Bitcoin (BTC) is a new kind of digital currency-with cryptographic keys-that is decentralized to a network of computers employed by users and miners around the globe and is not controlled with a single organization or government. It is the first digital cryptocurrency that has gained the public's attention and is accepted by an increasing number of merchants. Like other currencies, users can utilize the digital currency to get goods and services online along with in certain physical stores that accept it as a form of payment. Currency traders can also trade Bitcoins in Bitcoin exchanges.
There are numerous major differences between Bitcoin and traditional currencies (e.g. U.S. dollar):
I believe that Bitcoin will gain more acceptance from the public because users can remain anonymous while buying goods and services online, transactions fees are much lower than bank card payment networks; the public ledger is available by anyone, which may be used to avoid fraud; the currency supply is capped at 21 million, and the payment network is operated by users and miners in place of a central authority 코인리딩.
However, I don't think so it is a great investment vehicle because it is incredibly volatile and is not so stable. As an example, the bitcoin price grew from around $14 to a peak of $1,200 USD this year before dropping to $632 per BTC during the time of writing.
Bitcoin surged this year because investors speculated that the currency would gain wider acceptance and so it would upsurge in price. The currency plunged 50% in December because BTC China (China's largest Bitcoin operator) announced so it could no longer accept new deposits due to government regulations. And according to Bloomberg, the Chinese central bank barred financial institutions and payment companies from handling bitcoin transactions.
Bitcoin will likely gain more public acceptance over time, but its price is incredibly volatile and very sensitive to news-such as government regulations and restrictions-that could negatively impact the currency.
Therefore, I don't suggest investors to purchase Bitcoins unless they were purchased at a less than $10 USD per BTC because this could allow for a much bigger margin of safety.
Otherwise, I believe it is far better to purchase stocks that have strong fundamentals, along with great business prospects and management teams since the underlying companies have intrinsic values and tend to be more predictable.
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