🔴What is Bitcoin?
a type of digital currency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank.
"Bitcoin has become a hot commodity among speculators"
a unit of bitcoin.
"bitcoins can be used for online transactions between individuals"
🔴Common reasons like why people generally invest in Bitcoin such as potential returns and long-term value.
People invest in cryptocurrencies for the same reason anyone invests in anything. They hope its value will rise, netting them a profit. If demand for Bitcoin grows, for example, the interplay of supply and demand could push up its value.
Another advantage is that bitcoin does represent a store of value similar to gold. While bitcoin can represent a store of value, other assets like gold, silver and platinum have uses outside speculative investing.
Key Points. Bitcoin will keep attracting larger pools of capital, thanks to a favorable regulatory stance from governments. Bitcoin's scarcity stands out when compared to constantly debasing fiat currencies. It wouldn't be surprising to see Bitcoin's market cap reach gold's value in a decade.
🔴why $BTC prices are volatile and topics like choosing a trusted exchange to buy your first fraction of bitcoin.
Supply and Demand Dynamics
Bitcoin's design comes with a fixed supply, capped at 21 million coins, making it a deflationary asset. This limitation can lead to significant price swings as demand fluctuates. The process of reaching the 21 million bitcoin cap is governed by a mechanism called halving.
