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Is bitcoin really safe?

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Everybody is suprised by the bitcoin’s price, from 5000 USD in 2017 to more than 50000 USD today. That’s why many investors starts to invest on it or to think about it. but is it a safe investment that we can put our money in it or not??

A brief history of bitcoin

Satoshi Nakamoto created bitcoin in 2009. It’s a decentralized virtual currency which does not exist in a country and is not subject to control of any country. Each bitcoin’s is bought and sold on various exchange like Bittrex. Bitcoin’s price The cryptocurrency does not have a central authority. It has transactions managed by each computer belonging to the bitcoin network. This computer collects the users’ transactions in the blockchain and verifies and validate each of them before recording them in the distributed, encrypted ledger known as blockchain. Each transaction is recorded in a new block. This makes it difficult for anyone to double-spend or spend the same bitcoin twice. Even though it’s not free, the price of bitcoin keeps growing at an amazing rate.

What is bitcoin?

From the technical point of view bitcoin is a ledger or database of transactions. One of the main advantages of blockchain technology, is that it does not rely on any bank, financial institution, or clearinghouse. Bitcoin is an open source software (which means it can be copied and modified) and very easy to install on a computer. If you use bitcoin, you do it for free, and this is also why so many people turn into new blockchain companies, such as Block.one, which is building the platform for the new DAO, smart contract technology, which has almost the same power as an ordinary bank. Another advantage of bitcoin is that it is not regulated by any bank or any central authority. That is why so many people consider it as the “real currency of the future”.

What the future holds

Bitcoin needs regulation to become a real currency, the only effective way to ensure safety and protect from hacking. A report by BCG recently says that bitcoin is expected to reach the $105 billion dollar mark by 2025. The industry is not yet mature enough. If you are really and want to put your money in bitcoin, you should look into Bitcoin’s future and be ready to lose money. It is still in the early stage. Just few days ago in cebu, Philippines, there was a bitcoin hack that caused lost a few millions. The thing is you can’t just let your money in bitcoin, its risky to invest on something you can’t control. So it is better to invest on something more stable, it can protect your investment from loss of value.

Bitcoin dangers

Even though bitcoin is supposed to be a safe investment, there are a lot of worries about it. what is the worst thing that could happen to a bitcoin investor? Like many other cryptocurrencies, there are a lot of scams and bad developers. these are the cryptocurrencies you should never invest your money in them. For example are there cryptocurrencies of Ponzi or all in a scam? What are the hidden problems of bitcoin and other cryptocurrencies? Which currency is considered the best to invest in? Bitcoin and interest in cryptocurrencies In bitcoin, it’s almost impossible to earn on-chain.

Conclusion

Currently, the investor is making a profit by investing in bitcoin. And the question is whether this is an unprofitable investment that can be made only by the beginner? Of course not! Is the bitcoin-based on gold or on silver? And what is the relationship between gold and bitcoin? Yes, the bitcoin can be seen as secondary storage of gold but its price and movement are mostly due to market sentiments and emotions.

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