It’s important to understand what bitcoin is before you invest in it. We advise you to do your own research and not take someone else’s word for it. This blog post is a great start!
What is bitcoin?
Bitcoin is an online cryptocurrency started about ten years ago by someone using the alias “Satoshi Nakamoto”. The idea of bitcoin is that nobody has authority over the network, ensuring that if you own 0.5 bitcoin, it remains yours as long as you keep your private keys safe.
Since nobody manages the bitcoin network, there’s also no bank that issues accounts! You can create your own wallet on your computer or phone (check out our blogposts for a quick explanation), and you don’t need to ask anyone’s permission.
Where do new bitcoin come from?
New bitcoin enters the system through “bitcoin mining”. Miners maintain the ledgers of the bitcoin network by collecting payments and combining them into a “block”. These blocks are added to the bitcoin blockchain, bringing new bitcoin into existence approximately every ten minutes.
The volatility of bitcoin
The price of bitcoin fluctuates with market demand since it’s not controlled by any central authority. For example, the price of a single bitcoin varied significantly throughout 2017 and 2018. This volatility is why some investors choose to spread their investment over time, such as €20 per week or €80 per month, rather than investing all at once.
If you’re considering investing in bitcoin, start by educating yourself to understand what you’re investing in. Bittr was built to allow you to save bitcoin easily, cheaply, and quickly. So, start today!
Do you have any questions? Reach out to us at hello@getbittr.com.
