BITCOIN – What Is BITCOIN – How It Works – BITCOIN Review
If you want to know what bitcoin is, then you are watching the right video. We will tell you how this cryptocurrency appeared, explain in clear language how it works and why bitcoin now occupies a leading position in the cryptocurrency rating. If you want to find out how people earn millions of dollars with it, then watch our video to the end, we will tell you a few secrets that will be useful to you. We will leave you a link to buy BTC under the video. Don’t forget to subscribe to the channel and like it. Don’t switch, it will be interesting!
Bitcoin is the most famous cryptocurrency in the world. Initially, the term was used by a narrow circle of people, but after the popularization of blockchain technology and the explosive growth in the value of digital money, many learned about it.
It is an electronic user payment system similar to digital wallets and bank accounts. The main unit for settlements on the network is bitcoin. Digital coins, unlike traditional money, are not tied to the economy of any country or to the central bank. All actions to issue new money, process payments and create accounts are done by users.
Bitcoin may be a relatively new asset, but it has generated huge profits almost every year of its existence.
More broadly, BTC proponents believe that its fixed supply makes it an ideal way to store wealth and that it should grow significantly over the long term as more institutional investors accumulate in it – investment banks, mutual funds, retirement plans.
Each bitcoin is a computer file stored in a digital wallet on a computer or smartphone.
To understand how cryptocurrency works, it is helpful to understand these terms and a little context:
Blockchain: Bitcoin is powered by an open source code known as blockchain, which creates a shared public ledger. Each transaction is a “block” that is “tied” to code, creating a permanent record of each transaction. Blockchain technology is at the heart of over 6,000 cryptocurrencies that followed Bitcoin.
Bitcoin is an incredibly speculative and volatile buy. It’s worth remembering that stock trading can give you a similar thrill – and choosing stocks in well-known companies is generally less risky than investing in bitcoins.
There are four ways to get Bitcoins:
Cryptocurrency exchanges. There are a number of exchanges in the US and abroad. Coinbase is the largest cryptocurrency exchange in the US, trading over 30 cryptocurrencies.
Investment brokers. Robinhood was the first major investment broker to offer bitcoin and other cryptocurrencies. Tradestation, eToro and Sofi Active Investing also offer cryptocurrency trading in most US states.
Bitcoin ATMs. There are over 7,000 bitcoin ATMs in the US.
The value of bitcoin obeys the law of supply and demand, and as demand rises and weakens, the price of a cryptocurrency fluctuates a lot.
Besides mining bitcoin, which requires technical expertise and investment in high-performance computers, most people buy bitcoin as a form of currency speculation, betting that the value of one bitcoin in US dollars will be higher in the future than it is today. But this is difficult to predict.
If everything is clear with “ordinary” money – you either hold cash in your hands, or you have a bank account, which, if you omit conventions, stores and transfers this very cash for you. With bitcoins, things are a little different.
The cost of a cryptocurrency directly depends on the level of user confidence, the number of people willing to buy an asset and market sentiment. Bitcoin’s price is volatile due to political uncertainty and constant bans. The negative news background from the USA, Russia, China and the EU affects the behavior of investors.
Despite the large number of stories about successful investing in bitcoin, study all the possible risks before buying an asset. The main factors include:
Price volatility. The cost of bitcoin fluctuates daily and can change by 10-15% up or down. Such volatility provides opportunities for earning, but can lead to loss of money.
Uncertainty of regulators. The governments of many countries are unable to develop a legal concept for the status of digital money, a taxation system and ways to declare assets. Bitcoin is a new class of financial instrument, which is encouraged in some countries, and prohibited in others.