What is Bitcoin?
Let me know if this sounds familiar:
You google "what is bitcoin?"
You read an article filled with confusing tech jargon
You google “what is (insert tech jargon)”
You read an article filled with more tech jargon
You close the tab and give up
I’ve been there! That's why I've done all the boring research for you, been down the crypto rabbit hole, and came out the other end to explain it for absolute beginners! This information is just the tip of the iceberg, there is so much more about Bitcoin, crypto, and the blockchain that are SO interesting (at least I think so!) But easy to understand information about Bitcoin is always so hard to come by.
So let’s jump right into it:
QUICK FACTS:
Bitcoin is the worlds most popular cryptocurrency
There is only a limited supply of bitcoins (21 million) after that, no more will ever be created
Bitcoin was created by an anonymous person (or maybe even a group of people) under the name “Satoshi Nakamoto”.
WHAT IS IT?
In a nutshell…
Bitcoin is the world’s first digital currency. Bitcoin allows online payments to be sent directly from one another without having to go through a bank or a third person. That’s why it’s so revolutionary.
WHY IS IT GREAT?
Bitcoin is seen as the first of its kind, revolutionary. Why? because many people believe that Bitcoin is the future of cashless payments. Not to mention, people like that there is no “middle man” to handle the transaction for you. Every transaction is recorded and visible on a public transaction database. This is called “the blockchain” but that’s when things get complicated and we’re sticking to the basics in this article.
You’ll hear a lot of people rave about Bitcoin because it has the potential for BIG growth in a short amount of time.
WHY IS IT RISKY?
All investments hold risk, but since Bitcoin's store of value (Bitcoin’s price) has been very turbulent over the years, it has gained a reputation for being very volatile, meaning the price goes up and down in a very short amount of time - much like a roller coaster.
“It is pretty much the highest risk, highest-return investment that you can possibly make.”
SO…SHOULD I BUY IT?
Before investing in Bitcoin is important to become aware of the risks involved and never invest what you can afford to lose. I invest in Bitcoin and I personally think that crypto is an interesting concept and I’d like to see where it goes. It’s also a great way to diversify my portfolio.
No one can tell you what you should be investing in (except for a financial advisor) so as usual, do your research and start small!
*Disclaimer: The information in this article is for educational purposes only and is not investment or financial advice.