The rise of Bitcoin
While Bitcoin isn’t anything new, the truth is that more and more people are showing a lot more interested in it.
What is Bitcoin?
Simply put, Bitcoin is a digital currency that is both created and held electronically. Simply put, no one controls it. Created by a software developer – Satoshi Nakamoto back in 2009, the main idea is to produce a currency that doesn’t need any central authority (like a bank) to back it up.
Most Bitcoin fans tend to mention a few advantages of using Bitcoin instead of the common US dollars or the Euro. Some of these advantages include the fact that it’s decentralized, it’s anonymous, easy to set up, completely transparent, transaction fees are minimal, and it’s fast. So, not surprisingly, the Bitcoin value has been rising lately and it has even got to be worth more than $1,500.
Just last week, there were so many people trying to access Coinbase, the largest consumer trading platform for Bitcoin, that it briefly crashed. More and more people are looking at Bitcoin as a way to invest their money and make an extra income. Even though many experts are advising that Bitcoin is showing all signs of being a bubble, no one seems to miss the train.
However, Bitcoin is used for more than speculation and investments. Some people tend to use Bitcoin to make payments, especially international payments. And one of the reasons is the fact that the costs are substantially less than a regular transfer or payment. Besides, more and more businesses (large and small) are taking the low fees to accept payments in Bitcoins as well.
While it may seem that the Bitcoin world is all roses, there are also some misconceptions and most people don’t know about them or don’t even care about the risks.
One of the main risks about Bitcoin is its huge risk and volatility. While volatility isn’t much of a bigger problem today since there is a limited amount of coins available and the demand keeps increasing every day, the truth is that it is expected for the volatility to decrease as time goes on. Besides, as more people and businesses accept Bitcoin, the more stable the price will be.
Another great risk that is worth mentioning is that Bitcoin is a still in development. In order to make everything safe, there is the need to be new tools, services, and features that are still being developed at the time.
Just like everything in life, Bitcoin has a lot of advantages and disadvantages. Personally, I don’t use it and I don’t intend too. I believe it’s too much of a risk for me.