Bitcoin investment: why is it so important?

To date bitcoin has no more secrets, everyone knows this virtual currency. However, it remains a duty to inform people about the king of the crypto currencies. This information is needed to understand if a bitcoin investment is required. It is necessary to analyze the blockchain technology and understand why it is the true backbone of the entire market.

Bitcoin as currency

Bitcoin is the first crypto currency, created by the famous and mysterious Satoshi Nagamoto. This project opens the doors to the fantastic world we live today. It is a currency because its main purpose is to transfer value from one subject to another. Moreover, we talk about “crypto” as it is based on cryptography that guarantees security. So make a bitcoin investment equivalent to invest in a currency.

How to make a bitcoin investment

There are different ways to make a bitcoin investment. To invest you need to buy a certain number of coins. Mainly there are two ways of buying: wallet and exchange. The wallet allows you to keep coins on your PC or mobile phone. The exchanges are born as platforms for trading. In recent times they have evolved allowing the creation of portfolios. With exchange wallets we have the ability to instantly convert our coins into other currencies. For other currencies we mean not only virtual but also Euro and Dollar.

Blockchain

The main innovation brought by Bitcoin is the technology on which it is based, called blockchain. The blockchain is a “chain of blocks” in continuous evolution. In fact, a block is added to the rest of the chain once completed with a total number of transactions validated by the work of the miners (for a deepening on mining go to our dedicated mining section).

Nobody can  remove in any way a validate transaction in the Ledger. Furthermore, all nodes in the network have a copy of the transaction, so the system can easily detect a fraud attempt.

Advantages

The Blockchain offers also the great opportunity to give up, during a transaction, the need of an intermediary.  This is because the trust needed to guarantee the transfer is provided by known and non-modifiable mathematical algorithms. This brings numerous advantages, or better cancels all the disadvantages that the human component involves in this area.