Five Things You Should Know About Bitcoin
Amid the instability of the global economic and financial crisis, investors are becoming increasingly aware of the Bitcoin and advantages over traditional forms of assets and finance. Although there are still many investors remain wary of the price fluctuations Bitcoin, there are five main aspects about Bitcoin should be known by every investor.
Bitcoin has liquidity high enough in a region and a country with infrastructure and regulations existing Bitcoin. Countries such as South Korea, Taiwan and Switzerlandoffer higher liquidity than most other assets and, sometimes, its services even as credit cards due to the startups that allows access to locations such as stores that facilitate the trading of fiat-to-Bitcoin.
For merchants with high profile, many stock exchanges that allow trade to $100,000 per day and daily exchange trading limit in these countries will be organized as the U.S. and South Korea that are much higher than other countries. Meanwhile, investors also had to deal with the broad policy with KYC regulations, and traditional assets and the banking system asking for terms even more complex with the requirement of KYC/AML.
Traders and investors often complain of the problem of the high volatility of the Bitcoin. However, during the last few years, the level of volatility of the Bitcoin has declined substantially, becoming less stable than some of the other reserve currencies, including the pound sterling.
Rate volatility declined steadily from Bitcoin makes it more viable as a global currency, a storage medium value and investment. More important it again, the price of the Bitcoin has now maintain the uptrend for almost six months because of an increase in the number of individuals and pembisnis are starting to recognize the Bitcoin as protection against economic instability.
For example, trade and demand Bitcoin in countries such as India and China has surged during the last three months because of the large capital controls and financialrules imposed by the local government.
Bitcoin is just an asset, currency and value storage media in the world today where investors can settle payments across borders with ease. Another form of currency orasset such as gold, which has long been considered a safe haven asset global, which makes inefficient stores in value because they require the presence of a third party service provider or a specific infrastructure for transporting gold unlike Bitcoin very low fee and without any third party.
More importantly, few countries currently have strict regulations and restrictions on the trade and transport of physical assets such as gold. Thus, Governments and local authorities can be easily seized or confiscated assets like gold while Bitcoin can not be controlled by a centralized entity like the Government and the institution.
Bitcoin transactions cost for each independent and not based on the amount of the transaction. Which means, in which investors can send a number of Bitcoin/funds to a recipient can be completed with an average cost of $0.11. This fee applies to any transaction of any size, regardless of the amount of money sent.
Bitcoin it decentralized. Digital currencies are not controlled or manipulated by a centralized entity. Thus, with the purse of the non-custodial and exchanges, there is no individual or third party that can control the funds or Bitcoin users.
Sometimes, the investors are hard-pressed to capitalize on existing assets or moneydue to the liquidity of the Bitcoin. In most cases, the problem stems from excessivecontrol level indicated by a centralized entity that is responsible for protecting the assets of users and investors. If this entity decides to hold or freeze the assets of investors at the request of law enforcement or Government, investors will not be able to draw or liquidate their assets.
Bitcoin prevent inevitable situations as with noncustodial wallet, investors could have a Bitcoin without having to deal with a third party service provider. They can alsomake paper purse or cold storage to store your Bitcoin offline to make sure that the platform wallet or online service provider do not get access to their Bitcoin.
The value of Bitcoin solely based on the market demand for digital currencies. It is not affected by government regulation, unlike fiat money or assets. Bitcoin price rises and falls depending on the level of demand for Bitcoin over a given period.
The value of Bitcoin increases, because the demand for digital currencies increases. Investors can take advantage of the instability of the global marketplace and improve regulations on cash by allocating capital to the Bitcoin.