The recent rise in Bitcoin prices has brought excited its market. As this cryptocurrency has provided tremendous results to its investors, people have begun to invest in it like never before. Buy or sell a Bitcoin appeared to be a very tedious job a few years back. Only the techies would wish to do that. But with the surge in its demand and transaction levels, there are a lot of venture capitals and startups that are working on making these transactions as effortless as possible. You must visit roboticsandautomationnews.com and learn more about bitcoin.
What is a Bitcoin?
Bitcoin is the first trendiest digital cryptocurrency across the world. This cryptocurrency can be used to store value and act as a medium of exchange among the people to carry out their transactions like the fiat currencies but in a digitalized form. This cryptocurrency is decentralized in nature, and no specific organization or individual can control or alter it as no entity can control this network.
Why should I invest in Bitcoin?
The introduction of Bitcoin has given birth to an asset class that is new to the global market, a cryptocurrency that is completely functional in nature and is digital. These cryptocurrencies have grown into a new and good class of assets within a decade from their inception. But what does this currency hold for its investors? Why does everybody wish to own a piece of this asset that is scarce? Let’s find out the reasons:
Huge returns and mounting assets
Cryptocurrencies have appeared to be the most top-performing and growing assets of all classes. And out of all the cryptocurrencies, Bitcoins hold a market share of 69% of them all. This cryptocurrency price is highly volatile, and its prices move far away from its average prices almost every hour. This volatility proves beneficial for the investors of the market that have a risk-friendly nature and to those traders who are here to make quick profits and want to achieve heavy returns on their investments.
If you check the valuation chart of Bitcoin, you will find out that this cryptocurrency price has gone from zero to 30 lakh rupees per Bitcoin. The most logical reason behind this price is that more and more investors are trying to hold onto a piece of this currency into their portfolio.
Hedge to inflation
The rise in the prices of all the goods and services in the market across the economy is known as inflation. This decreases the purchasing power that is held by the money. The initial reason to design Bitcoin was to create an asset that is deflationary in nature. The limited supply of Bitcoin and its Halving would act against inflation as a catalyst.
In the earlier days, people would invest their funds into gold in order to hedge themselves against inflation. But people’s interests have started shifting to Bitcoin in the past few years. Even the big investors of the economy, like institutional investors, prefer to invest in Bitcoin in order to hedge their funds against inflation.
How do I invest in Bitcoin?
In order to purchase or sell a Bitcoin in the market, you can use the following methods to do it:
Using Cryptocurrency Exchanges
This is a platform where you can buy and sell Bitcoins and other cryptocurrencies like Ethereum etc. Regulatory bodies like the stock market do not regulate these exchanges, and they are self-regulated. And also, these exchanges are in operation 24*7.
Another source of earning a Bitcoin is Mining. Through this process, the miner will get added to the blockchain network, where they will be reward with bitcoins. Once the miner adds a transaction to the network of blockchain, it gets rewarded with a Bitcoin. This is a highly complex process to mine a Bitcoin.
Peer to Peer Transactions
In case you do not wish to pay any fees for carrying out your transaction or do not want to involve any corporate platform, then you can purchase your Bitcoin through this mode. The platforms will act as facilitators of your transactions by finding a buyer who wants to purchase the bitcoin and assist you in completing the transaction.