What is Bitcoin Investment?
Bitcoin investment involves purchasing and holding Bitcoin or BTC. It is the first decentralized digital currency. Investors can purchase BTC through exchanges, brokers, or apps, treating it as a high-risk, potentially high-reward asset due to extreme price volatility. It operates on a decentralized blockchain network without Government control.
It involves purchasing and holding the digital currency as an asset for potential high returns. It is considered a digital alternative to gold or a hedge against inflation. It operates on a blockchain ledger and requires no central bank or authority. Bitcoins are highly volatile.
Key aspects of Bitcoin Investments:
- Decentralized Nature: Bitcoin operates independently of governments, banks, or intermediaries, providing investors with direct control over their assets.
- High volatility: Prices fluctuate 10 -20% in a single day, making it a high-risk, high-reward investment.
- Bitcoin uses the blockchain. Imagine a public notebook that thousands of people around the world have a copy of. You can’t erase or fake it.
- 21 Million Rule [Scarcity] There are 21 million Bitcoins. Unlike the Dollar or the Euro, governments can print more whenever they want; nobody can print more bitcoin. Hence, it is called “Digital Gold”.
- Digital wallets are used to store bitcoins.
- The email address is the address to send you Bitcoin. It is called the Public Key.
- Private Key: You have a secret password. If you forget or lose it, your bitcoin is gone forever. Someone else got the key. Your bitcoin is theirs.