What is Bitcoins About? Should You Buy Bitcoin?

Bitcoin is a crypto-currency which is virtual in nature. Bitcoin is just like other currency which can be traded over the internet but has no physical existence. They exist in the form of bits as online currency and that is why called Bitcoin. Bitcoin is as equivalent as any other currencies to do the transaction online. People can buy things, transfer value or do the transaction in many locations using Bitcoins.

Does Bitcoin work? Should I invest Bitcoin? Bitcoin reviews. Should you buy Bitcoin? What is Bitcoin all about?

There is no as such regulatory body to control Bitcoins, instead, Bitcoins are managed and accounted using blockchain technology by the users themselves. They figure out the core uses of blockchain technology, find out the owners of Bitcoins, and create the market, figure out the transaction of buying and selling etc.

However, most of the people buy Bitcoins as a part of their investment with the assumption that the demand of Bitcoins will increase and thus the value of them will increase in the future, just like gold and silver which is the form of stored value. When someone buys things with the expectation and calculation that the value of that thing will increase in the future, then such kind of purchase is termed as a stored value like gold, shares, bond and debentures, some sort of real estate properties etc. So, Bitcoins are also purchased in the form of stored value. But the risk of this play is even higher because there is no physical form of the currency and it is very difficult to predict its value, unlike other stored values.

However, the investment in stored value is always equally risky as it may not go with your expectations and calculations all the time. If supply becomes higher than the demand, then the stored value will obviously decrease because more people buy it and the value will unexpectedly rise for some time but later, the purchasing capacity of people will decline and uncertainty of selling arises which will result in the crash of market of such stored value. If the stored value is not real, then also the value will be lost. So the investment in such value must be done with proper calculation of your risk-bearing capacity.

Since the Bitcoins are crypto-currencies and only available in virtual forms, their value is just unpredictable and much more volatile in nature. The value may rise or fall by about 25%-35% or more in just a day. So, the investment on Bitcoins must be done based on your own risk-taking capacity. Nevertheless, being an online currency, if someone hacks your transaction or trading of Bitcoins, then your investment will be at full risk. Moreover, there are no such rules and regulations of government to stand behind this currency and protect the money and interest of the investors nor they are managed by any authentic sources or agencies.

What do we say?

The market of Bitcoins is very volatile and is operated and controlled by some of the traders who just speculate and influence the market and determine only the present value of Bitcoins without considering any fundamentals and values. They purchase the Bitcoins with the hope to sell it on more than their investment in the fast track just by doing rough assumptions. And if the price decreases, they still sell the Bitcoins bearing the loss. They don’t have as such thorough analysis on the pricing and trading of Bitcoins. They are just professional traders who are ready to risk their money for speculations.

So, we can’t suggest you either to invest in Bitcoin or not, but before you invest your hard earned money on such speculations, think twice because it is almost like a gambling to invest money in Bitcoin. It is very hard to predict the rise and fall of Bitcoin. So, it is better we only invest that much money in Bitcoins which we can afford to lose because the profit that you can make from Bitcoin is unpredictable and it is a volatile and not secure thing with no inherent value as such.

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