Bitcoin: What to Know Before Investing

[Fariwala]

Bitcoin’s price is often volatile, making it popular among high-stakes investors looking for a high return.
PHOTO: TAMMY LIAN AND JAKE ZUKE

In brief
Bitcoin is not a traditional asset, and its fundamental values are not measured in traditional terms.
Bitcoin can be traded directly between two parties or on independent exchanges. More brokerages are facilitating trades for investors in recent years.
Bitcoin is a highly volatile, almost completely speculative investment. Wild price swings are commonplace. For instance, in the first weekend of 2021, bitcoin rose 20%. The next Sunday, it fell 20%.

Bitcoin is a digital currency that operates outside the control of governments and banks. Trading it is fast and cheap. Its volatile price–found by looking at BTCUSD–has made it a favorite of high-stakes, risk-seeking investors eager for the potential of a big payoff.

What is bitcoin?
Defining bitcoin can be tricky. To some, it is a commodity. To others, it is digital cash.

However, the most concrete definition of bitcoin is this: It is software, a program designed to allow people to exchange value directly with each other. It was created by someone calling himself Satoshi Nakamoto, unveiled in 2008 and launched the following year.

more info: https://www.wsj.com/articles/bitcoin-what-to-know-before-investing-11613498045