The cryptocurrency has bot rapidly rising ter value
- 12:34, 8 DEC 2018
- Updated 09:17, 11 DEC 2018
With Bitcoin rising te price, more and more people are asking the question: is it right to buy into it?
The virtual currency or cryptocurrency wasgoed valued at $15,061 spil this story wasgoed published on Friday lunchtime.
It sounds tempting – but numerous investors, including Warren Buffett, have voiced concern about the currency’s meteoric rise and volatility, comparing it to the Dutch tulip mania bubble or the Dotcom boom of the late-1990s.
Here’s everything you need to know:
What is Bitcoin?
Bitcoin is the world’s leading virtual currency, operating independently of any canap or central authority.
It wasgoed created te 2009 by an unknown person using the zogenoemde Satoshi Nakamoto, resulting ter a currency that has its own value and is not tied to any physical currency or omschrijving.
Coins are transferred directly inbetween users, and are kept te a digital wallet that can be accessed on a pc or mobile device.
How can you spend it – and how do you get it ter the very first place?
A number of retailers now accept Bitcoin, including Microsoft and the travel webpagina Expedia.
Aside from trading them for goods and services, or buying them on an exchange from existing users, fresh coins can be generated through a process called ",mining",.
This is where software and ter some cases specialised pc hardware is used to to verify others’ Bitcoin transactions.
Bitcoin relies on this zuigeling of decentralised technology – called the blockchain – for secure payments.
Should I buy Bitcoin?
Financial verslaggever Martin lewis told his Money Saving Pro webstek has laid out the potential benefits and drawbacks to getting involved te Bitcoin, reports The Birmingham Mail .
Here are his four tips to avoid being caught out by the craze:
- Don’t invest te something you don’t understand: ",You need to understand how it works spil an investment, how liquid it is (i.e. can you get out when you want to), the level of risk and what can drive the price up and down.", Don’t invest te something purely on the onderstel of a friend’s recommendation.
Where is the request coming from?: Because Bitcoins have to be mined to be created, there are meant to be only a limited number that can be found. Mr Lewis said: ",The fact it’s a scarce resource leads to the assumption that if request rises so will the price.",
It is a big, unregulated gamble: ",If it does well, you could make serious amounts – Ten, 20, 30 times or more what you waterput ter, or just spil possible, if it goes badly wrong, you can lose everything.",
Don’t fall for scams: ",I would certainly be worried about investing ter a company that I’d just spotted because it’s advertising on Facebook, especially if it makes it look like a no-lose option.",
The bottom line is this – do your research, and do your best to overeenkomst with a legitimate Bitcoin seller if you determine to buy.
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