Bitcoin today, is the most popular and widespread form of cryptocurrency, and yes, one of the top investment choices of wealthy people too. It was found as early as 2009. Roughly, this currency is time-tested now that it has survived for more than a decade! Not that bitcoin is the only cryptocurrency existing in the market; there’s Litecoin, Ethereum, and Ripple. They are relatively new and much less popular than the crypto that’s in discussion in this article.
Characteristics of Bitcoin
Bitcoin, like any other cryptocurrency, is a decentralized digital currency. There is no governing body or organization that controls the functioning and circulation of cryptocurrency. It is bought and sold online and has no physical component. The currency is generated mathematically. All the buying and selling is done through a peer-to-peer network. Neither any government nor bank controls the flow of Bitcoin in the market.
Bitcoin is stored in a digital wallet, and it is represented by strings of code. Owners need to save this code. You would naturally be inclined to know whether any technical knowledge is required to deal in bitcoin.
Given that there's no government or other regulatory authority that controls bitcoin trading, this currency floats across economies with the aid of a peer-to-peer network. Users anywhere in the world can make and receive payments. All of these transactions (across the globe) are recorded in a public ledger called the blockchain. In other words, blockchain is a proper digital account book of bitcoins.
A peep into the Bitcoin history
Amazingly the initial Bitcoin price was $0! A lot of people are curious to the name that owned this bitcoin. We’ve already heard of him (earlier in this article) – it’s Satoshi Nakamoto. In 2009, he was known to have released the bitcoin white paper that explained the working of the entire system (that was solely based on the blockchain technology).
The currency is often considered an alternative to traditional commodities like gold or cash. The Bitcoin network has steadily grown since its creation, and many investors believe in the future of the cryptocurrency, while others aren’t so sure.
In the past few years, the value of bitcoin has appreciated significantly, drawing the attention of investors. However, there are positives and negatives to Bitcoin investment, especially this late in the game.
Is bitcoin going to crash?
Hashtag ‘bitcoin crash’ is trending. You have the answer now! Since November 2021, bitcoin has been facing the downtrend, so much so that the debacle has been raising eyebrows since then! The crash is evident from the market values of bitcoin now and then.
Back in November 2021, bitcoin’s value had been $68k. As of June 2022, it was struggling somewhere near $20k. Although it goes without saying that the entire financial market has been hit the hardest in 2022 in this decade, yet, investors in the BTC market would probably face a harder blow!
The technicality is more needed for bitcoin mining. So, what is bitcoin mining? Mining is the process of adding a new bitcoin transaction to this ledger. Mining, therefore, calls for solving complex mathematical problems, and in the process, discovering a new bitcoin. So, bitcoin mining primarily adds new Bitcoin to the blockchain ledger. The addition needs to be highly secure, and here’s where you might require some technical aptitude.
How long does it take to mine one bitcoin?
The 10 minutes – block rule...
So, how long does it take to mine one bitcoin?
10 minutes precisely. The ten-minute time is the duration needed to mine a block. Take a quick look at how the bitcoin mining works.
The blockchain technology helps run many other cryptocurrencies like the Bitcoin. It’s similar to a decentralized ledger that maintains transactional records publicly. When a set of transactions are approved, they form a block. These blocks, joined, creates a chain. When you have successfully mined, you’ve added a block to the chain. The creator of Bitcoin, Satoshi Nakamoto, had worked this method that allowed one bitcoin to be mined every 10 minutes. Maintaining this 10-minutes pace is paced with a lot of difficulties when it comes to the real world.
With too many miners attempting to mine the level of difficulty rises. When the number of miners is less than needed, and less computing power is being used, the difficulty level decreases.
Often gaming computers – the ones with high processing power were used for mining. Eventually, dedicated computers and chips were created for the purpose.
One challenge that you'd be faced with while solving the bitcoin algorithm to contribute to the blockchain is keeping your electricity costs low. Only then would your mining sustain and be profitable.
So, can miners across the globe mine an unlimited number of bitcoins?
No. The number of bitcoins is limited, and yes, there will only be a finite number of bitcoins that the world will get to have. The number, to date, has been capped at 21 million.
A word about the Bitcoin Rejoin
The Bitcoin Rejoin is a trading platform for the players in the cryptocurrency market. The automated system is equipped to deal with a lot of things including sales and purchases of bitcoin.
So, the best piece of news is that bitcoin mining would now be possible even without professional skills and prior experience! Bitcoin Rejoin would indeed allow you to grasp all that you need for trading in this growingly popular crypto market.
However, the marketplace is almost overfilled with such platforms and one needs to tell what is what; whether a particular platform is even legit or not!
Is cryptocurrency worth an investment?
Today, cryptos can be used to buy a considerable amount of merchandise, which is a big leap from how things had been even a few years back.
When this currency first came into being, it was expected to work as smoothly as the paper currencies of the nations (from buying a cup of coffee to real estate purchases). Although that has not materialized much, today, there several places (like eCommerce websites or car dealers) that accept this newest form of payment!
Heard of the Bitcoin Cash?
Investors, of late, have also begun questioning whether Bitcoin cash is a good mode of investment. Well, from a certain frame of mind, it could be.
The Bitcoin cash was introduced in 2017 to be functional in the electronic cash payment niche.
Bitcoin cash has enabled the ‘payment’ mode of this currency, rather than just framing it as a ‘store of value’! Whether it serves to be a good mode of investment depends solely on how the cryptocurrency performs in the future.
Since the inception of Bitcoin in 2009, it has been widely considered as an alternative to traditional commodities like cash or gold. The value of bitcoin has appreciated significantly too, thus, drawing the attention of financial experts and investors. However, the bitcoin investment has both strengths and shortcomings. A quick review of them has been documented here.
Bitcoin is a transparent mode of transaction. The process through which bitcoin users have access to the ledger makes it quite a fair investment head.
Usually, the value of Bitcoin tends to rise despite all the market fluctuations. Investors, therefore, have high hopes.
On another front, bitcoin is only a decade old. On the credibility note, it hasn’t scored too big a figure. Moreover, high-risk-takers should deal in a bitcoin investment only. Some are still skeptical – “will bitcoin be worth anything in the future?”
What's the Bitcoin Era?
Did you hear about the much-hyped Bitcoin Era these days? You certainly have (and that’s why you’re here). Yes, the BTC market has now embraced the latest of technologies – artificial intelligence!
The Bitcoin Era is your trading robot that’s AI-powered and uses data from the history of this crypto market itself to find the best trades where your money can be invested. The platform also claims a success rate of 85%!
Bitcoin prediction 2022
From the discussion above, bitcoin had dipped to somewhere around $20k. Well, as of today (the 18th of July, 2022) the world’s largest crypto, hovers somewhere near around $22k. Despite its highs and lows, the craze of investors concerning the Bitcoin leaves us awe-stricken!Some experts are full of hope; they have predicted that this crypto might skyrocket to $1k in the near future!
However, the concern is not ‘when’ but ‘whether’ this digital currency will touch that high. If you want to know whether this is a good time to invest ion Bitcoin, go with your Los Angeles financial advisor’s opinion.
As of now, it would be advisable to wait for a while. Bitcoin has hit the all-time-low that is $20k several times. This happens to be the key price point of the crypto. Since the blunders were only recent affairs, one needs to think before taking the plunge.
Till then, keep your fingers crossed!
Before making major decisions and/or risks with your wealth, seek the guidance of a Fiduciary Financial Planner in Los Angeles. Cryptocurrency investment should be opted for only when the volume of your savings is high, and you invest only a negligible portion of the amount in this currency. You’d be taking risks safely!