It’s difficult to find a person who hasn’t heard about Bitcoin yet. But few really understand it. So for those looking to invest in Bitcoin, we are not going to do a deep overview here, but rather explain the necessary basics. Read more to find out about Bitcoin investment and why it is considered digital gold.
BTC first saw the light in 2008 when someone named Satoshi Nakamoto released a whitepaper describing what we now know as blockchain. Up to this day, no one knows who Satoshi Nakamoto is, which makes the whole concept around decentralization even fancier.
In essence, Bitcoin is a fully decentralized digital currency that relies on the proof-of-work concept (PoW). It means that to verify transactions some amount of energy or ‘work’ has to be done and it is recorded in nodes on the blockchain.
The main advantage is a direct transfer of funds. We usually do it through banks, which plays a role as a hub of information. If it decides to block you because your country is under sanctions or just because you had a quarrel with one of the directors, you won’t be able to receive or send money. Blockchain and Bitcoin allow you not to rely on one party thanks to decentralization of information.
The maximum number of bitcoins is limited to 21 million, and there are already 19 million mined. You can see the current price of bitcoin on the chart above, but the good news is that you can invest in BTC with any amount thanks to fractional trading.
One can either buy Bitcoin on an exchange or receive it as a reward for mining, i.e. proving transactions on the blockchain. They can be exchanged for other currencies, products, and services. Last year Elon Musk announced they would receive bitcoins as a payment for Tesla but later canceled this plan. Now it’s possible to buy property in some places or use a crypto card as a regular debit card. Bitcoin can also be held as an investment. As of March 2022, more than 81 million people have created unique Bitcoin wallets.
With rising inflation and interest rates, more people consider saving money in Bitcoin just like in gold, and for good reason. Like gold, Bitcoin is scarce, divisible, and durable.
However, there are several advantages over gold that might make you want to invest in Bitcoin now. For one, Bitcoin is much more liquid than gold, meaning you can buy and sell it instantly in comparison to physical gold. You can store as many bitcoins as you like on a crypto wallet or a flash drive. Bitcoin can also be divided into smaller units, making it more accessible to a wider range of investors. As a result, investing in Bitcoin can be a great way to diversify one's portfolio and hedge against inflation.
Everyone was in a rush to invest in Bitcoin now because the trust in financial institutions is being undermined by their limiting conditions. At the same time, Bitcoin has continued to grow in strength, proving that it is a reliable and safe investment. This increased demand is driving up the price of Bitcoin, and there is no reason to believe that this trend will stop any time soon. So the best way to invest in Bitcoin is buying it now, because if you believe that the future is digital then Bitcoin is your top pick.
To answer the question, ‘Where can I invest in Bitcoin?’ you can buy it at all crypto exchanges and from very few brokers. But very soon in Gainy, too!