Quick Access to Content – Summary
Bitcoin, the cryptocurrency launched in 2009, after the economic crisis of 2008, since this year its popularity has not stopped increasing. Is this the ideal alternative investment to bypass traditional financial investments? What are the risks associated with it?
What exactly is Bitcoin?
This cryptocurrency was created by Satoshi Nakamoto, which is only part of the blockchain, simply denoting a dematerialized computer protocol. To be able to invest in bitcoin you must first register on an online platform such as bitit.io/fr/acheter/bitcoin-btc and download software that will be installed on the computer and serve as an account in virtual bank.
Transactions are not carried out without any intervention from a bank intermediary, their validation is done by a validation process carried out by “minors”. The computer does calculations and you receive bitcoins in return.
What are the advantages of Bitcoins?
The first advantage is the fact of not depending on any central body, which would have the role of regulating its use, this regulation is made by the “minors”. No transaction will be counterfeited, as it is encrypted, so they are naturally secured by the system.
Today, this virtual currency can be used as a means of payment when it is accepted, which is happening more and more, even in shops. Another significant advantage, you can invest in bitcoin anonymously, no personal and financial information will be required.
Fundraising is called “token” and is increasingly popular with young companies such as start-ups, because they do not require bank loans and it is done quickly. Finally, you should know that this virtual currency can be transformed into real currency at any time, which encourages financial institutions and brokers to offer you to invest in bitcoin.
How is the price of this virtual currency fixed?
For the fixing of the price, there is no difference with a traditional currency, it varies according to the supply and the demand. However, be aware that being a virtual currency it is not legal tender and its quantity is limited to 21 million units.
Its value is fixed according to the wishes of States or according to announcements made about its integration into the economic system. Having high volatility, it is not always very well received by investors.
What are the risks associated with this investment currency?
Like any financial investment, there are risks, the first one concerns its value, which varies according to supply and demand, it is not fixed and can drop overnight. The other drawback and its limitation set by its creator, from 21 million units until 2110, their creation is therefore more and more complex. In addition, investors’ capital is not guaranteed by any regulatory body and if they wish to convert their investments into another currency. Finally, his anonymity is no longer guaranteed, as the judicial control authorities may request additional information.