Bitcoin’s unique features make it valuable in the eyes of its holders. Notably, its scarce, auditable supply is not controlled by a government or other monolithic entity.
The Bitcoin network is supported by miners, nodes, and users, who may be retail investors, traders, or merchants. Increasingly, institutional, corporate investors are entering the Bitcoin market as well to preserve their treasuries.
The Bitcoin halving is an event that happens approximately every four years, when the bitcoin reward miners earn for finding a new block is cut in half. This algorithm reduces Bitcoin's inflation rate and enforces its scarcity.
With a market cap of about $357 billion, bitcoin accounts for less than 0.002% of all of the world’s aggregate wealth (somewhere north of $1 quadrillion). Other competing stores of value include gold, bonds, real estate, and high art.
Uncontrolled hyperinflation in Zimbabwe caused the monetary system to become virtually ineffective, reducing the quality of life for its citizens and stunting development progress.
Brokerages and exchanges are two different models that allow traders to buy and sell assets. The functional differences impact how traders and investors can use the two types of platforms.
A depth chart articulates the supply and demand of a particular asset, such as Bitcoin. Understanding a Bitcoin depth chart is useful for trading and investment decisions.
Dollar-cost averaging is a popular investment strategy because of its risk mitigation, simplicity, and wide applicability to almost any asset class. Dollar-cost averaging can be a promising investment strategy for any Bitcoin investor who seeks long-term profit and isn’t deterred by the price volatility of Bitcoin.