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.
Financial markets facilitate the trading of financial assets across many participants. These markets are usually owned by a company who pairs buyers and sellers of different assets and maintains the market’s fairness.
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.
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.
Bitcoin has historically been a volatile asset. This volatility is primarily due to the nascency of the currency, and is expected to decline as the market matures.
Deflation is a general decrease in the price of goods and services. This change will influence the economy in several ways, but is primarily negative.
As Bitcoin markets mature, financial institutions are creating new products that allow investors to gain exposure to the market. These derivative products have distinct features that potential investors must to be aware of.
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.
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.
Bitcoin becomes more useful as a currency as more people accept it. This means that every additional user makes adoption easier for the following users. This effect is also responsible for existent currencies’ continued dominance, despite having inferior characteristics for payments and storing value.
The bitcoin market has grown rapidly in recent years as a result of a growing variety of market participants, including financial institutions, regulatory shifts, and derivatives products.
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.