What is Bitcoin

Perhaps Bitcoin is the most popular cryptocurrency. It's a decentralised digital token that doesn't exist in the physical world. BTC, like other cryptocurrencies, cannot be withdrawn from an ATM but can be used for online payment.

The history of this coin began in 2009 and was intended for a narrow circle of technical specialists. However, it quickly spread globally and the idea of BTC mining occupied the minds of those who are at least somehow versed in IT.

This cryptocurrency has its drawbacks, and there are many of them. First of all, there is a need for large energy capacities to extract new coins. It is estimated that bitcoin mining takes as much energy as it takes to sustain the life of the whole of Portugal in a year. Moreover, there is a limited number of coins in the world. By 2140, there will be nothing to mine, and everyone who has BTC on their balance will only be able to sell them to other people and then buy in the same way from other users at a higher rate.

It is worth mentioning that one operation in the Bitcoin network can take from 15 to 60 minutes, which is pretty long in the fast-paced digital age. At the same time, the commissions for such operations are relatively high.

They say that the founder of Bitcoin is Satoshi Nakamoto, but no one can say for sure he is a real person as nobody has ever seen him.

This cryptocurrency is considered a reference by which altcoins are created (or contrary to it). Among the latest news in 2021 is the recognition of Bitcoin at the state level by the Republic of El Salvador.

It is also worth noting that the volatility of Bitcoin is extreme, so investors should be cautious when predicting future movements.

You can open positions on Bitcoin CFDs with FxPro, buying or selling only a part of this coin.