Bitcoin is only 1 of the many cryptocurrencies or digital currencies that people are looking to invest in; there are more than 800 to date.
Bitcoin has seen a surge in popularity and many of us have heard the stories of people becoming millionaires due to investing in this.
In modern times, it is seen as a way for everyone to make money.This is different as it was once seen as a way for only criminals to make money.
This is evident from the numerous ads one sees while browsing through websites.
They usually have promising headlines or slogans such as “invest now” or “get rich fast”, appealing to our dreams of being rich and living in the lap of luxury.
Bitcoin was created in 2009 by an unknown person using the alias Satoshi Nakamoto.
Bitcoin and many other digital currencies aren’t controlled by any central authority such as a government or bank.
It’s actually created by “miners”.
These people use computers and specialised hardware to process transactions, secure the currency’s network and collect Bitcoins in exchange.
People continue to use Bitcoins to buy items.
The largest businesses to accept this cryptocurrency include Action Gear and bidorbuy.
However, there are downsides – not only is it not a coin or a physical entity like our rand that is controlled by banks – people invest life savings into just one Bitcoin and end up losing everything.
Just 1 bitcoin can cost up to R81,942.48.
There are many people who have taken advantage of individuals not fully understanding the concept of digital currency and have created scams to lure people into giving up their life savings.
Recently, the Bitcoin value dropped due to many countries such as China banning the trading thereof. The price has since crashed from almost $20,000 (R240,263.01) before Christmas to less than $7000 (R84,092.05).
Here in South Africa, it would be incredibly difficult for one to buy cryptocurrency with the rand in global exchanges, as there are many exchange controls and South African Revenue Service regulations in place.
Read also:Interesting Bitcoin facts you must know
Also read: Scared of being in debt? These are the debt traps you should avoid
There are the success stories of many who have become rich from this digital currency, but anyone who is looking to invest should always consult their bank for advice or an accredited investor (a person or entity that can deal with securities not registered with financial authorities) and not blindly invest due to these “get rich quick” stories.
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