|Author: Ratnesh Sharma 30 Jun 2016 Member Level: Silver Points : 2 (Rs 2) Voting Score: 0|
Bitcoin is a cryptocurrency and is a highly volatile one. While investing, one must consider the long term implications of the investment as the rates earlier went to as low as $50. Now if you are poised for long term investment, you may expect a periodic upsurge in prices and may want to pull back to materialize benefits but still Bitcoin is highly uncertain and is not dependent on market forces.
The factors which determine its rates in the market are still unknown at large and thus makes it a highly risky investment. However if you are into taking risks, it may be worth it if you are lucky enough as it went to as high as $1.2k in recent years.
My advice would be to play safe and get some other hot field to play.
|Author: Partha Kansabanik 30 Jun 2016 Member Level: Diamond Points : 3 (Rs 3) Voting Score: 0|
Bitcoin was conceptualised by Satoshi Nakamoto as a digital currency, which can be transferred across borders in a manner completely bypassing the current banking system. This has been a ground-breaking innovation. Bitcoins come into existence when they are 'mined' digitally, the mining process consisting of solving a complex Mathematical problem and the solution acknowledged by the community. Bitcoin mining requires the use of scarce resources, i.e., computing power. Miners are rewarded with freshly created bitcoin when they are successful in solving the math problem. The system is designed in such a way that there will never be more than 21 million bitcoins in existence, out of which 14 million bitcoins have been mined so far.
A currency is considered good only if it is accepted for exchange. Bitcoin is gradually gaining value because people have started accepting it in exchange for goods and services. Now many digital goods retailers accept bitcoin. There are some companies which offer bitcoin based credit cards.