Bitcoin: a safe investment for the future

Bitcoin is an online digital currency, like a dollar or a pound but with a few exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin engages in a peer-to-peer payment system where there are no intermediaries and the goods can be safely transferred between two people on the planet. It is associated with a heavy computer network and the currency unit for the Bitcoin system (appropriately called Bitcoin) can be acquired simply by joining the vast network. Bitcoin offers a fast, cheap and secure transaction alternative, but few are willing to make the leap. So the million dollar question still lingers, is Bitcoin a safe investment?

Bitcoin is only a few years old, an interesting creation that has impressed many and, for the record, has made a name for itself on top financial charts. Its popularity has spread and has led some of the major businesses like Virgin Galactic to consider it as an acceptable source of payment. Bitcoin prices increase at rates of up to 10% and continue to dominate as the alpha of the market and this has made many interested in investing in it.

Another special feature of Bitcoin is that it does not have a central bank and is also not controlled by a central government. It is a global currency and its creation and existence is behind a complex and geeky mathematical algorithm that allows it to hide government related mishaps. The cases of political instability and government absurdities that plunge the economy into shame and take years of investments in a currency down the drain do not occur in the cryptocurrency system. This creates a safe and friendly investment opportunity with low inflation risks.

The low

With an increasingly surprising advantage, cryptocurrency also has its downsides. As mentioned, this is still taking small steps; And with that comes great uncertainties. Bitcoin prices are volatile; Currently it increases sharply and can fluctuate between 30% and 40% in a month. The world is still amazed at its appearance and very few bitcoin price  and Bitcoin holders exist. This leads to unanswered questions and cold fear among people, as investing in an unpredictable new 'gold mine' can have devastating effects. Its novelty generates a lack of regulations and scares away potential investors.

The puzzle surrounding the Bitcoin system is an important factor to consider. Anything can happen and everyone involved in the Bitcoin market is on high alert. In December 2013, China eliminated the use of Bitcoin and this led to a drastic drop in its value from $ 1,240 to $ 576 in just three weeks. Programmers also determine the functionality of this global currency and many question the idea of ​​risking their finances for some group of geeks. This prevents many from venturing into the system and increases the risk of Bitcoin investment.