Before investing in Bitcoin. This is what you need to know about the world's number one digital currency

Bitcoin has grown in popularity since it appeared on the market 11 years ago, and is currently the most expensive virtual currency.

The Colombian website "Finanthas Personalis", in a report on the most prominent digital currency in the world, says that interest in entering this market and investing in Bitcoin has increased significantly in recent years.

Juan Pablo Zuluaga, founder of the Miss Probias Finanthas Institute for Financial Education and Personal Finance, reviews the most important information you should know before investing in this currency.

What is Bitcoin?

According to Bitcoin's website, this currency is a consensus network that enables a new payment system and a fully digital currency. It is a decentralized, non-intermediary, payment method that relies on computational mathematics technology.

This virtual currency emerged after the 2008 crisis, and the creator of Bitcoin is known under the pseudonym Satoshi Nakamoto.

How does it work?

"At the moment there are more uses, and they work very well in large transactions and between countries. Bitcoin has a lot of value in the market. At any time you can exchange Bitcoin for dollars and buy what you want later."

There is now a vast market where cryptocurrencies are used, and many companies have already started dealing with Bitcoin. For example, you can buy airline tickets, make a hotel reservation, or dine at a restaurant and pay in Bitcoin.

According to Colombia Fintech, more than 20 companies and institutions in Colombia, for example, accept bitcoin, in areas such as tourism, food preparation and digital services. The daily trading volume is estimated at around $500,000.

Bitcoin Value Volatility

Zuluaga explains that one of the most prominent criticisms of this digital currency and what limits its widespread use is the volatility of its value: "It is difficult to set a fixed price for things in Bitcoin, but without a doubt it is indeed an asset that we can find in many places today."