In recent days, the financial world has continued to ‘unpredictable volatility’ with a chain of ‘huge’ price increases of Bitcoin, causing Bitcoin’s mining PC to suddenly be welcomed and I have had the top posts. the PC that hunts Bitcoin. The above cryptocurrency is not too strange, but do you really understand Bitcoin yet? Let’s find out what Bitcoin is and why the above coin caused a ‘riot’ in the market in the article below!
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What is Bitcoin – the money that caused financial market riot?
If you are imagining in your mind that, Bitcoin is the yellow coin with a large letter B like the common illustrations, that is really not the case! It can be said that Bitcoin does not have any specific shape. The digital currency is essentially open-source software that was born more than a decade ago – in 2009. Bitcoin is said to be the invention of a mysterious figure, named Satoshi Nakamoto. . And the name of this character is also given to the smallest unit of the Bitcoin-Satoshi coin.
Because it is an open source software, this coin works mainly on the internet environment. The emergence of Bitcoins relies on decoding algorithms and giving answers, also known as ‘mining’ Bitcoin. One special thing is that all of us can participate in ‘mining’, but this is quite complicated, requires computers with ‘huge’ configuration as well as the technique of the ‘digger’ is really high.
Another Bitcoin fact you need to know is that this coin is limited to only 21 million Bitcoins. With this amount, many experts predict that Bitcoin will be ‘mined’ by the year 2040. And due to the limited number above, the value of this cryptocurrency will also rise and fall based on the scarcity of ‘brother it’. In addition, the trust of investors – that is, the more people who participate in the Bitcoin game, it also affects the price of the ‘brother’!
Although it is called a ‘coin’, is Bitcoin really regarded as a regular currency? The answer is both yes and no because this depends on the laws and regulations in different countries. In some countries, Bitcoin is still considered money and is used for transactions like any other currency.
However, in some other regions, Bitcoin is seen as a common commodity and certainly will not have the same special properties as currency!
Why is Bitcoin so hot?
While Bitcoin is not the only digital currency to date, it is arguably the one that attracts most investors. The fact that this coin is becoming more and more hot and valuable in the past but reaching a huge level may originate primarily from Bitcoin’s fundamentals.
If the current cash is issued by the Government as well as controlled by State agencies, Bitcoin is quite ‘free’, not tied by any organization or individual. Bitcoin exchanges are also done directly without going through a financial intermediary.
Thanks to this property, individuals or businesses are quite profitable because they will certainly not lose any arising fees for the transfer of ‘huge’ amounts to financial intermediaries.
Bitcoin is being evaluated as a highly secure cryptocurrency. Problems like hacking of a bank account, robbery or theft of money … are almost not going to happen with this digital currency. Bitcoin is developed based on Blockchain technology, also known as blockchain technology.
Transactions and data recorded on Blockchain are immutable and cannot be faked. So it is almost impossible to steal Bitcoin coins by altering or falsifying transaction information or if you want to theoretically use a quantum computer!
And another reason why the coin has received the attention of many people these days is that it has the trust of many large companies. After the announcement that billionaire Elson Musk’s Tesla is investing $ 1.5 billion into Bitcoin, we have seen a series of continuous increases in the price of this coin.
In addition to Tesla, we can also point out the ‘giants’ from other technology circles such as Nvidia, IBM … So in the future, if Tesla completes the plan to allow payment in Bitcoin, this currency will be even hotter than ever!
Is investing in Bitcoin risky?
When talking about the word ‘investment’, we must certainly accept that there is a risk factor in it, the higher the risk, the more profit. And Bitcoin is considered an investment channel that brings ‘lucrative’ profits for players!
Bitcoin’s risk stems quite a lot from the problem of price volatility of this currency. It can be seen that the price of Bitcoin is always fluctuating, sometimes increasing, sometimes decreasing, but it is difficult to grasp and predict.
For example, according to the recent stream of events, just after the words of billionaire Elson Musk, the price of Bitcoin is on the rise and is “ turning around ” and dropping quite a bit. Therefore, investors must be very careful when investing in this type to avoid Bitcoin bubble, causing great losses.
Besides, the legal regulation of Bitcoin currency is not really clear and uniform for each investor to grasp. Currently, the US is the country with the most regulations for this currency. In this country alone, there are many mixed opinions about the above currency.
California, for example, does not recognize Bitcoin as legal and ceases all commercial transactions with the cryptocurrency. Meanwhile, Arizona, Vermont, and Delaware, have adopted and have separate rules for this cryptocurrency. In addition, a number of other states are considering putting Bitcoin in practice.
In other regions like China, there is a quite negative view of this currency. Nearly every Bitcoin activity is prohibited. However, there are also a few other countries that are more comfortable using Bitcoin such as Singapore, Japan …
Overall, the legal issues associated with Bitcoin are quite complex. So, if the transactions go wrong outside the territory where the investors live, then the solution will be complicated and difficult.
What is the future for Bitcoin in the Vietnamese market?
Currently, Vietnam’s sanctions are still quite meager with cryptocurrencies. Although we have not banned the Bitcoin currency, we have not moved in favor of either. Therefore, these transactions on the market are not yet protected by current laws and are quite risky.
But in the future, there will be quite a few scenarios for this currency in the Vietnamese market. I guess that the possible scenario with Bitcoin is that it will be considered as an asset class and taxed equivalent.
Although not yet recognized, Bitcoin exchanges in Vietnam are still quite active and users are still very interested in Bitcoin. This also partly reflects that users are gradually turning to learning how to invest and make a profit instead of investing massively as it did in the peak of 2017. Thus, Bitcoin can be seen as a living investment. profits such as real estate, securities … in the Vietnamese market in the future.
Overall, Bitcoin is a cryptocurrency with a rather volatile up and down value, so investors need to be equipped with enough knowledge and a cold mind before Bitcoin’s volatility. The fate of this currency in the Vietnamese market so far is still really vague, but hopefully in the future there will be fuller sanctions for Bitcoin ‘playgrounds’ in particular and cryptocurrencies in general. .
And you, what do you think about the Bitcoin coin, leave your comments below!
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Edited by Vu Truong An
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