Bitcoin is gaining traction worldwide, and it has caught the interest of an increased number of individuals, businesses, and governments. More people are educating themselves about Bitcoin and looking to invest in BTC. If you’re also considering investing in Bitcoin, we have picked some important and basic things you need to know about bitcoin.
What is Bitcoin
Bitcoin is a digital cryptocurrency that was created by Satoshi Nakamoto (his real identity is unknown. This is his/her alias) in 2009. But what made this digital cryptocurrency successful was its decentralized peer-to-peer- payment system.
This peer-to-peer payment system was first explained in the white paper published by Nakamoto’ bitcoin: A Peer-to-Peer Electronic Cash System’. This system is also known as the blockchain, which is powered by many computers all around the world, and it enables completion of the transactions instantly, while the records of the transactions in the network are immutable, safe, and anonymous.
Another important thing about the blockchain network is that it offers complete transparency about the data on the network. It is also the first network that functions without financial institutions, enables quick cross-border payments.
Bitcoin Mining
The network operates without a third party due to a significant role fulfilled by the so-called miners. The purpose of the miners is to verify the transactions in the blockchain network. In order to that, they need to solve the latest hash, which is essentially a difficult math problem.
It should be noted that they do get a mining prize, which is bitcoin tokens, and these keep them motivated to continue to work on the blockchain network, maintain the security of the network, and approve blocks of transactions.
Otherwise, they also need great equipment, good hardware, and software. So, it’s safe to say that they are a crucial component of the entire blockchain network. This is another option for people to obtain BTC, but it requires a lot of effort and time.
Online Trading Platforms
This leads us to the rise of online trading platforms. On online trading platforms, you can obtain BTC, trade BTC, fiat currencies, and other digital currencies. Furthermore, investors find it useful that most reliable platforms have an app that you can download and track your investments on the move. A great platform you need to check out is the BitQT app official site. This is an AI-powered platform where you can potentially gain $1250 daily profit on a minimum deposit of $250.
Moreover, this is an amazing platform suitable for beginners because it is powered by AI algorithms; the robot completes the technical aspects of the trading process. It’s worth mentioning that this platform is RSA encrypted website.
Hence you can rest assured that your data remains safe. Besides, if you have any questions, their award-winning and attentive customer support team will assist you. In fact, they are accessible every day, 24 hours a day, via live-chat, email, and phone. The app is downloadable on both iOS and Android mobile devices, while you can also trade on your desktop devices.
Bitcoin Halving
Bitcoin is even more valuable because it’s scarce. There’s a limited number of BTC, created by Satoshi Nakamoto, and we have already minded roughly 18.38 million from a supply of 21 million BTC. Here it’s worth noting that the reward miners get is split, roughly every four years, or 210,000 blocks. They started with a reward worth 50 BTC, and in 2020, thanks to the last halving that occurred in May this year, their reward is 6.25 BTC.
So, as we mentioned before, the supply is limited, while the interest or demand for BTC keeps growing. Hence, based on the ratio of the supply and demand for BTC, each halving has boosted the price of bitcoin, and it has also attracted more attention because it’s expected the price to grow, as it did with every halving in the past.
Price Volatility
Historically, the price of bitcoin fluctuated, which means a lot of people did manage to get rich quickly when the price was up. Actually, the price soared in 2017 (after the halving in 2016), and it achieved a price of $20,000. But, as of the last halving in 2020, it stayed in relatively same range between $10,630.37and $8,784.96.
And when the halving took place, it reached $9,999.93. But, it continues to grow steadily over the course of the year, and in November, it has an average price of $15,000. What’s even better, a lot of people predict that the price will reach new heights by the end of 2020. That being said, this is another reason why bitcoin a hot topic around the world today, and it made more people interested in investing in cryptocurrencies.
