We have seen El Salvador and the Central African Republic adopting Bitcoin for official use. Most of these Bitcoin trading platforms operate like Bitcoin is a buzzword. The word ‘Bitcoin’ floods the internet and mass media outlets making it more familiar to people worldwide. Bitcoin is a cryptocurrency or digital currency. Consider it as a type of virtual currency that you can use to transact. However, unlike fiat currency, Bitcoin doesn’t exist in physical form.
Being a decentralized digital currency, Bitcoin is not under the control of the government or any other single entity. Users can mine, buy, and sell Bitcoin through blockchain technology without a third party. More importantly, Bitcoin is a digital asset different from traditional investments like bonds, stock, and gold.
Despite its newness and high volatility, many investors are investing in Bitcoin. Bitcoin’s uniqueness as a digital asset makes it attractive to investors. The price volatility of Bitcoin is one of the unique factors. Many investors are investing in Bitcoin because they expect the prices to rise. When the price rises, they can then sell for a profit.