Ana Sullivan

Bitcoin as Another Virtual Reality

by Ana Sullivan January 9, 2018

Everyone has been talking about bitcoin lately, but what is it actually and is it worth indeed?

Bitcoin (BTC, XBT) is the first decentralized digital currency which can be used worldwide. Due to the fact that the transactions between users take place directly, this payment system needs no central bank or any administrator to function.

The process of delivering bitcoin is called “mining”, and since February 2015 more than 100,000 merchants and vendors accepted this type of cryptocurrency as an official payment method.

As already mentioned, the transactions between users do not need any intermediary, and after being verified they are recorded in the so called “blockchain”.

Currently, bitcoin can be exchanged for other currencies, however, no one can be certain what will be the cryptocurrency's value on the day after.

In fact, shortly after its appearance, bitcoin has been on rapid rise bringing a fortune to its owners, though the chart has been rather contradictory lately.

The bitcoin's value has been skyrocketing constantly which made many financial experts doubt whether this cryptocurrency is worth buying.

For instance, in mid-December the bitcoin's value has hit more than $19,850 and cashed down to $12,000 within days which is rather disturbing for investors.

Meanwhile, the Coinbase announced that, for now, it would not be adding any new cryptocurrencies to either its flagship platform or its other digital asset exchange, GDAX.

“As of the date of this statement, we have made no decision to add additional assets to either GDAX or Coinbase. Any statement to the contrary is untrue and not authorized by the company.” the company states.

At the same time, the US Securities and Exchange Commission (SEC )recently warned that anybody who wants to get involved in bitcoin should "exercise caution" and be alert to the threats posed by cyber criminals.  

Alongside all the warnings on the cryptocurrency risks, some vendors stopped accepting payments in bitcoin, blaming it on its frequent volatility.

Based on the above-mentioned facts, many financial experts advise investors not to get involved in bitcoin as it could be a bubble which can burst anytime soon.

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