What is Bitcoin? (https://bitcoin.org/en/)
I will make it easy for others who are just starting out in this industry to understand. This is a type of cryptocurrency which in other terms is a type of digital currency, and at the same time we can also make money.
It is called Crypto due to it uses technology and encryption system to avoid hacking, In addition to this, Bitcoin also has what is called
Blockchain Technology (https://www.investopedia.com/terms/b/blockchain.asp), this is made to make our transactions secure.
Why was Bitcoin made? (https://crypto.com/en/bitcoin/why-was-bitcoin-created)
This was made so that we can have a transaction or cash system where we no longer need third-parties and other factors to send money.
Bitcoin was also made so that we can process decentralized transactions in distributing money. Meaning, there is no central authority because it is peer to peer in a network and not in a single entity.
Why are there Investors investing in Bitcoin? 1. To diversify These are people who do not just put their eggs in one basket but rather place them in different baskets or in other words are not satisfied with just one source of income or investment.
2. Potential Upside meaning that bitcoin has a very big potential to increase its value in the future. That is why it is proven and tested in the long-term.
QuoteAdvantages of Bitcoin
Reduced reliance on centralized intermediaries
Can facilitate direct transfers between parties
Supports decentralized applications and financial services
May provide opportunities for investment returns
Can improve some cross-border payment processes
QuoteDisadvantages of Bitcoin
Transactions are generally pseudonymous, not anonymous
Can be used for illicit activities
Ownership and participation can become concentrated
Some networks can be expensive or resource-intensive to use
Exchanges and digital wallets remain vulnerable to hacks
Prices can be highly volatile
reference: (https://www.investopedia.com/terms/c/cryptocurrency.asp)