Bitcoin as an Investment: Advantages and Risks

Abstract

The article discusses the possibilities of investing in digital currency - cryptocurrencies, in particular, their most common form - Bitcoin. The high hype and rising prices of crypto coins determine the relevance of the research topic and set the trend for many years. This scientific article is devoted to the study of the nature of Bitcoin, and the history of its creation, and highlights the main features and distinguishing features from fiat money. Blockchain technology is also discussed, which is a technological breakthrough in the field of data analysis that provides many advantages, including cryptocurrency. In addition to the basic strategies of investing in Bitcoin, the option of earning money by "mining" cryptocurrencies is considered. The purpose of this paper is to show the main advantages of virtual currency, as well as to present the main disadvantages of Bitcoin compared to traditional money as an investment object. In the research, special attention is paid to determining the place of the currency in the legal framework, specifications, and perspectives of the use of cryptocurrencies in the territory of Georgia. Based on the results of the analysis conducted in the works, it was determined that this type of investment is developing very quickly. In addition, most countries already use Bitcoin as an everyday currency and also use blockchain technology outside of financial services. Keywords: investments, cryptocurrency, bitcoin, blockchain technology, mining, digital currency, crypto investment.