The World of Cryptocurrencies has been exploding as of late and it could be for many reasons. One of the biggest movers for such a shift in the world’s perception of crypto could be the validity and acceptance that Bitcoin is getting. The biggest FAQ of Bitcoin is why is the price increasing so much?
Bitcoin has been reaching new all-time-highs in recent weeks, and things seem to be only going up. A lot of investment companies and banks are offering investments in Bitcoin and with good reason. The cryptocurrency has been making long-time investors and miners rich, but this was not something recent. Bitcoin has been around for a very long time, slowly climbing in price, it had a lot of highs and lows. Only last year one Bitcoin cost around $5000 and this year it reached a new all-time high of $60,000.
There are many reasons for Bitcoins rising price. Besides the ones mentioned above, Bitcoin is used a lot in various different industries. For example, adoption is constantly increasing with companies like PayPal allowing it’s users to use BTC. Publicly traded companies are purchasing a lot of Bitcoin which can soar the price. The more recognition it gets, the more people buy the coin which means the price will only increase in time.
A lot of previous more conservative investors were skeptical on Bitcoin, deeming it as a fake currency that is not safe at all. As time went on, people started using it and buying more of it, and companies started buying it, the perception of the currency changed. People started realizing that Bitcoin is safe after all and that its usage varies.
In this article, we are looking to answer a lot of FAQ since crypto is getting a new light and new investors are looking upon cryptocurrencies to make money while also identify their usability.
What is Bitcoin?
Bitcoin is one of the worlds largest cryptocurrency, it is surely the one with the highest value. Bitcoin has a limited supply, this is hard-coded into the Bitcoin protocol, which then leads to artificial scarcity. The reason it was not very expensive ten years ago is that there was a lot of coins to go around, but now things have changed. The scarcity will ensure that the value of the digital currency will increase over time.
Contrary to FIAT currencies, the price of Bitcoin cannot be inflated whereas government-issued money can decrease in value the more there is in circulation.
Bitcoin works on decentralised technology. This means that functions are peer-to-peer reviewed, rather than a single central authority such as a bank. This will make transactions safer and more private seeing as they will not pass through one single agenda.
The term ‘miners’ has been thrown around very often. What these ‘miners’ are actually doing is participating in these peer-to-peer reviews. Miners run software that will validate Bitcoin transactions and as a return get some Bitcoin. Mining rigs are very expensive and costly, both in regards to hardware and electricity bills, so if you are interested in mining be cautious.
There are various FAQ on Bitcoin and other cryptocurrencies, on what they are and how they work. This article explains in more detail this question.
Is Bitcoin safe to use?
This is a very FAQ in Bitcoin and other cryptocurrencies. Bitcoin is safe to use. It is simply another form of payment. This coin has many positives as mentioned about which make it safer. Firstly, it is completely private. In a world where privacy is rare, Bitcoin provides such a service where payment for anything and anyone is private. You do not give the ability for banks or government bodies to track and see what you are buying.
Can we trust cryptocurrencies?
If we head into the Alt Coin space, we can see a lot of other cryptocurrencies which have a lot of potentials. It is important to do your own research, Bitcoin constantly has a light shining on it so it is important for them to stay safe and clean. Other currencies are all competing against each other to rise to the top.
Some currencies have massive potential, one of which, is the second most famous crypto which is Etherium. Many others include Stellar Lumens, Cardano, Polkadot and more. You will see that you can trust companies like these as they are all trying to build a better-decentralised world. The question of ‘is this coin safe?’ should be answered by your trust in the companies roadmap and research.
Where Can I Get Bitcoin?
This is another FAQ, a lot of people new to crypto do not know from where to acquire the coin. You can purchase Bitcoin and other coins for that matter on exchanges. Two of the most notable exchanges are Coinbase and Binance. There are many other exchanges for you to try out and check.
These exchanges also allow you to exchange Bitcoin with other coins of your choosing, seeing as Bitcoin is the King of all coins, and also you they give you the option of buying a lot more coins of your choosing. You need to do your own research to see what you want in your portfolio.
It is important to remember that the volatility of cryptocurrencies is high and this is the reason why people are scared to invest. When investing in crypto you have to be aware of the volatility, otherwise, you are not going to enjoy the ride.
Is using Bitcoin legal in the US?
The short answer is yes. Bitcoin is legal to use in the US as it is in online currency. What you may be using it for is illegal, but buying, owning and paying for something in Bitcoin is completely legal and safe.
Which casinos accept Bitcoin?
The legality of online casinos in America is very confusing, laws have been changing and things are very complicated. A lot of noteworthy online American casinos are based offshore. Americans can use these casinos by purchasing Bitcoin, transferring the BTC into a wallet which is then transferred to your ideal Casino. A lot of online American casinos accept Bitcoin as their only method of payment since in a lot of states online gaming is illegal. Using both bitcoin and VPN will ensure that you will be safe and your transactions are also safe and private.
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