What is Bitcoin
Bitcoin is a global digital currency that relies on the concept of distributed computing as an alternative to traditional financial mediums such as gold and banks. Even at the time of writing, Bitcoin is still the largest digital currency in the world by market value, which means that its total market value exceeds any other digital currency.
Bitcoin has provided traders and investors with good returns at times, especially when its price jumped by more than 1,000% in 2017. Nevertheless, traders should bear in mind that this cryptocurrency has sharp fluctuations and has seen loud drops in some. times.
Bitcoin also offers opportunities to diversify investments, as market research shows that there is a low correlation coefficient between Bitcoin and other assets. In other words, Bitcoin prices generally do not follow the fluctuations associated with or associated with other asset classes such as stocks and bonds.
As a result, traders and investors can reduce investment portfolio volatility with Bitcoin.