Bitcoin is a decentralized digital currency (cryptocurrency) that was invented in 2008 by a person or group using the pseudonym Satoshi Nakamoto, and began operating in 2009. Unlike traditional money issued by governments or banks, Bitcoin operates on a peer-to-peer network, meaning transactions happen directly between users without a central authority or intermediary like a bank.
Key features of Bitcoin:
Decentralization
Limited Supply
Digital Ownership
Mining
Uses
Open Source
People generally invest in bitcoin for several reasons centered around potential returns and long-term value. Here are the most common motivations
Potential for High Returns
Long-Term Value and Store of Value
Portfolio Diversification
Inflation and Economic Uncertainty Protection
Increased Institutional Adoption
Censorship Resistance and Decentralization
Bitcoin's price is volatile due to several key factors:
Supply and Demand Dynamics
Market Sentiment and News
Immature Markets
Investor Speculation
Regulatory Uncertainty
Bitcoin's price is volatile due to supply/demand shocks, market immaturity, news cycles, speculation, and regulatory uncertainty. When buying for the first time, select an exchange with a strong reputation, security, compliance, and a user-friendly interface to ensure a safe and smooth experience
