In current months, the Bitcoin pricing actually has garnered huge press. However, what’s Bitcoin, or is this something that must be the part of an average investor’s portfolio?
Bitcoin is the global decentralized payment network that functions without oversight from the central bank, which is associated with the nation state. This technology platform is built on (Blockchain) that allows users for transacting bitcoin price between each other without need for intermediary party. The bitcoin is a first, and prevalent, range of the cryptocurrency in this world. Some noteworthy cryptocurrencies like Ripple and Ethereum haven’t achieved same volume of the transactions that the Bitcoin has.
As the digital currency, the new bitcoins are “mined” (made) by offering the computer-processing power for validating and improving blocks of the computer code. New Bitcoin is efficiently the reward to compensate computer’s owner for a time used. More processing power, which is provided, greater the Bitcoin share mined for an end user.
Being categorized as the currency, Bitcoin or other cryptocurrencies should fulfill following criteria:
- Measure of value,
- It must act as the medium of exchange,
- Store of value.
- Standard of the deferred payment
Bitcoin seems to meet the criteria, although in the recent months an increased speculation primarily has been driven by the function as store of value, instead of increased usage in the other factors. It has led a few people to compare the Bitcoin’s price to others in 1600s.