Bitcoin is considered a risky investment by some. For those that do take the time to consider the possibilities it presents, the choice to invest is not a hard one to make. When it comes to investing, there are many options available.
Cryptocurrencies are a new form of asset, virtual in nature and issued by no central entity but an algorithm-based protocol. Investing in crypto can be a daunting process, with several coins, concepts & new terminologies to delve into.
When buying bitcoin, the first question to answer is: Is it my ultimate goal to buy real bitcoin or buy a surrogate of bitcoin? And am i aware of the difference? This question is paramount because it determines how I will be able to handle the bitcoin I have purchased.
Bitcoin has a fixed supply of 21 million coins. These coins need to be created and distributed. For this to happen, bitcoin must be mined. Mining is necessary to secure the network & maintain the ledger of transactions.
Bitcoin, as well as Ethereum, are like apex predators in their respective environments, with the potential to evolve further and challenge the other in their respective habitats. Bitcoin is challenging money, while Ethereum takes on the traditional world of finance.
Bitcoin is a decentralized internet protocol, a non correlated, asymmetric investment opportunity, considered by many to be the investment opportunity of a generation. Whether that claim is realised or not, it should be something you should want to understand.