We can see a lot of ups and downs for BTC and other crypto assets during this year. That leads to debate about whether these assets are still the right thing to invest in and protect your money. The first crypto is present on the market for almost 15 years. During that time, we learned that things can get more complicated with it due to various factors that can affects its value.
Still, we have to mention that you can still make a lot of profit by investing in this market even though the price of it is not as it was two years ago. Another positive element is that there is a great potential for it to reach the same value in the following months. If you are interested in investing in BTC, check out bitcoinup-pro.com
Even though there are now thousands of other options available on this market, it is still keeping the status of the most popular crypto asset. The fact that it was first can be still recognized as an important feature, but technical properties are the real reason for that. Keep in mind that a lot of other options that you can find today represents only a plain copy of this system.
The most important features of BTC are safe and fast transaction made on the transparent system where there is no way for anyone to intercept a transaction or attempt any sort of cyber-attacks. One of the key elements is that this system is decentralized. The question is, at what level?
What Are the Key Features?
One of the most important advantages of decentralized system is that it can operate outside of common financial institutions and not be controlled by third parties like governments and banks. Each country will introduce some sort of monetary regulations, but they won’t affect the transactions made with crypto wallets.
The benefit can be seen in countries that are facing higher inflation rates because investing in BTC can be a great alternative to preserve the value of your money. Another benefit is that you can avoid additional fees for international transactions, or waiting for a couple of days to send money, which can be the case with standard processes today.
The key feature is that the system is run by a group of users who are called miners. They are providing resources to the system that are used to confirm transactions and store them on the system without a chance for anyone to change them in any way. Because of that, there is no way to introduce a single organization that will become an owner, which would lead to issues because that party would seek for a higher profit.
The goal of this system is to allow people to make financial transactions without the need to use standard financial services like banks. The point of decentralization is to make such system transparent. Users can check different data related to transactions that are presented as codes. On the other side, the level of security is very high since no one is able to check your name, address, or other data.
The simple explanation is that all users of this system are part owners. That is preventing large investors and groups to attempt possessing bigger portion of this market. The base of the system are miners who are providing resources to the network. When you want to buy or sell BTC, the miner is one who will process that transaction and store it in the system.
Potential Challenges
Miners can control each other’s activities by preventing false data from being stored. That is the reason why it is so important to have a lot of random people included from all over the world. The only situation where some sort of issues could be present is the case where a single group owns more than a half of all BTC that is mined. However, that is only a theory because holding so much of this digital assets will require enormous resources like computing power and electricity. Chances that we will face such situation ever are very low.
What is the Level Of Decentralization?
First of all, we have to mention that it is not 100% decentralized. The reason for that is that there are already bigger groups that own a decent part of this system. Still, when you want to process an information on this network, the data will be spread across various random individuals, which means that the chance for one group to be able to prices its own transactions are close to zero.
Even when one group holds more than 50% of the system, it will still be very difficult to reach the point where you can alter the transactions in your favor. There are other options that holds a high level of transparency as well, but this one is known as the best one.
Is It a Good Investment?
We have to mention another thing related to decentralization, which is the fact that China made it illegal few years ago. Before that, nearly 50% of all resources were coming from this country. While that is a negative thing for them, people from other parts of the world don’t have to worry about preserving this feature.
When it comes to the potential, there are many factors these days that are suggesting that not might be the best time for buying it. The inflation rates are going up all over the world, and there are many indications that we might face another recession. Remember that the previous one in 2008 was the reason for the development of BTC.
Last Words
Even though it is recognized as the most transparent system today, there are some details that are causing it to not be at 100%. Still, it is the safest method that you can use to complete transactions, especially to another country. However, be sure to choose a reliable platform for that since there is a threat of facing cyber-attacks on these websites.
