Bitcoin - A Secure Investment for the Future

Bitcoin is an online digital currency, just like a dollar or a pound but with a few exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin engages in a peer-to-peer payment system where no intermediaries exist and goods can be securely transferred between any two people on the planet. It is associated with a heavy network of computers and the unit of currency for the Bitcoin system (appropriately called Bitcoin) can be simply captured by joining the vast network. Bitcoin provides a fast, cheap and secure transaction alternative but few are active to take the jump for it. So the one million dollar question still stay, is Bitcoin a secure investment?

Bitcoin is only a few years old, an interesting formation that has alarm many and for the record has attained a name in the top financial charts. Its popularity has covered and it has led some of the top businesses like Virgin Galactic to consider it as an acceptable source of payment. Bitcoin prices increase at rates of up to 10% and continue to control as the alpha of the market and this has made many interested in investing in it.

Another special feature of Bitcoin is that it does not have a central bank and neither does a central government control it. It's a global currency and its formation and existence lie behind a complex and geeky mathematical algorithm that enables it to shadow government related mishaps. Cases of political instability and government craziness that fall the economy down to shame and lead years of investments in a currency down the drain do not occur in the crypto-currency system. This creates a secure and friendly investment opportunity with low rise risks.

• The Downside

With an ever-amazing upside, crypto-currency also has its downs. As mentioned, this thing is still taking baby steps; and with that comes great uncertainties. Bitcoin prices are volatile; currently increasing sharply and can fluctuate at 30% to 40% in a month. The world is still surprised at its emergence and there exists very few Bitcoin holders and Bitcoin. This leads to unanswered questions and cold fear among people as investing in a new unstable 'gold mine' can yield destructive effects. Its newness brings forth the lack of regulations and scares off potential investors.

The enigma surrounding the Bitcoin system is a major factor to be considered. Anything can happen and everyone participating in the Bitcoin market is on a high alert. China in December 2013 ignore the use of Bitcoin and this led to a drastic drop in its value from $1240 to $576 in just three weeks. Programmers also determine the functionality of this global currency and many questions the thought of risking their finances for some group of geeks. This protects many from venturing into the system and increases the risk of Bitcoin investment ever so highly.