7 Things You Need To Know Before Investing In Bitcoin

Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Since the introduction of Bitcoin in 2009, the price of the cryptocurrency has soared. It is now worth 1,265,264.00 in Nigerian Naira and $3,476. In fact, it is more valuable than gold ($1,300). Due to this, many are encouraging others to invest in the cryptocurrency. Trust some Nigerians, they are very slow in accepting Bitcoin. This is probably because they do not really know much about it. Thankfully, you are in luck as we share the things you need to know before investing in Bitcoin.

More people are using Bitcoin

Despite the fact that some Nigerians are struggling to accept Bitcoin, more people are embracing it after years of gradual growth. Hence, whether we like it or not, Bitcoin is the future and we have no choice than to use it.

Retailers and vendors are accepting Bitcoin

You can now pay for whatever you purchase online with Bitcoin as some retailers have made it possible to settle transactions with it. Some notable companies that accept Bitcoin include Expedia, Microsoft, Subway, Newegg, TigerDirect, Tesla and PayPal. So, do not be surprised when some Nigerian companies start to accept Bitcoin.

Bitcoin transfers are fast and flexible

While many financial institutions charge you or take days to process transactions, Bitcoin allows transfers from one account to another almost for free. Of course, you must already have your money in Bitcoin form. There is no need for any middlemen. As a result, the transfer is seamless.

Bitcoin has a long way to grow

While many tech experts are elated about the future of Bitcoin, the truth is that the currency is still growing and has a long way to go. Regardless, business enterprises are slowly fathoming the potentials of connecting with Bitcoin, and individual consumers are becoming more comfortable with digital currencies.

Extremely volatile

Bitcoin is still growing like earlier mentioned and there are a number of market factors that influence it. It very dependent on the rules of demand and supply. The more people are willing to buy Bitcoins, the more the Bitcoin value will increase. Conversely, if more people sell, the prices will decline.

Bitcoin is not anonymous

One wrong notion that people hold about Bitcoin is that you can transfer the money anonymously. This is absolutely wrong. As far as your public address is visible to anyone, your cover has been blown. In fact, for every transaction you make, your account balance is visible at the Blockchain website.

Treat it as Speculating, not an investment

Cryptocurrencies have a bright future as a new way to conduct commerce and business. That is not the same thing as saying that their value right now is sustainable. It’s early days yet, and, while the number of businesses accepting cryptocurrencies are growing, it’s not big enough for most of the demand to be built on legitimate trade. This means that buying cryptocurrencies is speculation, not investment. Hence, you should be willing to lose the money you invest in buying Bitcoin!