Bitcoin, Electronic Currency as an Alternative Investment

The United States Treasury Department calls bitcoin a decentralized currency. The distributed database spreads over the nodes of the P2P network. This allows for anonymous ownership and more efficient transfer of wealth.

Bitcoin is the most famous digital currency today. All bitcoin transactions are open and stored in a database. This makes it easy for bitcoins to be distributed. To prevent double spending, the peer to peer network ensures the safe use of bitcoins.

Investors see bitcoin as an electronic currency that can be considered as a portfolio. As an alternative investment, bitcoin can be an option if you want to diversify your investment.

Alternative investments are generally not correlated with other types of investment. That is, bitcoin is an alternative investment unrelated to stocks and bonds. This causes their value to differ from other investments.