Bitcoin is a digital cryptocurrency that was created in 2008 and it helps to make the purchase anonymous by the buyer. It doesn’t require any central authority and it can be operated in a free-way. However, in 2017 the price of bitcoin increased rapidly and seek the attention of many investors and many people bought free btc only because of making profits and for investment purposes.
The bitcoin extraction
Buyer can obtain bitcoin by 3 processes which are, the creation of bitcoin takes place through mining it refers to solving the complex mathematical algorithm and in return, they are given free btc or transaction fees, it is accepted by many vendors for exchange of goods or service or you can sell the commodity for bitcoin.
Bitcoin can be a future of money as printing currency cost a lot to government and also causes inflation for the customers but bitcoin would ease it as they are limited in nature and thus will not create inflation in the society. There are only 21 million bitcoins in total and it can’t be produced more.
The associated limitations
However, bitcoin has many limitations such as, many people use it for money laundering as in trade it doesn’t require any sort of personal information, it is risky when the user forgets the password of the account or lose the wallet as bitcoin is not easily recovered if it’s gone it’s gone for permanent, many people are unaware about it and they don’t accept it for trade. Many fake sellers of bitcoin sell fake bitcoin to the customers. Bitcoin exchanges or accounts are not protected by any legal authority thus there are chances of fraud as there is no legal obligation.
In conclusion, bitcoin is a risky investment as it is highly volatile and thus it is advised to not investhuge amounts as it can also lead to loss, so before investing in bitcoin do the market research.