Bitcoin: A Virtual Currency, and Still a Confusion

Bitcoin is currently the most popular cryptocurrency, but the percentage of people using it for making daily transactions is negligible. Even financial institutions shun it and do not offer products that cater to the cryptocurrency market. Thus, Bitcoin, which is worth thousands of dollars, is not traded on the world markets.

Bitcoin price has slumped recently, but they are expected to reach new highs. This is because the number of Bitcoin is fixed, but the number of people transacting in Bitcoin is increasing. As Bitcoin price is determined as demand compared to its supply, with demand increasing, its price is bound to rise.

Several Bitcoin faucets give small amounts of Bitcoin free to users. If users collect these small amounts for a long time, they can increase their Bitcoin holdings. However, this approach is time-consuming and strictly for small investors.

Bitcoin is increasingly used as a hedge for equities that are facing price fluctuations due to the US-China trade war. Any bad news on the trade front sees movement in Bitcoin prices suggesting that investors are backing Bitcoin to help them tide over these uncertain times.

In the initial days, Bitcoin enthusiasts knowingly or unknowingly used terms that would help the common man associate cryptocurrency with fiat currency. Today, these terms are proving to be impediments to the people’s understanding of Bitcoin.

Bitcoin: A Virtual Currency, and Still a Confusion
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