The Bitcoin is a decentralized digital currency created in 2009 after the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified. Bitcoin is a is peer-to-peer, and transactions take place between users directly, without an intermediary but verified by network nodes and recorded in a public distributed ledger called a blockchain.
The Bitcoin price is quite dependent on the size of its mining network since the larger the network is, the more difficult and thus more costly it is to produce new Bitcoins. As a result, the price of Bitcoin has to increase as its cost of production also rises. The Bitcoin mining network’s total power has more than tripled over the past twelve months.
Bitcoin is offering the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies. In December 2012, a 14-year-old millennial called Mark, living in Hong Kong, poured some of the money he saved for college to Bitcoins. Today, Mark is a student in Australia and already cashing in some of his Bitcoins to pay for his college education and living expenses.
The Bitcoin is indeed an educational fund paid off for Mark
In 2012, BTC was trading at low teens. but now, The Coin is trading close to $6000. I believe it is a good idea for parents to put some of the funds set aside for their child’s education into Bitcoin. Nobody can guess where the price of a highly speculative asset will be several years from now is a difficult task even for the most advanced forecasters.
There are a few things that should make parents sceptical about the future of the Coin. One of them is timing because Bitcoin had an astronomical rise in recent months, and therefore, it is due for another correction one that could be vicious. BTC has gained 32.45% in seven days only. Another thing is competition from competing cryptocurrencies, which might eventually lead to a collapse of the Coin market like the tulip market back in 1637.
Culled From Forbes | Do Bitcoins Belong In Your Child’s Education Fund?
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