If you are wondering what to invest in, then Bitcoin is the way to go!
What is Bitcoin?
Bitcoin is a type of cryptocurrency, and many people see it as digital gold. No one knows for sure who created Bitcoin. What we know is that it was created by someone using the name Satoshi Nakamoto. The Bitcoin code went live on 3 January 2009 and it is now the world’s largest cryptocurrency by market capitalisation.
The good thing about it is it’s not owned by anyone, and it’s free from bank or government control. Instead, an open network of computers across the globe run Bitcoin, and various coders maintain it.
Bitcoin has been, since its inception, the leading cryptocurrency in the market. As at October 2020, it has a total market capitalisation of more than USD $240 billion and accounts for more than 65% of the market capitalisation of all cryptocurrencies.
Is Bitcoin valuable?
There is only a limited amount of Bitcoin in the world. Additional supply of Bitcoin comes into existence by mining ‘blocks’, with each block rewarding the miner with a certain amount of Bitcoin. Miners find new blocks at a rate of approximately one in every 10 minutes. The Bitcoin reward contained in each block is currently 6.25, however this reward is ‘halved’ approximately once every four years. This is why at the time of the next halving, the block reward will reduce to 3.125. By definition, the total amount of Bitcoins in the world will tend toward but never reach 21 million. This means that supply is capped, while the demand for it increases over time.
Bitcoin is the way of the future. Like many other assets, Bitcoin derives its value from its utility. If people use an asset in a way that satisfies human needs, then it has value.
Medium of exchange
Bitcoin has value because people use Bitcoin as a medium of exchange (much like traditional currencies), and also as a store of value. Bitcoin’s utility as a medium of exchange is very evident in developing regions in the world where the financial system is fragile, the cost of cross-border money transfer is high, and capital controls are unreasonable. In those regions, residents often use Bitcoin as a preferred medium of exchange over traditional legal tender.
Store of wealth
Further, many investors and Bitcoin traders view Bitcoin as ‘digital gold’. Bitcoin shares several characteristics with gold, including the fact that it is scarce, divisible, fungible, durable, and resistant to counterfeit. But Bitcoin goes a step further in that it is much easier to store and transport, compared to gold.
Most importantly, Bitcoin’s popularity amongst investors and participants has resulted in its recognition worldwide. Because of this popularity and widespread investment in Bitcoin, its continued growth is certainly foreseeable. So, what are you waiting for!
How do I get some Bitcoin?
Coinstash is the most simple and secure digital currency trading platform in Australia.
Coinstash is a registered digital currency exchange based in Australia. Our customers praise Coinstash as one of the most user-friendly, educational and supportive platforms. Through its live support 7 days a week, Coinstash has accumulated numerous positive reviews from its customers. Coinstash is also one of the only digital currency trading platforms that has participated in Australian government Austrade’s landing pad program.
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