What is Bitcoin ?
Bitcoin is a digital currency (or cryptocurrency) that allows people to send money over the internet without needing a bank or any other third party. It was invented in 2009 by an anonymous person or group of people under the pseudonym Satoshi Nakamoto.
Bitcoin operates on a decentralized network called the blockchain, which is a type of digital ledger that records every Bitcoin transaction made. This ensures transparency and security, as each transaction is publicly verified and cannot be altered once confirmed.
Everything you need to know about Bitcoin
Blockchain: Think of this as a shared digital notebook that records all Bitcoin transactions. Instead of being stored in one place, it’s spread across thousands of computers worldwide, making it hard to tamper with.
Mining: Bitcoin transactions are verified by users called miners. These miners use specialized computers to solve complex math problems, and when they succeed, they are rewarded with new Bitcoin. This process is called mining.
Wallets: To store and use Bitcoin, you need a digital wallet. Wallets can be software (online or app-based) or hardware (physical devices). Each wallet has a unique address (like an account number) where Bitcoin can be sent or received.
Private and Public Keys: Your wallet has two types of keys:
A public key (like an email address) that others can use to send you Bitcoin.
A private key (like a password) that only you should know. It’s used to access and spend your Bitcoin.
Bitcoin Supply: Bitcoin has a fixed supply of 21 million coins, making it scarce. This is why some people compare Bitcoin to gold, as both are limited resources.
Bitcoin trending till October 2024
On Friday October 18th 2024, bitcoin reached its highest price since late July, coming within just $2 of breaking through the $69,000 mark. Recent data shows the cryptocurrency market has been on a consistent upward trend, with the entire digital asset economy now valued at $2.35 trillion, reflecting a 2.63% rise over the last day.
At 2:45 p.m. Eastern Time on Oct. 18, 2024, bitcoin (BTC) hit an intraday high of $68,970 per coin. Earlier in the day, BTC pushed past the $68,000 mark after establishing a solid support level near $66,600. Following its peak, the price has been consolidating around $68,500 to $69,000, suggesting a strong resistance level near $69,000. Over the last 24 hours, BTC has climbed 2.6% against the U.S. dollar and posted a 9.1% gain over the past week.
Forecasting Bitcoin value in December 2024
As of now, Bitcoin is trading around $68,970, with bullish sentiment driven by factors like the approval of Bitcoin options ETFs, which could boost liquidity and institutional interest. Analysts believe that Bitcoin could reach $95,000 in December 2024.
Factors to be considered before investing in Bitcoin
Market Sentiment: Currently, the sentiment is positive with expectations of a potential breakout
Support Levels: Bitcoin has key support levels around $62,000, so if it drops below that, it could signal further decline.
Volatility: Bitcoin’s low volatility at 2.89% over the past month suggests a more stable phase, which might appeal to long-term investors.
High Risk Investment: Bitcoin is still evolving, and it can be a high-risk investment. However, understanding the basics is the first step toward deciding whether it fits your goals.
Final Verdict
Consider Your Risk Tolerance: If you’re comfortable with the volatility and potential for significant short-term losses in exchange for long-term growth, Bitcoin can be a worthwhile investment.
Diversify: Don’t put all your money into Bitcoin. It’s crucial to have a diversified portfolio, balancing your risk across different assets.
Stay Updated on Regulations: Bitcoin’s future will be heavily influenced by global regulations. Keep an eye on changes in cryptocurrency laws in your country and globally.
Ultimately, investing in Bitcoin can be rewarding but comes with considerable risk. Make sure to do thorough research and possibly consult with a financial advisor before making a decision.
