However, a deeper analysis of the foundations and the operations of bitcoin reveal that the above fears are far-fetched and that bitcoin is actually a very important and timely innovation in the financial sector.

Bitcoin represents a technology where the value comes from the fact that the whole world recognizes that there’s a finite amount,” says Lee. “It’s a scarce digital asset.” Only 21 million tokens will ever exist. Right now 16 million are in circulation. Four million more will be mined in the next 10 years. Based on the open source mathematical formula, “it will take 100 years to mine the last one million Bitcoin,” explains Lee who is very optimistic about the future of the cryptocurrency. Thus , due to the volatility of the exchange market the tendencies for bitcoin to rise and fall has always been inevitable.


Bitcoin operates on the blockchain technology which basically is an open ledger on the internet where different bitcoin transactions are entered and they can be viewed by all people from anywhere in the world. The bitcoin are generated through complex computer algorithms in a process referred to as mining and then sold to interested bitcoin users. To transact online using bitcoin, one need to open a bitcoin account and then you are given a unique address that made up of between 27 to 34 characters which act as your online postal address, where your bitcoins are deposited, and then you can start transacting from there.

By its very nature, bitcoin derives its intrinsic value from the networking effect, whereby the more people use it, the more valuable it becomes. In addition, the lack of censorship and government interference in bitcoin transactions makes it more attractive and adds to its value. On the other hand, the fact that one can send and receive bitcoins anytime and make payments without having to go through a central clearing house hastens business transactions. All these factors combined make bitcoin a unique currency that is poised to revolutionize the financial sector globally.

As the digital currency continues to gain popularity, and more people get to understand as well as to use it, investors are also starting to eye it. However, not all investors are viewing it from the same perspective. Some see it as a new asset class that cannot be ignored since it is setting a foundation for an overhaul of the global financial sector in days to come. Invariably To such investors, an early entry into the bitcoin sector will be a win for them in the long-run.