Top 10 Things About Bitcoin You Should Know
Bitcoin this year has had a growth of 640%. If you still do not know the characteristics of this currency, here are 10 things you should know.
I have been investing in bitcoins since 2015 and this has allowed me to increase my savings. It is a high-risk investment, unpredictable even for the most expert. Two years after venturing into this world of cryptocurrencies I still see many doubts, speculations and fears; for this reason I want to give you these 10 things you should know about bitcoins.
Does bitcoin have backup?
No, but the rest of the coins either, this is one of the most frequent concerns since it is said that the currencies are backed by the wealth of a country, formerly the value of a currency was backed by gold but this does not happen anymore. If the value of gold does not have a backing, this is given by its use, its scarcity, its usefulness and, as a refuge of value, these are the same reasons why Bitcoin has value, in addition to supply and demand.
Has bitcoin been hacked?
This is the biggest myth, the Bitcoin as currency has never been hacked and neither the blockchain protocol. Hacks related to this currency are linked to wallets and storage platforms, but there are many ways to store cryptocurrencies, not only in wallets in the cloud, but in local wallets, physical paper or advanced storage devices.
Is bitcoin anonymous?
This is not entirely true, it is very difficult to be anonymous because, when you create a wallet, it is in a public registry (Blockchain or chain of blocks). But if you are not being wanted by the FBI or Interpol, nobody is going to know about your bitcoins.
Is bitcoin used for scams and black markets?
Yes, it has been used for illegal things because it is easy to use and relatively anonymous, but it can not be generalized, since the dollar and other currencies are also used in illegal businesses.
Is bitcoin a pyramid?
It is not a pyramid. While there are many scams around the cryptocurrency, it is not a scam. However, fraudulent systems abound around it. When it is time to invest, it is important that you have control of the money, detect early warning signs that it is a scam.
If they offer a fixed return (this is not possible due to the volatility of it), if they have an affiliate system and you win by referring people, if you can not get your investment in a certain time. This is not bitcoin!
Read: How To Buy Bitcoins For The First Time, Step By Step- for Noobs
Can bitcoin make you a millionaire overnight?
Actually it is not so easy, overnight NO. If at the beginning of this year, you had invested 1,000 USD today you would have more than 6,000 dollars, which corresponds to a very good profitability, but you would not be a millionaire. If you had bought in 2009 you would be, but it is not overnight. Although it is an asset that has higher returns than any financial instrument, it requires time for the results to be seen and carries a risk since the volatility of this currency is high.
Read also: The Guide to the 5 Main Cryptocurrencies
Is bitcoin banned in Colombia?
This is an important myth since a few months ago the Financial Superintendency issued a bulletin saying that bitcoin is prohibited in Colombia and few went deep into the subject, in reality when reading this bulletin what we find is that it is prohibited for entities regulated by them, that is, banks and financial entities, individuals can buy, sell and own bitcoin. It should be noted that although it is legal and is not prohibited, there is no regulation on the currency.
It is an investment that I recommend in the long term, warning that as it rises vertiginously, it also has its bad moments in which it falls in a terrifying way and takes time to recover.
For me it has been a great investment and I have made mistakes buying and selling at inappropriate times. It is not an investment to have a capital that you may need in the short term, it is an investment that requires nerves of steel but it is an instrument to make money grow relatively quickly, though, having the knowledge to do it since the opposite can also be lost very quickly.
Read: Bitcoin: What Is It, and Is It Right for Your Business?
Bitcoin and cryptocurrency there are thousands of topics to develop, send your questions and I will be writing more about the subject.