn’t mean that you shouldn’t be investing in Bitcoin. It is imperative that you do your own research if you intend to invest Bitcoin or any other cryptocurrency. You can check out bitcoin-code.org for more information on Bitcoin and the trading aspect. Before you can invest in Bitcoin, there are some key considerations you should be having in mind and we’re going to highlight some of them.
Not Completely Anonymous
One of the reasons you might have heard why Bitcoin is preferred as a form of payment is that it is anonymous. This is not entirely true. There is nothing that will stop a determined hacker from looking up your information. The same can be said of the government. While trading with Bitcoin will reduce the chances of being tracked, you’re not completely anonymous.
Different Perceptions In Different Countries
There is no single consensus on what Bitcoin is and what it should entail across different countries. One of the reasons why Bitcoin is popular is because it is not regulated by national governments. This about to change in the United States as The House of Representatives seeks to pass two bills which seek to regulate and protect consumers from bad players. In countries like Japan and Australia, cryptocurrency is treated like any other currency. There are also countries like Jordan and Lebanon in which the government has issued official statements stating that they don’t support the use of Bitcoin or any other cryptocurrency. This can’t prevent the citizens from using Bitcoin if they wish to do so because of the challenges with regulation.
Contrary to popular belief, there is not a lot of Bitcoin going to around. According to statistics, there are 21 million bitcoins out of which 16 million are in circulation. This gives you an idea of what is to be expected with the Bitcoin market.
It is not the Only Currency
Even though it is Bitcoin that gets all the media attention, there are other cryptocurrencies as well. An example is Ether which is the second-best cryptocurrency after Bitcoin. Just like Bitcoin, it is also rare as only 16 million coins were created in 2014. In order to fully understand Bitcoin, it is imperative to have knowledge of the entire ecosystem.
Bitcoin Is Way Popular Than You Might Think
At the time of publishing this article, the value of Bitcoin is at $9, 750. The U.S federal government has been looking for ways to regulate cryptocurrency mostly because of the rise of popularity of Bitcoin. The Chinese government is also looking at ways of cracking down on Bitcoin. It was not a while ago when there were reported raids on people buying and selling Bitcoin. This only made Bitcoin more popular in China and people are using it to prevent surveillance from the government.
Who Created Bitcoin?
There are tons of conspiracy theories about how Bitcoin came about. Despite the many theories, no one has been able to come up with a viable conclusion the origin of Bitcoin. The creator, who is thought to be Japanese created a detailed article on how Bitcoin actually works long before people started mining it.
In the U.S, there is a theory that Bitcoin was created by NASA. Even this was true, the anonymous nature of Bitcoin wouldn’t be as prevalent as it is today.
It Is Not Just For Use In The Black Market
Most black market websites prefer transacting with Bitcoin to reduce the chances of being tracked. Since there are no regulations on the use of Bitcoin, most governments are not aware of how to track or regulate it when it comes to transactions. The F.B.I owns close to 1.5% of the Bitcoin circulating on the internet. There are legitimate websites that accept the use of Bitcoin to make purchases on the internet. There are no transaction fees to worry about.
To sum it up, the world of Bitcoin is complex. If you’re thinking about investing, it is important that you do due diligence. You should only invest what you will be willing to lose. Make sure that you’re working with trusted sites when trading Bitcoin.