Bitcoin is a peer-to-peer network and digital currency first introduced in 2009, decentralized and independent from any government or banking authority.
Among other benefits, Bitcoin allows users the option of conducting financial transactions at lower rates than traditional online payment mechanisms.
As a user, bitcoins are helpful in facilitating financial transactions with minimal fees. Bitcoin as an investment tool offers investors three significant 3's over traditional investments: liquidity, high market demand, minimalist trading.
In fact, it offers the opportunity to know at all times the price of bitcoin , to know the profitability it has in real time.
Find out what a Bitcoin is and what its main benefits consist of to invest in it.
Bitcoin is a cryptocurrency, a kind of electronic cash. It is a decentralized digital currency , that is; without a central bank or sole administrator. This currency can be sent from user to user on the bitcoin Blockchain network without the need for intermediaries.
In this way, it eliminates the need for traditional intermediaries such as banks and governments to carry out financial transactions.
It works through a combination of peer-to-peer technology , a network of individuals, and software-driven cryptography, the science of transmitting secret information that can only be read by the sender and receiver.
This creates a currency backed by a code rather than items of physical value, such as gold, or by reliance on central authorities such as the euro or the US dollar. The evolution of Bitcoin has led it to be the first virtual currency in the world.
3 advantages of investing in Bitcoin
Traditional investors have always approached digital currencies like Bitcoin with extra caution due to their highly volatile market value. However, the overwhelming performance of Bitcoin as an investment and a currency has attracted traditional investors in recent months.
Liquidity
Bitcoin is considered as one of the most liquid assets in the financial market today due to the global establishment of Bitcoin exchanges, trading platforms and brokers.
Bitcoin's high liquidity creates a viable ecosystem for investors to trade, especially those looking for short-term profits. The digital currency is also a practical long-term investment, due to its particularly high demand in the market.
High market demand
Traditional investors often question the demand and value behind Bitcoin. Investors who have limited knowledge of technology struggle to understand the economics behind this digital currency and how its market value is determined.
Ultimately, like any asset in today's market, the value of Bitcoin is directly dependent on its demand.
Therefore, the high market demand for Bitcoin guarantees investors a bright long-term future , as it is a deflationary currency. The value of Bitcoin will continue to rise until its available supply is maximized.
Minimalist commerce
Trading Bitcoin is a more minimalist form of investment compared to trading stocks. Investors simply buy or sell Bitcoin on exchanges and store it in their wallets.