Is it possible to achieve compound growth when I engage in Bitcoin investment? Einstein – “Compound interest is the eighth wonder of the world; he who understands it earns it and he who doesn’t pays it.” We hear numerous talks with respect to the path forward for Bitcoin, would it be able to help in prominence? Will the value increase? How secure is it to be a conceivable investment? I was able to hear numerous discussions on regardless of whether to exchange, mine as well as do cloud mining, yet I was not able to hear any discourse of expert investing or just even apply the professional investing theory to Bitcoin. Now supposing that we were to utilize the perspective that a great future awaits for Bitcoin, its prominence is going to rise, and its value will remain or possibly rise since we already know basically that its value is better than a fiat currency.
Bitcoin, it seems, is everywhere. It’s in the news. It’s on phones. It’s even available at ATMs across the globe. Its fast rate of growth and adoption are attracting a lot of attention. And like any interesting, fast-growing business, it is attracting the interest of investors. All of which leads to the question, since Bitcoin is not a company and therefore does not have a publicly traded stock, how can you invest in it?
Bitcoin is a virtual currency that uses cryptographic encryption system to facilitate secure transfers and storage. Unlike a fiat currency, bitcoin is not printed by a central back, nor is it backed by any. Bitcoins are generated by what is called mining—a process wherein high-powered computers, on a distributed network, use an open source mathematical formula to produce bitcoins. It takes real high-tech hardware and hours or even days to mine bitcoins. One can either mine bitcoins or buy them from someone by paying cash, using a credit card, or even a PayPal account. Bitcoins can be used like a fiat world currency to buy goods and services.