The Bitcoin Generation & Volatility

December 25, 2017 baschar Uncategorized
bitcoins mining and trading

The Processus of generating Bitcoins is quite complicated and involves solving complex algorithms and sharing the solution with the entire network. The “mining” is very computationally intensive and requires powerful computers. Currently only 25 bitcoins are generated roughly every 10 minutes. So people like you and me should forget trying to generate!

The price of a Bitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your savings with Bitcoin is not recommended at this point.

Bitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. It can be compared to an ultra-high risk trading scrip. Investors say bitcoin is highly speculative, and should not exceed 1% of a portfolio.

The bitcoins is controlled by all Bitcoin users around the world. While developers improve the software, they can’t force a change in the Bitcoin protocol because the virtual currency can only work correctly only if there is a consensus among all users!

 

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