How to invest
Most first time investors choose Bitcoin, a digital currency created by hacker Satoshi Nakamoto. Its clandestine origin as a method of paying for goods and services on the dark web has since been overshadowed by its near ubiquitous popularity among bedroom businessman and other millennials caught up in the fever dream of what they perceive to be the first steps in a post-hard currency world.
As a mineable coin you could say that Bitcoin depends upon its miners (users). By mining the blocks within the Bitcoin ecosystem, miners are actually validating transactions, that way also earning profit along the way, as miners will deduct fees for verifying and processing your transaction.
Just like investing in stocks and shares with your capital as traders do at Canary Wharf or Wall Street although most people consider Bitcoin as more comparable to gold and those that invest in it. It’s volatile, costly to use and deflationatory and according to most experts the scenario in which we start buying groceries or paying our rent in Bitcoin is not only a long way off but unlikely to ever happen. So what’s the point?
The main draw is that it’s new, a brand new buzzword and plaything for us to gawp at and daydream about. It sounds silly but the truth is the magpie-like attitudes of human beings can be trusted to thrust this currency, currently in its embryonic stage to a fuller, more prosperous future for investors.
Its volatility means that even if there was a slump, things could always improve again. In fact many experts believe that crytocurrencies like Bitcoin and on course to finish the financial year strongly.
As it’s already been explained Bitcoin is extremely volatile and therefore could swell to a monstrously uneven scale. It is likely to put off those averse to risk taking. If you are new to investing, Bitcoin may not be the right of passage you assume it’ll be. The risks (and reward) are far greater than more traditional forms of investment. Things can change in a flash.
Furthermore the regulators in charge of the large countries like China or The United States have a huge impact on most cryptocurrency’s value. China publicly condemned it in 2017 and the value of 1 Bitcoin went from $5,000 to $4,000 in a matter of hours.