If you’ve been on the internet chances are you’ve heard of Bitcoin. But it can be a bit of a tricky subject, so today we’re here to explain all the technical details! And that’s not all, read on to find out the price in 2020 and if you should invest in it.
What is bitcoin?
is a global, digital currency, also known as cryptocurrency. It was invented by Satoshi Nakamoto. It allows you to receive or send money across the internet, even to a stranger! Interestingly, money can also be exchanged without being linked to a real identity. From a user perspective, it is just cash for the internet.
How does it work?
It’s easy to understand how it works. Each bitcoin is essentially a computer file. This file can be stored in “a digital wallet” app on the device of your choices, such as a smartphone or computer.
People can send it to your digital wallet, and vice versa. Every single transaction is recorded in a public list called the blockchain.
Are bitcoins safe?
Even though, it is purely digital. There are ways to keep it secure in analog form. You can use paper wallets to store offline. This significantly decreases the chances of your bitcoins being compromised and stolen by hackers or computer viruses.
Several elements secure from theft. Cryptography controls the creation and transfer of all cryptocurrencies. Bit coin’s use of a distributed ledger known as blockchain gives owners a record of all their transitions that cannot be tampered with because there it is tightly secured. However, the exchanges are not regulated by the government, and they generally do not provide enough insurance and security as a bank would.
In conclusion, keeping it secure is a complex job that takes a lot of time. but well worth the trouble if you have a reasonable number of it.
Advantages and disadvantages
Although have several advantages, they are not without their share of letdowns. they assures you high payment freedom, transparency of information, reduced risks for traders, and high security.
But on the other hand, have proven to be volatile. Bitcoins are not perfect and often come with a lack of notification and understanding of the developing functions.
Price prediction 2021
Like we said, bitcoins are very volatile. The prediction varies from day today. Have every expert believe they can safely predict the expected value of bitcoin.
Bitcoin’s value has lingered around $10,000 for most of 2020. But there are chances of the prediction for the latter half of 2020 to be positive. An expert at Bloomberg Crypto Galaxy Index ( BGCI ) reports, the price may reach $20,000 before the year ends.
The coronavirus pandemic is expected to increase the usage of digital currency, which is why this prediction is being made.
Similarly, bitcoin enthusiast, Anthony Pompliano believes bitcoin’s value, will reach $100,000 by the year 2021.
However, there are some skeptics as well, Ki-Young Ju is of the opinion, that Bitcoin’s price will drop. He argues that people have taken advantage of the coin’s high cost but have transferred the money to other exchanges. He asserts that there are high chances that these people will be cashing out soon, ultimately leading to a drop in the price.
We hope you found the article useful. Ultimately the decision to invest or not is your own. But we can safely tell you, it looks promising.