Investing in Bitcoin: things to consider before buying Bitcoin

in bitcoin •  2 years ago 

Bitcoin is the world's first cryptocurrency and was launched in 2009. It is also the first large-scale application of blockchain technology in the real world. Bitcoin (BTC) is a decentralized network that uses a public ledger to approve transactions, eliminating the need for approval from a third party (such as a bank). In addition, it operates without a governing body, such as a central bank might be, and all changes to the network require the consensus of its members. Although initially the value of BTC was extremely low, valued in fractions of a cent, it picked up steam over the years, reaching price levels of thousands of dollars for a single Bitcoin token and a market capitalization of hundreds of billions.

The Bitcoin chart often exhibits extreme volatility, registering short-term price rises and falls. Sometimes, when the Bitcoin price is up, more people are inclined to buy Bitcoin, further boosting its positive dynamics. On the other hand, when the value of Bitcoin is down, existing investors may feel compelled to sell their Bitcoin and drive prices down. What's more, Bitcoin is considered the barometer of the cryptocurrency space, so it can often generate industry-wide trends.

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