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Should I buy bitcoin?

โ€œTo the extent it is used I fear itโ€™s often for illicit finance. Itโ€™s an extremely inefficient way of conducting transactions, and the amount of energy thatโ€™s consumed in processing those transactions is staggering,โ€ the former Fed chairwoman said. Yellenโ€™s comments have been cited as a reason for bitcoinโ€™s recent losses. However, Yellenโ€™s assessment of bitcoin as a inefficient medium of exchange is an important point and one that has already been raised in the past by bitcoin bulls. Using a volatile asset in exchange for goods and services makes little sense if the asset can tumble 10% in a day, or surge 80% over the course of a two months as bitcoin has done in 2021, critics argue. To put a finer point on it, over the past 12 months bitcoin has registered 8 corrections, defined as a decline from a recent peak of at least 10% but not more than 20%, and two bear markets, which are defined as falls of 20% or more, according to Dow Jones Market Data.

How Does Bitcoin Work?

Bitcoin is built on a distributed digital record called a blockchain. As the name implies, blockchain is a linked body of data, made up of units called blocks that contain information about each and every transaction, including date and time, total value, buyer and seller, and a unique identifying code for each exchange. Entries are strung together in chronological order, creating a digital chain of blocks. โ€œOnce a block is added to the blockchain, it becomes accessible to anyone who wishes to view it, acting as a public ledger of cryptocurrency transactions,โ€ says Stacey Harris, consultant for Pelicoin, a network of cryptocurrency ATMs. Blockchain is decentralized, which means itโ€™s not controlled by any one organization. โ€œItโ€™s like a Google Doc that anyone can work on,โ€ says Buchi Okoro, CEO and co-founder of African cryptocurrency exchange Quidax. โ€œNobody owns it, but anyone who has a link can contribute to it. And as different people update it, your copy also gets updated.โ€

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Created: 2022-11-13

From: เคญเคพเคฐเคค and เคญเคพเคฐเคค

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