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  • Bitcoin Milestone Reached

    Published on February 13, 2022

    The milestone of Bitcoin passing $10,000 for the first time was reached on Tuesday, December 5th. This represents a massive growth in value for the cryptocurrency since it was first created in 2009. The decentralised currency has been steadily increasing in value throughout 2017, with many attributing the rise to increasing interest from institutional investors. While some remain cautious about investing in Bitcoin, others see it as a way to ensure potential high returns through price appreciation.For more information visit Brexit Millionaire.

    Origin of Bitcoin

    Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

    Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. It is estimated in many pieces of research that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

    The system is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.

    Since the system works without a central repository or single administrator, bitcoin is called the first decentralised digital currency.

    Bitcoin better than Conventional Currency

    Despite Bitcoin’s high volatility, some see the currency as a safe-haven asset due to its immune system towards inflation and recession. Additionally, Bitcoin has seen exponential growth in comparison with conventional currency over the past year. While critics have long argued that Bitcoin lacks intrinsic value due to a lack of assets backing it up, recent price increases look promising for the future of the cryptocurrency.

    Difference between Bitcoin and Traditional Currency

    Bitcoin is a digital currency that is not backed by any government or central bank. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. 

    Traditional currency, such as the US dollar, is backed by governments and their resources. Central banks also regulate traditional currencies, often causing inflation or deflation. Bitcoin is not regulated by any government or central bank, but its value is determined by the market.

    Bitcoin is decentralised. There is no central authority that regulates it, but all users are part of the network. Bitcoin was designed so there would never be more than 21 million coins in existence. All transactions on the blockchain are public and easily verifiable.

    Traditional currencies are centralised and regulated by a governing body such as a government or central bank. Traditional currencies can be printed and increased at any time by a governing authority, which often leads to inflation.

    Bitcoin is accessible to anyone with internet access through a variety of wallet options for different devices.

    Unlike Bitcoin, traditional currency only exists in physical form and must be exchanged between individuals. 

    Benefits of Investing in BitcoinStandard benefits:

    -Bitcoin is a safe haven asset.

    -Potential for high returns through price appreciation.

    Emotional benefits:

    -Feel secure from inflation and recession.

    -Feel like an early adopter.

    -Feel more intelligent than peers investing in conventional currency.

    Risks of Investing in Bitcoin

    Risks Involved in Bitcoin Investment

    -High volatility due to decentralised nature.

    -Could crash if too much regulation occurs.

    Emotional risks:

    -Could lose money like with any investment.

    Bitcoin’s Volatility

    Bitcoin’s volatility has been a cause of concern for some investors, as the cryptocurrency has seen large price fluctuations in previous months. This is due to its decentralised nature, which has led to large price swings. While some investors remain bullish on Bitcoin, others are concerned that the currency may crash if too much regulation occurs.

    Bitcoin’s Future

    The milestone of Bitcoin passing $10,000 was reached on Tuesday, December 5th – Despite this growth over the last year, some remain cautious about investing in the cryptocurrency – It has seen exponential growth in comparison with conventional currency and is considered a safe haven asset by many – While it’s unknown what the future holds for Bitcoin, many predict volatile behaviour from the currency – Some predict further increases in value while others fear a complete crash will occur if too much regulation occurs – Whatever the future holds, one thing is certain: Bitcoin seems to have a bright future ahead.

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