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Is Bitcoin Real or Fake?

Is Bitcoin Real or Fake?

Categories: Financial
Posted: December 15, 2021

Maybe you've heard a lot of things about Bitcoin. Some of what you've heard is true, and some of it false. But Bitcoin is genuine and not fake. While you can't touch Bitcoin, you can own and use it to transact. Satoshi Nakamoto, a mysterious entity, introduced this virtual money in 2009. Since then, other cryptocurrencies have emerged, but Bitcoin is the most prominent in the world. Today, the world has cryptocurrencies amounting to over $2 trillion in total value.

Bitcoin's price surge has created thousands of crypto millionaires. Some people use platforms like bitcoin profit to purchase and sell this digital asset. Others buy and hold onto their tokens, waiting for this cryptocurrency value to increase to sell their holdings for profits.

Some economists argue that Bitcoin could be a speculative bubble that may hurt naïve investors. Plunges in Bitcoin prices have left some investors with severe losses in the past. However, the technological innovations behind this virtual currency could transform finance and money as the world knows them.

The Reality about Bitcoin

While you can't touch Bitcoin, you can invest, trade, or use it to pay for services and items locally and online. That means Bitcoin is a currency that people use, like fiat money. Satoshi Nakamoto wanted Bitcoin to be a payment method that doesn't depend on traditional debit cards, currency notes, checks, credit cards, and other conventional modes.

According to his white paper that set off the revolution of cryptocurrencies, Bitcoin should be an electronic, modern payment system that enables two parties to complete direct transactions without a trusted third party. Thus, Bitcoin aimed to cut banks and governments out of their current financial loop.

Some experts tout a computational technology underlying Bitcoin, the blockchain, as the future of the financial and payments industries.

People and Businesses Are Investing in Bitcoin

Thousands of people worldwide have invested in Bitcoin. Even prominent banks like Morgan Stanley and Goldman Sachs have ventured into Bitcoin investments. A person that bought this virtual currency some years back and held onto it can make a good amount by selling it today.

However, don't rush to invest in this digital currency. Bitcoin, like other cryptocurrencies, is highly volatile. That means its price fluctuates rapidly within a short period. Thus, you can make significant losses or profits very fast when trading or investing in Bitcoin.

Perhaps, the fact that miners have already created around 18.5 million Bitcoins and the world can only have 21 million tokens explains why the value of this virtual currency will continue to increase. Essentially, Bitcoin's price will increase as miners near the supply limit of this virtual currency.

Bitcoin Is Legal in Some Countries

Bitcoin's legality differs among countries. For instance, this digital asset is legal in the European Union and the USA. It's also popular in countries whose legal status is unclear. Perhaps, that's because it's a peer-to-peer currency or electronic payment system that governments can't control or regulate. What's more, countries like El Salvador have declared Bitcoin a legal tender. Thus, the citizens of such countries can buy and sell commodities or services using Bitcoin.

The Bottom Line

Bitcoin is a real digital currency that is here to stay. The adoption, acceptance, and usage of this virtual currency increase by the day. The number of people investing in Bitcoin is also growing. Many people are transacting with Bitcoin, especially when completing international transactions. Perhaps, that's because Bitcoin transactions are relatively cheap and faster than conventional money payments. Today, people are buying houses and cars using Bitcoin. Thus, Bitcoin is a simple and usable form of money.

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