It is a digital currency, also known as crypto-currency, created in 2009. Its relevance back then was nothing much as compared from 2016 and onwards. No middlemen- i.e. no banks are involved in the transactions.
Why it is so Valuable?
Scarcity is the one thing that this currency has going for it in terms of controlling bitcoin price. Although not all of it has been made public, there is a finite amount of it globally. The concept is that it has a fixed value and is becoming more difficult to acquire. In times of economic uncertainty, investors have recently agreed that crypto-currency is a good place to invest. The explanations for this vary, but the main one is that these decentralised currencies have better returns when firms are bailed out. Government-controlled currencies are devalued due to lower interest rates.
- Bitcoin is very accessible.
- It is very easy to sell or cash out; at times, you require money.
- Peaks at exorbitantly high prices.
- You’ll always know where it is coming from and going.
Simultaneously, these transactions are both private and transparent. Any transaction can be tracked, so you always know where it is and where it has gone. They are, however, incognito in the sense that you would not know who possess the digital wallet they are in unless the owner gives you permission. In other terms, if you’re trying to mine bitcoins, you won’t be investing money in them; instead, you’ll be paying for it with your energy bill. It is riskier than government currency and other asset groups because it operates entirely outside of government supervision. However, selling or buying is not difficult, and you can only make a small number of transactions.