Bitcoin is a common topic of discussion among entrepreneurs, stock traders and investors today. But, there are not many people who understand what bitcoin really is, how it can be traded and spent and the factors that influence its value.
For beginners, the most simplified definition of bitcoin is that it is a type of digital currency that is not controlled by any government or bank. Specialized hardware and computer programs are required to create bitcoins and process the transactions which include buying and selling bitcoins on the markets.
According to a number of people who support bitcoins, this digital currency allows for secure transactions to take place over the web. From its inception in 2009, bitcoin has gained massive attention worldwide. Within a span of eight and a half years only, it has attracted millions of supporters, despite having a controversial history.
What is the price of bitcoins?
Bitcoins do not have a specific price. Their price is influenced by their demand and supply. At the moment, there are about 21 million bitcoins available and this figure is not likely to increase. This means that the supply has been limited to only 21 million and in the future, it will remain the same. On the other hand, the demand for bitcoins is high and since the supply is fixed, the price is constantly going up.
The number of people that use bitcoin is small and this is the reason, the price is subject to fluctuation on a daily basis. but as more and more people become familiar with this digital currency and start using it, the price will go up. At present, one bitcoin is worth thousands of dollars. In the future, the price could be hundred or even thousand times more. The bottom line is that the demand for bitcoins has to be accommodated for.
How to trade bitcoins?
There are a number of ways in which bitcoins can be bought and sold. Bitcoins can be acquired through trusted exchanges. It can be bought through a bitcoin wallet. There are a number of e-wallet options users have to trade bitcoins. These allow users to link their bank accounts to make deposits and withdrawals when it comes to buying and selling bitcoins. With some wallets, users can acquire a payment card that converts their bitcoins into currency that can be used locally. Those who are looking to invest in bitcoins can do so through their broker.
Bitcoin is a good investment choice
Bitcoin prices have risen exponentially in 2017. No one would have expected it to rise so much in value, but it has experienced a great deal of volatility as well. Prices have soared up to 500 percent which is extremely incredible. Although debates are ongoing about the future of bitcoins, it looks like this digital currency is here to stay for a long time. it is proving to be a good investment choice. There are also many interesting and unbelievable facts surrounding this cryptocurrency which you can find out by taking a look at the infographic.
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