Bitcoin is a fixed asset and there are only 21 million coins that can be mined. An important creation that came along with bitcoin is the blockchain or distributed ledger technology. There are various characteristics that separates bitcoins from any other currency. It is not controlled by any central bank and is available all over the world. Anyone can setup an address to receive or transfer or earn bitcoin.
Bitcoin an Asset
Bitcoin is a perfect assetand is very valuable in today’s world. One can make a lot of money using bitcoins. One of the reasons that is a perfect asset is it runs on a global network. It is built upon the block chain technology which makes it very secure and hack proof. Bitcoins are very valuable and their price is continuously rising as they are limited in numbers. At present 1 bitcoin is worth $6016.44. Bitcoin is set go up in value in near future. Their value is rising because of its deflationary nature. The market value of bitcoin is determined by supply and demand and people are willing to pay a huge amount of money for it. There are many businesses are accepting bitcoins worldwide. People are investing in bitcoin at present as the returns are going to be really great for them.
What makes Bitcoin a perfect asset?
Trading is what makes Bitcoins rise in value. People investing in bitcoin can withdraw from it anytime. Bitcoins are preferred because of their liquidity. Bitcoins provide profitable returns for its early investors. People are buying bitcoins and holding them for better and higher returns. Prices of stocks and bonds are highly sensitive to the decisions of the government and central banks. But Bitcoins are not dependent on any government or central bank they are governed by the underlying network which is very difficult to change. This is why people are buying bitcoins for themselves they want bitcoins as their asset.