Bitcoin has grown in popularity dramatically since its appearance on the market 11 years ago, and it is the most expensive virtual currency today.
The Colombian website Financas Personales, in a report on the world's most prominent digital currency, says that interest in entering this market and investing in Bitcoin has increased significantly in recent years.
And reviews expert Juan Pablo Zuluaga, founder of the "Miss Probias Finanthas" institute for financial education and personal finance, the most important information that you must know before investing in this currency.
What is Bitcoin?
According to the Bitcoin website, this coin is a consensus network that enables a new payment system and a completely digital currency.
It is a decentralized payment method that does not need an intermediary, and it relies on computer mathematics technology.
This virtual currency appeared after the 2008 crisis, and the creator of bitcoin is known by a pseudonym, Satoshi Nakamoto.
How it works?
"At the moment, there are more uses, and it works very well in transactions with large amounts and between countries," says expert Zulwaga. "Bitcoin has a great value in the market ... at any time you can exchange Bitcoin for dollars and buy what you want later."
There is now a wide market in which cryptocurrencies are used, and many companies have already started dealing with Bitcoin.
For example, you can buy airline tickets, make a hotel reservation, or dine in a restaurant and pay with Bitcoin.
According to Colombia Fintech, more than 20 companies and institutions in Colombia accept Bitcoin, for example, in areas such as tourism, food preparation and digital services.
The daily trading volume is estimated at 500 thousand dollars.
Bitcoin value fluctuates
Zulwaga explains that one of the most prominent criticisms directed at this digital currency and what limits its widespread use is the fluctuation of its value. “It is difficult to set a fixed price for things in Bitcoin, but without a doubt it is really an asset that we can find in many places today,” he says. .
Do I need thousands of dollars to buy bitcoins?
The same expert explains that buying Bitcoin does not require investing thousands of dollars, as the currency is divided into smaller units known as satoshi.
Bitcoin units can be purchased for 50, 100, or 1000 dollars, and you do not need to buy a full currency for 31 thousand dollars (the value of the coin is on January 27, 2021).
The importance of learning the principles of investing in Bitcoin
There is a lot of information circulating about Bitcoin on the Internet, but investors in cryptocurrencies often do not know how this market works and what capabilities they have, according to Zulwaga.
According to him, many people invest with an easy profit mentality, and he considers that buying the currency may bring them double profit after a few months or weeks.
Zulwaga believes that behind Bitcoin a wonderful world, and that this currency may mark a difference between today's world and the next few years, but on the condition that people better learn the principles of investing in this field, and know that the goal of creating virtual currencies is to speculate or make money easily.
Benefits of buying Bitcoin
Benefits of buying Bitcoin
Bitcoin has become a good alternative for investors and part of their portfolios, and it is a tradable and divisible currency used to conduct international transactions without the need for intermediaries, and it has become increasingly attractive in recent years.
Zulwaga believes that Bitcoin is a good solution to preserve value in anticipation of high inflation rates in traditional currencies, as "Bitcoin is characterized by deflation, which makes it a guarantee of future value."
Is Bitcoin a safe currency?
Zulwaga believes that "Bitcoin is extremely safe" but you have to know how to use it and how to trade it.
They have tried to hack Bitcoin over the 11 years since its inception, and have tried to copy it more than 6,500 times, but all of those attempts failed, says the same spokesman.
And just like anything else, you just have to be wary of those who take advantage of the opportunity to cheat, deceive people, and broadcast illusory hopes of a quick and easy profit, Zuluaga adds.
It is noteworthy that it has not yet been decided whether Bitcoin is a safe currency or a bubble of luck.
At a time when the most famous digital currency witnessed rapid jumps, boosted by investors' desire to make a quick profit, history also witnesses its sharp collapse in a number of stations.