Introduced in October 2008, Bitcoin marked a revolution in the history of global finances. This digital currency enabled peer-to-peer payment without any support or framework of financial institutions.
Bitcoin witnessed massive growth over the past few years. Its price jumped to around $20,000 during the bull market of 2017. Prices touched $60,000 in 2021 as the popularity of digital currency grew massively during the pandemic.
Bitcoin is right now the most prominent cryptocurrency worldwide in terms of market capitalisation. Bitcoin market cap stands at $786 billion at the time of writing. This digital currency has inspired the launch of several other cryptos in recent years.
It is a decentralised cryptocurrency that is not issued by any recognised banking system or by a government. This digital currency is produced through the computational powers of individuals, miners, and other groups of people involved in transaction verifications. They are then rewarded with Bitcoins.
Here are the few parameters that make Bitcoins an exciting investment option for the future:
There is no doubt that Bitcoin will remain the most significant player in the crypto space in upcoming years. Crypto enthusiasts looking to invest in Bitcoins can follow these steps:
Step 1: Investors need to set up an account on any cryptocurrency investment platform that is available.
Step 2: They need to complete the identity verification process and then deposit money from their bank accounts.
Step 3: Now, they can purchase the number of Bitcoins they want.
In addition to crypto exchanges, one can buy Bitcoins with selected stockbrokers and on payment apps.
Once the money from the bank account gets transferred to one’s exchange account, he/she can purchase Bitcoins. Investors need to specify the amount they wish to spend to buy the coins, review all necessary transaction details, and then confirm the purchase.
Owning a Bitcoin can be highly profitable, given the astronomical rise this crypto has registered in the past few years. Its value has jumped from $1 in 2011 to over $60,000 in 2021. This crypto is now the most famous digital currency worldwide.
Regardless of the profit and upside potential involved, it can be a volatile and high-risk investment. Investors should be aware of the volatility and speculative characteristics of the crypto space before investing in Bitcoin.
The Government of India does not recognise any cryptocurrency, including Bitcoin, as a legal currency as of now. The RBI has mandated banks and other regulated institutions do not provide any services involved with digital currencies. That being said, prospective crypto investors should assess all possible factors and take a call.