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Is now a good time to buy Bitcoin from the UK?

Is now a good time to buy Bitcoin from the UK?
Bitcoin is gaining popularity quickly. Up until 2017, Bitcoin was relatively unknown to the population and only a few tech geeks really heard or even knew about Bitcoin.
In fact, Bitcoin wasn’t really used for much at the time, and everyone has heard the story of the world's most expensive pizza!
Today Bitcoin is seen as a revolutionary new store of value and unlike in the past is taken seriously by many even though the tech still has its doubters.

What is Bitcoin?

Bitcoin is a cryptocurrency, a digital currency created to function as a medium of exchange and payment that is not issued by any central bank or is otherwise backed by any government. Blockchain miners are compensated in this cryptocurrency, which can be acquired on various markets, for their efforts in verifying transactions.
Using the alias Satoshi Nakamoto, an unknown developer(s) released Bitcoin to the world in 2009. Since then, its popularity has skyrocketed, and it currently dominates the cryptocurrency market. As a result of its success, numerous similar digital currencies have emerged. Competitors either aim to displace it as a payment network or utilise it as a service or security token in other blockchain systems and new forms of finance.
It should also be noted that, unlike fiat currencies, Bitcoin and many other cryptocurrencies are considered commodities like gold & silver. This is constantly in debate and many argue that Bitcoin and other cryptocurrencies are not in fact commodities.

Bitcoin & The blockchain tech

Cryptocurrencies function as nodes in a blockchain and the underlying network that supports it. The blockchain is a decentralised digital ledger that maintains information in a public database. The information stored in a blockchain is encrypted.
Whenever a transaction occurs on the blockchain, the data from the preceding block is copied into the new block along with the new information, encrypted, and validated by validators in the network, also known as miners. When a transaction is confirmed, a new block is formed, and the miner or miners that validated the block are rewarded with a new Bitcoin. This new Bitcoin can be spent, saved, or sold as desired.
Bitcoin's blockchain employs the SHA-256 hashing algorithm to encrypt information recorded in blocks. Encrypted transaction data in a block is represented as a 256-bit hexadecimal integer. There is information about previous blocks and their transactions contained in that number.

How to get Bitcoin

There are two prime methods to achieving Bitcoin, mining or purchasing. The alternative to mining Bitcoin is to purchase it on a cryptocurrency exchange. Although most people cannot afford to buy a full Bitcoin, smaller amounts of Bitcoin may purchase it on a cryptocurrency exchange using fiat currencies such as the US dollar.
 
To purchase Bitcoin, for instance, a user must first open an account on a cryptocurrency exchange and deposit funds. You can add money to your account with a credit card, debit card, or straight from your bank account. If you require further information it’s recommended to check out this trustworthy guide on buying cypto, as this will help further understand the process necessary when buying your first cryptocurrency. You can also use trading and research tools like bit index ai, to help you when buying cryptocurrency.

Mining

A variety of gear and software may be utilised to mine Bitcoin. When Bitcoin was originally launched, it was feasible to mine it effectively on a home computer.  However, as it got more established, additional miners entered the network, which lessened the possibility of being the one to crack the hash.
One can still utilise their own computer to mine if it had modern hardware, that being said your chances at solving a hash are minuscule. This is due to the fact that you’re competing in a network where miners are generating roughly 220 quintillion hashes.
With the help of Machines, dubbed Application Specific Integrated Circuits (ASICs), mining has gone from roughly 100 mega hashes per second to around 255 trillion hashes per second. These machines have been specifically developed for mining purposes and as a result, make it close to impossible to compete in the mining market without said devices.
To effectively get to be a Bitcoin miner, you possess various possibilities. If you already have a personal computer, you may use Bitcoin-compatible mining software and participate in a mining pool to earn Bitcoins. Mining pools are communities of miners that unite their processing power to contend with the huge ASIC mining farms.
You can also buy an ASIC miner if you can afford it. The going rate for a brand new one is about $20,000, but miners sometimes sell their older ones when they look to upgrade. When considering whether or not to invest in one or more ASICs, it is important to factor in the substantial expenses of things like power and cooling.

Is now a good time to purchase crypto?

Looking at the market as a whole, cryptocurrencies at the moment are looking bearish. From the all-time high of $64,800 per Bitcoin back on April 14th 2021, the price of roughly $20K-25K per Bitcoin at the moment looks like an excellent time to get into crypto.
That being said, the markets at the moment are shaky. With 40-year high inflation, Fed is raising its rates by 75bp. Overall this could drive investors into less risky assets with a stronger dollar.
Overall the Bitcoin and cryptocurrency price at the moment is considered quite a good buy in time with many investors tweeting #BuyTheDip/BoughtTheDip. Whether or not Bitcoin will go once again below the $20K mark is relatively unknown.
If you’re looking for a long-term investment then yes Bitcoin might be at an excellent buy-in point. When you consider Bitcoin in the long term the price is sure to rise within the next few years. Short-term traders on the other hand risk losing out massively in the current market.

Should you invest?

It's no longer super early days for Bitcoin or the crypto movement. This new asset class is changing the face of investments as the blockchain network increases and decentralised finance (DeFi) gains ground over traditional financial services.
Bitcoin is an asset we believe will increase in value over time. We must stress, however, that Bitcoin is notoriously unpredictable. That implies there are dramatic shifts in value over relatively brief time spans. Be aware of the potential for complete or significant investment loss before making any purchases. You should never risk more than you can afford to lose while investing.

Buying the dip

If you’re investing in Bitcoin there is no time to be addicted to anything else online such as the Digested Podcast. You should always be on your toes so that you will be able to buy the dip. Bitcoin exposure should be limited so that you can withstand losses of 50-80 per cent. You can also make use of tools like Quantum AI to help you trade Crypto, though profit is not guaranteed. We wouldn't go max long in this environment of increasing central bank rates and declining global growth pace, but drawdowns can present decent entry levels for exposure.
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