The world of cryptocurrency often carries a reputation for risk. This leaves many wondering: Is Bitcoin a safe investment?;
But let's think about other everyday objects: cars, kitchen knives and even money itself. All carry their own risks, and yet millions of people use them daily without problems.
The essence lies in responsible use.
Bitcoin, in the same way, can be safe if we take the right approach. As we keep knives away from children and use them with care, the understanding of fundamentals of Bitcoin and cryptocurrencies drastically reduces the risks.
Let's slowly go to see more information about Bitcoin.
Table of Contents
What is Bitcoin?
The Bitcoin, the first cryptocurrency, appeared in 2009. The man and team that created it appeared under the pseudonym Satoshi Nakamoto. It aimed to offer a decentralized digital asset as a response to the economic challenges following the 2008 financial crisis.
With limited offer 21 million currencies , Bitcoin has gained incredible adoption, with a market capitalization exceeding $3,60 billion by March 2024.
Now let's see what Blockchain is.
The blockchain works by recording transactions anonymously, authenticated through Bitcoin mining. Bitcoin's Proof-of-Work mechanism ensures the security of the network. Its launch spurred the growth of the cryptocurrency market, revolutionizing fintech with decentralized funding and wealth transfer capabilities.
Why is Bitcoin a safe investment?
While Bitcoin's reputation is often associated with rapid fluctuations in its price, many investors still see it as a safe haven for their funds, especially in cases of long-term investments. What are the reasons that support this view?
Long-term analysis: Contrary to its volatile picture over short periods of time, a long-term examination of Bitcoin's price reveals a steady upward trend. Its course follows cyclical fluctuations, with periods of stability followed by rapid increases.
Rarity: The rarity of Bitcoin, which is due to the limited number of coins that will ever be created (21 million), is one of the main factors that maintain its value. This rarity is enhanced by the phenomenon of "half“, where the reward for Bitcoin miners is halved every four years, further limiting the production of new coins.
Avoiding inflationary pressures: Unlike traditional fiat currencies, which are prone to inflation, Bitcoin is not affected by government interventions or economic policies. Its decentralized nature makes it resistant to inflationary trends, maintaining its purchasing power over time.
Growing adoption: The adoption of Bitcoin by more and more institutions such as BlackRock, businesses and individuals, strengthens its credibility and fuels optimism for the future. The growing demand, combined with the limited supply, leads to a steady rise in its price.
How to buy and invest in Bitcoin
The process to buy and invest in Bitcoin is very easy and you can follow the steps below.
Create Account:
- Visit the site https://www.bybit.com/.
- Click on “Register” and fill in the form with the necessary email and password details.
- Confirm your email and complete the process KYC (Know Your Customer) which will take you a few minutes.
Deposit Money:
- Log in to your account bybit.
- Select “Buy crypto” and you will select your local currency (e.g. EUR) and you will put to buy Bitcoin.
- Select your preferred payment method (e.g. bank transfer, card or google pay ).
- Follow the instructions to complete the deposit.
Bitcoin Security
The security of the Bitcoin network is based on its decentralized nature. As long as there are more miners participating in mining the network remains secure.
Remarkably, in over a decade of Bitcoin's existence, it has never been hacked by a 51% attack. Successfully attacking the Bitcoin network would require collusion between large mining pools, which has not happened.
It is uncertain whether the costs of such an operation would justify attempting to break into the Bitcoin network. The hacking of individual wallets or crypto exchanges with low security measures is often a more viable option for hackers.
Additionally, the energy consumption of the entire Bitcoin network is similar to that of a country like Finland, making an attack on Bitcoin prohibitively expensive.
LIABILITY DISCLAIMER:Cryptocurrency trading Forex is VERY risky. Make sure you understand these risks if you are a beginner. The Information in the post is my OPINION and not financial advice. You are responsible for what you do with your money
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