Bitcoin is completely transparent. All Bitcoin transactions are public, traceable, and permanently stored on the Bitcoin network. Bitcoin addresses are the only information used to define where Bitcoins were located and where they were sent. These addresses are personally created by wallet users. Because users generally have to reveal their identities in order to receive services or goods, Bitcoin addresses cannot remain completely anonymous. The Bitcoin network is a peer-to-peer network on which it is possible to report user IP addresses.
Which countries support Bitcoin as a currency?
The legal status of Bitcoin varies from state to state, yet the list of states that accept BTC is constantly growing.
Bitcoin operates independently of any central bank, as opposed to all other, well-known currencies like the Dollar, the Euro, etc. The Bitcoin network has no other central point, no administrator, making it a decentralized digital currency.
The fundamental value of Bitcoin is generated through “mining” and is closely related to electricity and computer hardware costs. The rest of its value is growing in limited quantities, a slow generation process and increasing demand.
Bitcoin is spreading around the globe as a valid means of payment by which you can buy various goods and services, which further increases the demand for it.
Is Bitcoin legal?
Regulations vary from state to state. Currently, only Japan officially recognizes Bitcoin as money, while other countries do not have a regulated legal framework for it. It is to be expected that national financial regulators will become increasingly interested in Bitcoin and other virtual currencies, in proportion to the speed with which blockchain technology will spread and the level of growth of the crypto economy.
Bitcoin and security
Bitcoin is a volatile asset, the value of which often changes by 10% on a daily basis, which makes it quite risky for investing and trading. Of course, without high risk there is no high profit, after all, to trade Bitcoin you do not have to invest or use funds whose loss you can not afford.
The good news is that Admiral Markets provides an additional set of advanced account types - Volatility Protection - or additional programs for highly volatile instruments.
Is Bitcoin a financial bubble that will burst?
The situation surrounding crypto technology is very similar to the dotcom bubble of the early 2000s. A large number of projects are closely linked to the blockchain and publish their ICOs on a daily basis, which stands for Initial Coin Offering and represents the crowdfunding phase of the project. It is a kind of initial public offer of an IPO, but in a crypto economy. Projects are collectively funded by the public who buy their tokens in exchange for Bitcoin or other major cryptocurrencies. Of course, as in any other industry, 90% of projects fail to produce a functional product, and we are likely to witness a large number of sound bankruptcies soon. To some extent, Bitcoin may be overvalued, thanks to the massive consumption of Bitcoin during the ICO.
So is Bitcoin a financial bubble or not? We will know that only when and if it breaks. In the meantime, you can trade CFDs on Bitcoin at Admiral Markets and profit with a 1: 5 leverage, twenty-four hours a day.
Stay tuned and expect new, exciting information about Bitcoin and other cryptocurrencies… soon!
Very good post