Bitcoin is a digital currency developed in the year 2009. The person who created Bitcoin is still unknown. It was the first peer-to-peer electronic cash system. It is like having money online and can be used to buy products and services. Bitcoin offers to charge a low fee to every transaction. Despite its operating system that is operated by a decentralized authority, its popularity is high. It has now become the largest Cryptocurrency.
How does Bitcoin work?
Bitcoin is a computer file stored in a digital wallet app on phones or windows. You can send them to other people’s wallets and vice versa. So, sending and receiving makes a transaction that gets listed on a logbook called a blockchain. This blockchain thus helps to trace all the history of Bitcoins. It prevents people from sending other people’s Bitcoins by making copies and undoing transactions.
How to buy Bitcoins?
You can buy Bitcoins with real money. Another way to get Bitcoins is by selling things in place of Bitcoins. Last but not least, you can have them by creating them using windows. So the questions arrive here, how to create Bitcoins?
Bitcoins are generated in computers by mining. People make their computer to work different sums while helping the Bitcoin system to work efficiently. They get Bitcoins sometimes as rewards. But it takes a large to get even a single Bitcoins. Ans this process of creating Bitcoins is called mining.
The best site for bitcoin is Coinbase
Why are Bitcoins valuable?
Bitcoins are valuable because they serve as equal to money. People are ready to give money, real goods, and services in exchange for Bitcoins.
History of Bitcoin Price
Bitcoin first started with a value that was less than a penny. But today its price is around $10,000, and it can go more.
In the year 2017, the Bitcoin price was trading at $20,000 per BTC coin. That year made some people the richest of the richest. And made investors buy the assets more.
But in the year 2018, there was a drastic change in the pricing. The price went down to 80% as $3,000 per BTC coin. This incident made investors think before investing.
In 2019, it returned back to above $10,000 to $14,000 and again falling to $6,500.
And in 2020 started, Bitcoin price was going high till the covid pandemic started. The pandemic impacted the Bitcoin pricing to fall from $10,000 to $3,800. Which again rose to $12,000 in the year 2020 only And now the question arrives whether the price will rise or fall in 2021?
Prediction for Bitcoin in the coming years?
Industry experts have predicted that Bitcoin’s value could reach $100,000 to $1000,000 in the future. Some predictions are-
Max Keiser is a financial analyst who predicted that Bitcoin’s pricing could rise in the short term up to $100,000. And Bitcoin pricing in the longer term, the price can go up to $400,000.
Robert Kiyosaki is an entrepreneur and an author of “Rich dad poor dad book.” He suggests his followers buying Bitcoins and says that Bitcoin’s price will rise to $75,000 in the next three years.
Is Bitcoin a good investment in 2021?
Considering; the predictions of industry experts and big investors. It seems that Bitcoin pricing could be enormous in the coming years.
So investing in Bitcoin is good in 2021 for the long term. However, how many years will require to have such growth in Bitcoin pricing is unpredictable.
Considering the facts and predictions, it shows a high result of offline cash being replaced by Bitcoins in the future. Since it has a greater chance of getting more expensive and gaining more popularity in the next few years. It’s better to invest in them. So you can invest in Bitcoins in 2021.