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Bitcoin was created by Satoshi Nakamoto, a pseudonymous person or team who outlined the technology in a 2008 white paper. It’s an appealingly simple concept: bitcoin is digital money that allows for secure peer-to-peer transactions on the internet.
There will only ever be 21 million bitcoin. This is digital money that cannot be inflated or manipulated in any way.
As the most popular cryptocurrency, Bitcoin demand increases because supply is becoming more limited. Long-term, wealthier investors hold their Bitcoins, preventing those with fewer assets from gaining exposure.
It isn’t necessary to buy an entire bitcoin: you can buy just a fraction of one if that’s all you want or need.
In other words we can say that Bitcoin is a decentralized digital currency used for encrypted, peer-to-peer transactions without needing a central bank.
Why should we invest in BITCOIN?
There is a wide range of reasons why people invest in Bitcoin-
Investors look to bitcoin as a store of long-term value and as a means of protecting generational wealth.
Investors seek to utilize bitcoin to make purchases, efficiently transact with others, and provide an alternative collateral to traditional assets.
Why the Bitcoin price is volatile?
There are several reasons why Bitcoin has such a volatile price
Like most commodities, assets, investments, or other products, Bitcoin's price depends heavily on supply and demand.
As an asset adopted quickly by investors and traders, speculation about price movements plays a critical part in Bitcoin's value at any given moment.
Media outlets, influencers, opinionated industry moguls, and well-known cryptocurrency fans create investor concerns, leading to price fluctuations.
According to the National Bureau of Economic Research, one-third of all Bitcoins were held by the top 10,000 investors at the end of 2020. The number held by institutions and large investors will likely keep rising as long as belief in the cryptocurrency's staying power and profitability remains strong.
Bitcoin Volatility is also driven, to an extent, by these investors. It is unclear how Bitcoin whales—investors with BTC holdings large enough to influence market value—would liquidate their significant positions into fiat currency without affecting Bitcoin's market price. If the whales were to begin selling their Bitcoin holdings suddenly, prices would plummet as other investors panicked as well.