Bitcoin is all over the news again. The largest, oldest and most popular cryptocurrency has recently reached a spectacular new all-time high of over $58,000. Now, everyone seems to be talking about Bitcoin. Banks, hedge funds and investment companies are accumulating BTC as we speak. If it’s not too late for them, it’s not too late for you. Many experts believe that BTC is still massively undervalued, and from this guide you will learn everything you need to make an informed decision about investing in Bitcoin.
Who invented Bitcoin?
Bitcoin was first described in a document entitled “Bitcoin: A Peer-to-Peer Electronic Cash System”, which was published in 2008 by a person or a group of people using a pseudonym “Satoshi Nakamoto”. A few months later, in 2009, the Bitcoin network was officially launched. The crypto revolution has begun.
Soon after that, Satoshi Nakamoto vanished. The fact that Bitcoin’s creator is not around anymore, and that his true identity was never discovered, is considered by many a big advantage of BTC. There’s nobody who controls Bitcoin, and there’s nobody to blackmail or influence in order to compromise the network. Bitcoin belongs to the people.
What is the main feature of Bitcoin?
The most important feature of Bitcoin and the reason why BTC got so popular is decentralization. Traditional fiat currencies such as dollar or euro are issued by central banks which are in total control and can print money as they please. With Bitcoin, there is no central authority. The network consists of independent computers called “nodes”. All nodes share equal rights, but any single node (and not even a large number of nodes working together) can take over control of the entire network.
Why is Bitcoin valuable?
The main reason why Bitcoin has value is the fact that it is a fully deflationary currency. The word “deflationary” means that Bitcoin is immune to inflation, which is what happens when the politicians and central bankers print money. The more money gets put on the market, the less valuable the money gets.
Unlike with dollars or euro, the maximum supply of bitcoins on the market is strictly fixed. The total supply of Bitcoin is 21,000,000, and not a single bitcoin over that limit can ever be created by anyone. While dollars and euro will lose value over time, Bitcoin will become more valuable as the demand grows and as the available supply becomes smaller.
Is Bitcoin still worth investing in?
Many people are hesitant to buy BTC because they believe it’s too late to make a profitable investment. However, Bitcoin’s market cap is still much smaller than the market cap of assets which serve a similar purpose, such as gold. Because of that, many experts believe that Bitcoin can be worth $100,000, $200,000 or even more in the foreseeable future, which means that BTC is still an attractive investment.