01
Aug

Is bitcoin a good investment?

Technologies is now one of the most important parts of our life. Major part of world population that is very successful works in developing new things that are going to change our life. The amount of investments were also increased in innovations. However, not all innovations can bring money to the creators and investors. History has a lot of examples of thing that in some time were founded very hopeful and perspective. Just remember the time, when mobile computers have appeared on the market. Almost every big corporation have been producing their gadgets investing huge number of costs. Today smartphones have replaced it as a most popular portable device, which is always with it owner. Moreover, smartphones with touch screens have really become a successful innovation that given money to the companies. Other good example was portable game boxes. Some period they used to be popular and profitable, but in time, they were also replaced by smartphones and disappeared form the ordinary life. Therefore, the question of what investment in technologies would be profitable and perspective in the future becomes quite actual and important.

One of the most popular and public innovation that pretends to be interesting for the investors is Bitcoin. It is first and the most expensive cryptocurrency on the market. Since the 2009, when it developed, the price of it have grew in many times. Current price in dollars in some cases is higher than several thousands of dollars. All these factors may persuade us that bitcoins good investment will make us wealthy and rich. However, is it really so sure and woundily? This question appeared because there are different views on the phenomenon of the cryptocurrency. Bad habits of this innovation also deserves to be shown to the people that are not profound in the theme of latest developments in computer science.

The first step in the understanding of the cryptocurrency we should know, what technologies it uses to become real and how they are working. We are going to take Bitcoin as the most well-known example. It uses a distributed ledger technology in it basics. What is it? This technology allows you to save information in different places and even systems. The biggest advantage of it is that different institutions do not influence on the security of the data that is in the program. Moreover, the speed of the transferring of the information is extremely high. That is why sometimes distributed ledger technology is called one of the most progressive developments of the resent years.

If to back to Bitcoin, it will be better to take into the consideration that fact that it use special variant of it. It is called Blockchain. The specific of the Blockchain is that it contains it information in the chain of block with exactly information that is needed to the each problem. It uses cryptography elements that makes the safety better. It is very important in the modern world, which is online and the risk of being hacking is very high. It is a problem not only for the big corporations, but also for the ordinary users of the internet. Beside the cryptocurrency, Blockchain is also used in such thing as smart contracts. They are also built on the safety as the biggest goal and are becoming more and more popular in world business. Blockchain in Bitcoin also makes real using it with common popular thing s in our life. For example, bitcoins for PayPal are available for several years.

To sum up, the high level of safety, big numbers in bitcoins price graph, high speed of working – bitcoins currency is looking very attractive for the investors. What is the problem can happened with it? The first and the biggest one is the problem that is calledBitcoin scalability problem. It is related to the initial limitation by developers of one megabyte of base structure for storing data (block) in its blockhead. This restriction is dictated by the peculiarity of constructing blockade as a fully replicated distributed database, which requires constant referrals between all the participants of each new element. Reducing block size significantly limits the effectiveness of a potential DDoS attack. That is why now bitcoins stock chart is going to slower.

The other one big problem is it conflict to the authorities. Governments of any country are not going to acceptthe fact of emission of the currency beside of its institution. In addition, more and more voices in states appeal to fight with cryptocurrency. That is why dreams of some people bitcoins casinos were banned at first they appeared.
These two problems are not the last ones that interferes cryptocurrency to be a good investment. Before to decide to join its business, everybody should know that it increasing are going to stop in near future and make right decision.

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