Cryptocurrency Bitcoin is currently at a record high, but what is Bitcoin?
More importantly, should you invest?
Here is everything you need to know about the cryptocurrency that is currently making headlines around the world.
What is bitcoin
Bitcoin is a cryptocurrency that was introduced in 2008.
It was created by an unknown person or group of people named Satoshi Nakamoto.
Each bitcoin is essentially a computer file stored in a digital wallet app on your smartphone or computer.
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People can send bitcoin – or part of it – to you, and you can send your bitcoin to other people.
It enables a new payment system and is completely digital money.
It was the first decentralized peer-to-peer payment system operated by its users without a middleman.
To the layperson, it’s pretty much like cash for the internet.
To buy your first one, you’ll need to download a free bitcoin wallet that is available on all major operating systems and devices.
Can you Withdraw Bitcoin?
Bitcoin users can cash out.
Coinbase allows you to sell the currency for cash that you can withdraw into your bank account.
You can also sell it to investors for cash.
There are some risks, however.
What are the risks of the currency?
It is essentially gambling.
It is not an asset that creates value – it has no minimum value other than what other people are willing to pay for which is based on speculation.
There are also fears that a bubble will burst and not be protected by government FCA schemes. So if the value goes to zero, you will lose your money.
Once you own any part of the cryptocurrency, it is important to protect it from hackers.
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Experts say you shouldn’t leave it in an exchange for too long – get them somewhere you can control.
With a software wallet, you can safely store them on your own computer.
You can also store your cryptocurrency in a paper wallet that is not in your virtual wallet or computer.
But these are harder to spend.
Why is the currency in the news right now?
The cryptocurrency is in the news right now as Elon Musk’s Tesla company bought $ 1.5 billion worth of Bitcoin.
This has caused the currency to rise a record 17%.
Days earlier, he added #Bitcoin to his Twitter profile, resulting in an earlier surge.
It is believed that Tesla will soon accept Bitcoin.
However, the Bank of England has noted that the price can be very volatile and said it was “very nervous” when people use Bitcoin to make payments.
Andrew Bailey, Governor of the Bank of England said, “I have to be honest, it’s hard to see that Bitcoin has what we call intrinsic value.”
He added, “It can have extrinsic value in the sense that people want it.”
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