Since its introduction in the 2009, the financial world has discussed the opportunities and risks associated with the emergence of Bitcoin.
Meanwhile, digital currencies have developed from a marginal phenomenon and from a speculative object for a few experts to a widespread and serious dimension in the financial market.
In the recent past, Bitcoin has recorded an immense amount increase in value, but suffered almost as many losses.
The question arises as to whether Bitcoin and other cryptocurrencies have the potential to secure a reliable place in the financial market and can be considered a viable investment alternative for newcomers and smaller investors.
What is Bitcoin?
The term Bitcoin is composed of the English words "bit" ("binary digit") and "coin" ("currency").
The concept of digital currency has been described by the author Satoshi Nakamoto in a "White Book" the 31 October 2008.
Nakamoto is not a real person, his name is probably a pseudonym or represents a group of people.
The digital currency is exchanged "peer to peer", Ie directly between users without the help of banks. This is made possible by the use of technology blockchain: within the system, all transactions are stored several times and in a decentralized way.
The advantage of cryptocurrency is to enable a monetary system that operates independently of the banks and which is less expensive e faster of previous transactions.
Investing in Bitcoins
The Bitcoin seems to have "woken up from hibernation" in recent days, according to some experts, and has shown a truly incredible and stupefying uptrend.
For example, Bitcoin has increased by a respectable 11% in the last hours and up to 35% in the last week see Bitcoin quotation .
Today, February 27, 2020 the Bitcoin price is 8.924,73 US dollars or 8.141,06 euro.
Now many investors rightly wonder whether it makes sense to buy Bitcoins. Depends on the time horizon!
For those who are oriented to a long-term investment, the current Bitcoin price could be quite tempting, after all, the criptovaluta of Satoshi Nakamoto is still a good 60% below the historical maximum.
For the short-term investorshowever, pursuing this result could be very risky. Of course the profit is not excluded and it is possible that the price will still increase.
However, for both investment horizons, it is now the "best" time since April 2018 to buy Bitcoin.
Another great way to invest in bitcoin is to have automated trading robots like Bitcoin Revolution o Bitcoin Prime who do the operations for you. It has been said that many celebrities have used these trading platforms to make many daily profits.
During this time, it was possible to buy Bitcoins (see the guide how to buy Bitcoins) at lower prices than the current ones: this means that by investing you receive less Bitcoins for one euro.
How to Invest in Cryptocurrencies?
Is an investment in Bitcoin still worth it in 2019? Which investment strategy currently makes sense? And how big is the risk?
And investing in long-term or rather short-term cryptocurrencies? How to invest in cryptocurrencies? In which cryptocurrency do you invest in 2019? Which Blockchain solutions promise the most?
As with stocks, real estate and gold, choosing to invest in cryptocurrencies is a well calculated decision that should not be forced or rushed.
Which Cryptocurrencies to Invest in? Why are there cryptocurrencies?
The goal of the first cryptocurrency, Bitcoin, was simply to create a payment system that worked without financial institutions to allow consumers a certain degree of self-determination and information anonymity.
As a result, Bitcoin has also been used for illegal and illicit payments. Meanwhile, Blokchain's technology has been expanded and improved, so cryptographic currencies can now be used for monetary transactions like a safe, fast e convenient alternative for the transmission of sensitive data.
For example, the United Nations World Food Program uses the Ethereum Blockchain in a pilot project to distribute resources to refugees.
The organization issues food stamps through the Blockchain and interested parties can pay in a refugee camp with an iris scan.
In this way, financial resources go directly to the needy and corruption is no longer a problem for the organization.
What Cryptocurrencies are in Circulation?
In 2009 the first and most famous cryptocurrency emerged, which led to the birth of many others alternative currencies,
even if in terms of market capitalization it is always the first crypto, at least until today.
Litecoin was announced in the 2011 as an alternative to Bitcoin. In the digital currency market, Litecoin is often referred to as "silver" and Bitcoin as "gold".
Litecoin is considered silver because the Litecoin network is able to handle transactions four times faster than Bitcoin.
Moreover, the total offer of Litecoin is of 84 million coins, while the total offer of Bitcoin is limited to 21 million units. This quadrupling in the number of units means that Litecoin's potential inflation rate exceeds that of Bitcoin.
Bitcoin's main competitor is theEthereum , created in the 2013 by the nineteen year old Vitalik Buterin. Ethereum is based on Blockchain but is more powerful, introduced the "smart contracts"And pursues a different objective: it does not want to be a real currency for sale and purchase but is oriented to build entire organizations on an electronic and decentralized basis.
Ethereum is the basis of most of the so-called Initial Coin Offerings (ICO) and many of the cryptocurrencies that exist today.