BTC is an online digital currency, just like a dollar or a pound but with a few exceptions. Introduced by Satoshi Nakamoto in 2009, BTC engages in a peer-to-peer payment system where no intermediaries exist and goods can be securely transferred between any two people on the planet. It is associated with a heavy network of computers and the unit of currency for the BTC system (appropriately called BTC) can be simply acquired by joining the vast network. BTC provides a fast cheap and secure transaction alternative but few are willing to take the jump for it. So the one million dollar question still lingers, is BTC a secure investment?
BTC is only a few years old, an interesting creation that has awed many and for the record, has attained a name in the top financial charts. Its popularity has spanned and it has led some of the top businesses like Virgin Galactic to consider it as an acceptable source of payment. BTC prices increase at rates of up to 10% and continue to dominate as the alpha of the market and this has made many interested in investing in it.
Another special feature of BTC is that it does not have a central bank and neither does a central government control it. It’s a global currency and its creation and existence lies behind a complex and geeky mathematical algorithm that enables it to shadow government related mishaps. Cases of political instability and government absurdities that plunge the economy down to shame and lead years of investments in a currency down the drain do not occur in the crypto-currency system. This creates a secure and friendly investment opportunity with low inflation risks.
With an ever-amazing upside, crypto-currency also has its downs. As mentioned, this thing is still taking baby steps; and with that comes great uncertainties. BTC prices are volatile; currently increasing sharply and can fluctuate at 30% to 40% in a month. The world is still surprised at its emergence and there exists very few BTC holders and BTC. This leads to unanswered questions and cold fear among people as investing in a new unpredictable ‘gold mine’ can yield devastating effects. Its newness brings forth lack of regulations and scares off potential investors.
The enigma surrounding the BTC system is a major factor to be considered. Anything can happen and everyone participating in the BTC market is on a high alert. China in December 2013 eliminated the use of BTC and this led to a drastic drop to its value from $1240 to $576 in just three weeks. Programmers also determine the functionality of this global currency and many question the thought of risking their finances for some group of geeks. This prevents many from venturing into the system and increases the risk of BTC investment ever so highly.