The start of Bitcoin and how that’s important for investment

Bitcoin launched over ten years ago and has become a massive opportunity for investors seeking an alternative asset. Understanding how Bitcoin first launched and its initial purpose can help you make the most of your trading and investment.

In 2008, a year marked by a massive economic crisis, Satoshi Nakamoto created Bitcoin.

In October, Nakamoto, whose true identity remains unknown, introduced the cryptocurrency with a white paper outlining its concept, vision, and purpose as a “Peer-to-Peer Electronic Cash System.”

The first block of the Bitcoin network was mined four months after the white paper was released, which officially launched blockchain technology into the world.

The main function of Bitcoin

According to the whitepaper, Bitcoin’s main purpose is to eliminate the need to rely on third parties (such as banks) from transactions by using a peer-to-peer version of electronic cash instead. If you want to send money to another person, Bitcoin’s design lets you do this directly. Bitcoin lets you hold and use your own money without paying a bank or other party to do so.

The key features of Bitcoin

Limited supply

One of Bitcoin’s core features is its limited supply. To prevent over-printing, there is a cap on the total number of Bitcoins that can be created. This limit helps ensure Bitcoin doesn’t suffer from inflation. It also keeps Bitcoin’s value strong by preventing too many tokens from entering the economic system at once.

Decentralized nature

The way blockchain technology is designed means it is “decentralized” or it does not rely on central authority.  It gives the network much more protection, because it doesn’t rely on the security of one person to operate. With many people across the world controlling Bitcoin, they ensure that the network has almost zero chance of being hacked.

Global transactions

As the main aim, the “peer-to-peer” nature of Bitcoin is what sets Bitcoin apart from other traditional currencies or investments. It means the network runs continuously. Anyone can join the network from any location at any time and you don’t need to wait for business hours if you want to make a cross-border transaction (like you might need to for a bank).

As a currency that lives purely online, sending Bitcoin across the world is much quicker (it takes around ten minutes, rather than a few business days) and it is much cheaper because you don’t need to pay any bank fees to send the money.

The investment opportunity

Bitcoin’s ROI since its launch is unparalleled compared to any other asset. Nine years ago, the price of Bitcoin was monitored. Since then, it has gained 31,531.3% in value. Even during a bear market, Bitcoin remains a hugely profitable asset for those who bought and held it.

As a result, many long-term traders are holding their Bitcoin. They see massive potential for gains in the future. Shorter-term holders will also see gains when the next bull market begins.

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As a digital asset to work hand-in-hand with traditional finance, Bitcoin has many benefits. It is hailed by some as the next step in the evolution of money, making it a valuable asset to consider buying sooner rather than later for your future. As an investment, the returns for long-term holding are enormous.

Buying a little now can make you a lot later. Bitcode Method offers an excellent way for you to buy, hold, and trade without needing to know any of the technical elements of the blockchain-based currency.