Bitcoin can be traded in the open market and is not controlled by any centralised government. For example, decisions made by the US Federal Reserve have a direct impact on the value of the US dollar. The value of bitcoin is not impacted by any central bank’s decisions. This is part of the appeal of bitcoin.
Bitcoin uses cryptocurrencies and peer-to-peer technology to create and manage monetary transactions. There is no centralised body determining the future direction of this cryptocurrency. The total number of bitcoin that can ever be produced is 21 million. Bitcoin is not a physical currency, and cannot be printed in a printing press. Bitcoin can be bought or mined.
Bitcoin is not legal tender currency and the trading of CFDs on bitcoin is currently not covered under any regulatory regime in Australia. Cryptocurrencies such as bitcoin are high-risk, speculative investments, which will impact any cryptocurrency CFD trades.