Jan 14
Why Do People Buy Bitcoin?
People buy Bitcoin for the same reason they buy any other asset. They believe it will increase in value. Some people also invest in Bitcoin to take advantage of its volatility because they think that cryptocurrencies will eventually replace traditional currency. There are also those who trade Bitcoin the same way they trade stocks and forex.
Although the primary intended use of Bitcoin is as a form of payment that can be used to purchase goods and services or held as an investment, many people buy bitcoin for the purpose of speculation, hoping its value will increase over time. They may have heard stories about that daughter of your neighbor’s workmate who bought 100 bitcoins for $1 each way back in 2010 or 2011 and is now a multimillionaire.
Some people buy bitcoin to invest in it the same way they do when buying stocks. It’s a new and exciting market that has been growing exponentially over the last few years, so there is potential for significant growth if you choose to invest.
Others use it as a way of storing their money safely away from banks and governments that may fail or steal your savings under false pretenses at any time. Bitcoin transactions are immune to these actions because they’re decentralized across many computers around the world.
Overall, many people believe that bitcoin has great potential and will continue to grow in value over time. And because it’s decentralized, there’s no government or central bank able to manipulate its supply like they can with traditional currencies like the U.S. dollar (USD), British pound (£), or Euro (EUR). This makes some think that bitcoins may be more stable than other currencies on international markets today — which could lead them to become an attractive option for investors around the world looking for solid returns.
A Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
In addition to bitcoin, there are also other cryptocurrencies including Ethereum, Cardano, Polkadot, Solana, Polygon, Binance coin, and many others.
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