If you are an investor, you should have certainly heard about Bitcoin. Recently, Bitcoin value re-crossed thousand USD mark and it was again making news all over the world. Investors are curious but sceptical about Bitcoin and would like to know more about it before they decide on investing in it. So, here are some FAQs, which might help you to understand what the Bitcoin buzz is all about:
Simply putting, Bitcoin is a digital currency, which is de centralized, i.e., it does not require an outside party (other than the payer and the payee) interference for execution.
How can one get Bitcoin?
To acquire bitcoin, you first need register and get a Bitcoin wallet. This is free of charge. Once you have a wallet, you can meet people online or offline, who already have Bitcoin and buy Bitcoin from them. You can sell Bitcoin in the same way.
What are advantages of Bitcoin?
Well, it is like any other currency. You can use it like you use cash. There are places, where Bitcoin is accepted and you can buy other things against them. An advantage is that it does not have a transaction fee. If you use a credit card, then you have to pay a fee. This is not in case of Bitcoin. In fact, some stores, provides you a discount if you use them! This is because of its ever increasing value against USD. Another advantage that it is completely decentralised form of currency and therefore, you can use them as payment without any interference by a third party. This simply means that there is no way to prevent a Bitcoin transaction, if the consigner and consignee are in consent.
What are the disadvantages of Bitcoin?
There are a few. One major disadvantage is that a Bitcoin transaction does not come with any insurance. If, for any reason, a deal goes bad, then there is no way that you can get your money back. Another important drawback is that Bitcoin fluctuates insanely. Its value changes almost every second. This trait makes it very volatile and thus risky.
How to calculate the value of Bitcoin?
Bitcoin value keeps changing rapidly. You can locate their location online. Just a bit of search would lead to many sources, where you would be able to watch the LIVE value. However, due to its nature, the value can change from a few cents to a few dollars within a few minutes!
Should I invest in Bitcoin?
It’s up to you to decide. Right now, there is a strong buzz in market in favour of Bitcoin and therefore, you might be lured to join the Bitcoin wagon. However, you should remember, that Bitcoin investment carried high risk. It’s better to spend some time researching the market trends and getting yourself more knowledgeable about the nature of Bitcoin before you can start trading with them. That being said, lots there are a lot of success stories revolving around Bitcoin and there should definitely be certain percentage of truth within them. It’s up for you to look in to everything and decide accordingly!