Understanding Bitcoin And BTC
Investors are always in pursuit of higher returns, and Bitcoin might just be the solution. Launched in 2009, Bitcoin is the first cryptocurrency conceived with the idea of real-world applications. Once presumed to be merely an alternative currency, Bitcoin turned out to be a lucrative investment opportunity following the unprecedented rise in its value.
Bitcoin is built on blockchain technology, and BTC is its trading symbol. Blockchain is a digital ledger, which keeps track of all the Bitcoin transactions. It consists of a chain of blocks, encrypted end-to-end with cryptographic keys or hashes. The blocks are made up of Bitcoin transactions that await confirmation from the miners’ ends to avoid any possibility of double-spending. Several users or investors are now investing in Bitcoin as Bitcoin continues increasing its value. And if you are planning to invest in Bitcoin. Bitcoin Code is an innovative or unique way to invest in Bitcoin as it is an automatic trading software & it is also considered as the most reliable & popular bitcoin trading robot. You can check out a Fair Review of Bitcoin Code to know more about this trading platform, tools, and features.
Unlike traditional currency, no central authority regulates Bitcoin. Besides, limited supply gives Bitcoin the store of value and determines its price based on the demand. Consequently, it becomes a highly volatile and speculative investment. This uncertainty raises a simple question – should you invest in it ahead of retirement planning?
Some Interesting Facts About Bitcoin
- The inventor of Bitcoin, Satoshi Nakamoto, who also published the Bitcoin white paper, is pseudonymous. While some believe that he could be a person, others suspect it to be a group of people.
- Satoshi Nakamoto’s Bitcoin wallet holds a record of 980,000 Bitcoin.
- Bitcoin has a fixed supply limit, i.e. 21 million Bitcoin, and is suspected to last till 2140.
- Bitcoin’s first transaction took place on May 22, 2010, when Laszlo Hanyecz purchased two pizzas from Papa John’s for 10,000 Bitcoin (worth $41). Subsequently, every May 22 is celebrated as “Bitcoin Pizza Day.”
- A satoshi is the smallest unit of Bitcoin, and its ratio is 100,000,000:1.
- Every Bitcoin wallet is secured with the help of a private key. If lost, one loses all their Bitcoin.
- The Bitcoin address conceals the identity of the Bitcoin holder.
- Bitcoin can not be banned but regulated.
- Bitcoin can buy anything of value.
- Like fiat currency, Bitcoin has ATMs too.
- A Bitcoin network consumes more processing power than 500 supercomputers combined.
- Bitcoin transactions are irreversible.
- Bitcoin is the official currency of the Free Republic of Liberland.
Why Should You Invest In Bitcoin?
Bitcoin prices have increased exponentially over the years but are highly unpredictable. The growing adoption of Bitcoin and the economic instability prove it to be a reliable investment strategy for retirement planning. Here are a few reasons why investing in Bitcoin is a wise choice.
- Hedging Against Inflation – Bitcoin is a deflationary currency, and its value increases or decreases depending upon its demand and supply. Like gold, it is considered a safe asset, which is perfectly suited for hedging against inflation.
- Controlled Supply – Bitcoin’s supply is reduced to half (halving) every four years to control the supply. Trends suggest that the previous three halving events (2012, 2016, and 2020) resulted in the bullish Bitcoin market (post-halving bull runs).
- Institutional Acceptance – The cumulative investment flow in Bitcoin and its security features have compelled corporates like Microsoft, PayPal, and Dell to integrate it as a payment method.
- Scarcity and Growth – Since bitcoin is scarce, investors fueled investments in Bitcoin, generating an annualized return of over 200%.
Advantages Of Adding Bitcoin To Your Investment Portfolio
Having a diverse investment portfolio could be a savior for those with low-risk tolerance during economic crises.
- The sharp fluctuations in its price could yield high returns on retirement savings.
- Like precious metals, Bitcoin holds a high monetary value that corresponds to its increasing demand.
- The historical price analysis of Bitcoin for the last ten years shows that the returns have been far higher than stocks, bonds, or real estate.
- Bitcoin has been backed by business tycoons, tech giants, and celebrities, thus adding to its credibility and growing visibility.
Considering bitcoin’s ever-increasing acceptance, the possibilities of it going mainstream are significant. Apart from its global approval as a legal currency, bitcoin shows strong potential in attaining profits. Bitcoin can certainly be acknowledged as a beneficial source of investment for pre-retirees.