Many of you might have heard about a new kind of currency known as Bitcoin. Well, this is basically a new kind of digital currency. This currency is not just valid for a single state or country, but actually, it is accepted anywhere in the world. AS this currency is not just controlled by a single organisation or government. This currency has grown much popularity around the globe, and it is accepted by all merchants. Due to this, you can easily buy stuff online and get the services as well. Not just this Bitcoins are also accepted in some physical stores to buy stuff. Furthermore, if you want to trade currency, then you can easily find Bitcoin exchange around you where you can trade for Bitcoins by other currencies. Don’t forget to read xCoins.io review before investment in Bitcoin.
Difference between Bitcoin and other Currencies
As we all know that in traditional currencies like US Dollars, Euro, Pounds, and Rupees etc. for their transaction, it is necessary that they have to go through authorities. And those authorities like Banks charge their own taxes over the transactions for the currencies. Well in the case of Bitcoin there is no authority involved in it. SO it is obvious that there will not be any chance of transaction tax. As transactions are made from user to user. Just like different wallets are used for the currency transactions like PayPal, in the same way, Bitcoin wallets are also available where it is saved by the users, and from there these Bitcoins are traded to the users.
Manufacturing of Bitcoin
Every year there is a limited amount of Bitcoins which can be traded. And holders of Bitcoins are strictly prohibited to exceed this amount. The reason behind this is that to generate a single Bitcoin is not an easy task to do. These coins are generated by Bitcoin miners, as they have to solve many algorithms in order to generate this currency. And from time to tome it is becoming very difficult to solve these algorithms. As the transaction is limited for everyone, so it makes this currency more precious. Basically, there are Bitcoin algorithms which are required to be solved by the miners using different mining software. As a result, then these miners are paid for solving these Bitcoin algorithms.
All the transactions which are made via Bitcoins are recorded, where they hold the records of the Bitcoin owners as well. The reason for this is that as this is a digital currency, so people use a single Bitcoin for multiple times as well. So once the transaction has been made then all the data for it is then recorded. In order to prevent any sort of fraud. Furthermore, as this currency has no protection by authorities of government agencies. SO if ever your system gets hacked, or due to some other problems, all your computer’s data is lost. Then there is no way to recover your Bitcoins. This is one of the major drawbacks of using this currency.
Still, no one can deny the many other advantages of Bitcoin Investment. As if you are making any kind of sale purchase, there is no chance that your identity is revealed, and in this way, you always stay anonymous. In short, if you are the user of Bitcoin then you are the operating this whole network for Bitcoin, while other than you there is just Bitcoin miners who are managing this network. Right now a single BTC is equal to 2577 US Dollars. And as more number of user will increase then the value of BTC will also increase from time to time. It is observed that from past some years the value of BTC is increasing without getting a single downfall, and with the Bitcoin Investment, you can surely earn more than you can imagine in coming years.
As we all know that users of Bitcoins will remain anonymous, so they can buy anything over the black markets. As a research of US government that in 2012 almost 20% of the sales of drugs from the online black market is done via Bitcoins. There is a very famous online black market for drugs, and government always have their eye on it, due to recent activities via BTC. Plus the users of Bitcoins are using this currency in order to make a high amount of transactions without paying a single penny of tax. Which is 99% true as this currency is made to avoid the interference of government agencies.
Due to all these reasons, some countries have totally banned this currency, and no trading of Bitcoins are to be made over there. While there are countries which have some laws applied to the users of the Bitcoins that no Bitcoins are to be traded for the purpose of transactions? While there are places where the amount of Bitcoin to be delivered has been limited now. Due to all of these rules and regulation, it seems to bring the value of Bitcoins downwards. Plus the government is also trying to shut down the Bitcoin wallets, and once they are shut down. Then there will not be any access to those BTC, and automatically the value of BTC will fall gradually.
Due to so many drawbacks and limitations of the use of Bitcoins, there would be many among you that there is no use in Bitcoin Investment. Still, you cannot judge Bitcoin Investment over just some reasons because there is no other safest way of transaction than Bitcoins. Plus you can keep these coins, and just wait for its value to rise, and once when it happens, then you can trade them for US dollars. Moreover in the past times, and even in some places now as well usually Gold was kept as an investment.
More and more of number people were buying it, in a way that they buy enough gold with their savings. And when the price of Gold rises then they just simply sells it. Still, it was not an efficient way of investment because from time to time the shine of gold decreases. And due to that, you have to lose some money over that as well. While in the case of Bitcoins you can keep them for as long as you want, as this currency is also available in physical coins as well. SO you can keep them to yourself till as much as you want them. And it seems that in coming years this digital currency would be the most expensive currency of the world.
Invest as much as you deserve
So this is the time when you can put all of your investment in purchasing as much Bitcoins as much you can for the future use. And whenever you will be in need of some money then these coins will give you with the greater benefit as compared to Gold. As it is said that “Buy Low and Sell High”, so just use this strategy, and make your investment in Bitcoins rather than Lands or Gold. Remember that never make the investment more than you need, because who know that if your system gets hacked, or your Hard Drive gets damaged. And always save some of the real money as well for such situations.