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5 Things You Must Know About Bitcoin

While the concept of internet currency was once a laughable prospect, the current reality could not be any more different. Today, cryptocurrency is one of the most popular methods of payment throughout the world and is used by millions of people to process their transactions each day. It is also arguably one of the most lucrative investment opportunities for people who are looking to invest in things that will continue to retain their value long-term.

Bitcoin is by far the most popular form of cryptocurrency in the world. In just over a decade, it has overtaken the far reaches of the internet and is being quickly accepted by major and minor retail outlets both on and off the internet. With Bitcoin increasing its stronghold in the digital landscape of today, here are the five things you should know about it.

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High Volatility

Bitcoin is a volatile currency and has undergone dramatic changes within the past year. According to some estimates, the price of Bitcoin dwindled more last year than the entire stock market during 2008, the year of economic recession. It is advisable to keep this in mind when investing your money in Bitcoin.

Finite Supply

There is a limit to the total number of Bitcoins that can be mined. The maximum limit is 21 million Bitcoins, and data from the start of 2021 reveals that there are only 2.4 million Bitcoins yet to undergo mining. The finite supply of the currency creates an increased demand, which in turn drives the price of the currency.

Permanent Record

The Bitcoin framework is based on blockchain technology. Each transaction performed using Bitcoin is stored permanently in the blockchain forever. Therefore, there is a permanent record of each transaction, no matter how big or small, meaning that transaction disputes or financial scams/frauds are highly unlikely.

Bitcoin Wallets

All your bitcoins are stored in digital wallets that can be accessed from any internet-enabled device of your choice. These wallets are highly secure pieces of digital technology that protect your crypto coins from any malicious attacks and are password protected. While it is possible to have conventional passwords, hardware keys are highly secure methods of access to your Bitcoin wallets. It is important to remember your password because more than 20 percent of all Bitcoins have been lost permanently due to users forgetting their passphrases.

Increasing Acceptability

As the demand and valuation of the currency continue to skyrocket with each passing year, more and more financial institutions and consumer brands/companies are rushing to officially accept it as a valid method of payment. Similarly, some of the top financial advisors in the world are treating Bitcoin as a highly valuable commodity, just like valuable metals (gold, platinum,

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