Bitcoin has been Internet white noise for nearly a decade now and it is slowly making a bang, especially with more people buying into the concept. Part of the appeal, cryptocurrencies is the fact that it allows freedom from being controlled by centralized powers such as governments and national banks. While the majority of the population is still lukewarm about Bitcoin and digital currencies in general, they seem to be growing in strength and here to stay. It’s been well over 8 years since the birth of Bitcoin and people are still curious. In fact, a single bitcoin is now worth thousands. If cryptocurrency seems like something you want to invest in, here are important things you should know and consider about anonymous bitcoin transaction:
- Bitcoin is volatile. With all kinds of drivers that can potentially send prices plummeting or sky-rocketing it is easy to see why people are iffy about investing in cryptocurrencies. Forks, exchange collapses, news, and hacks are only some of the major drivers for Bitcoin value, and although coins do jump around more than standard currencies, these fluctuations are not as big as they sound like in fact, according to the BVI (Bitcoin Volatility Index), the volatility of Bitcoin’s dollar price may be as high as 4.23 percent over the course of 6 months but looking at its movements throughout the course of a year, it is a much lower than 3.58 percent. This means that over the long term, the graphs move at a steadily upward motion despite the short-term volatility.
- Bitcoin trading isn’t totally free. Bitcoin transactions do bypass banks and government intermediaries, but you will still run into transaction fees, which are nothing more than small tips for bitcoin miners, which encourages them to put each transaction in a block for inclusion in the blockchain. These “tips” are negligible, especially compared with fees for the standard currency transactions.
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