Bitcoin & Cryptocurrencies: Do You Think They Are Safe?

Bitcoin had an amazing 2017 after rising in the value above 20 times from $1,000 dollars to peak of under $20,000, check the bitcoin news for this figure.  These phenomenal returns actually have caused most to ask over how they will get on this action whereas others to suggest are the dangerous bubble to burst.

What’s bitcoin?

Bitcoin is the digital currency made in the year 2009 by the mysterious person using alias Satoshi Nakamoto. This is used for buying and selling items from the people or companies that accept the bitcoin currency as the payment, however, it differs in many key ways from the traditional currencies. Quite obviously, bitcoin does not exist as the physical currency. There’re not any actual coins and notes. This exists just online.

The real-world currencies, such as dollar, can be managed by the central bank like US Federal Reserve or Bank of England that manage money supply for keeping the prices steady. They will print more and more money and withdraw from circulation in case they think it is needed, and using monetary policy controls like adjusting the interest rates.

On the other hand, Bitcoin has got no central bank as well as is not linked to and regulated by any particular state. Supply of cryptocurrency is been decentralized– it will just be increased by the process called as “mining”. For every bitcoin transaction, computer owned by the bitcoin “miner” should solve the difficult mathematical problem.