Should You Jump into Crypto Bandwagon?
November 28, 2019 | Uncategorized | No Comments
Cryptocurrency is basically a type of digital currency that’s created and managed using sophisticated encryption otherwise known as cryptography. With Bitcoin created in 2009, it made cryptocurrency an immensely popular investment scheme. While Bitcoin has successfully attracted increasing number of followers for the following years, it was few years later before it began capturing mainstream media and tons of investors after peaking at a record high of 266 dollars per Bitcoin in 2013.
During its peak, Bitcoin sports 2 billion dollars market value but, plunged 50 percent short after. This fluctuation in Bitcoinface raise debates for its future and cryptocurrency in general.
Where is Cryptocurrency Headed?
There are economic analysts who are predicting a huge change in cryptocurrency, especially that it’s forthcoming as an institution money. Furthermore, there’s also a chance that crypto will sooner or later surface on Nasdaq, which will boost its credibility as well as its uses as alternative to traditional currencies. Some are predicting that all cryptocurrency needs verified ETF or Exchange Traded Fund.
In essence, ETF makes it simpler for people to make investments in Bitcoin. Still, there needs to be a demand to invest in crypto which some would say not generated automatically with a fund.
Grasping the Concept of Bitcoin
Bitcoin is decentralized. It takes advantage of Peer-to-Peer technology that allows all functions like:
- Issuance and;
- Transaction processing
All of which are collectively done by the network. While the decentralization has allowed Bitcoin to be free from government interference or manipulation, the flipside here is, there’s no central authority monitoring that everything will run smoothly.
The process in which Bitcoins are created are done through a process called “mining”. This demands powerful and advanced computers to crunch in numbers and to solve complex algorithms. They are created at 25 Bitcoins every 10 minutes and capped at 21 million, which is a level that’s expected to be achieved in 2140.
Difference between Crypto and Fiat Currencies
Such Bitcoin characteristics made it totally different from fiat currencies and the same reason as well why you should use crypto bot for trading and make money. Well with fiat currencies, these are supported by government and central bank of the nation thus, highly centralized. While banks are regulating currencies issued, there’s no upper limit with the amount of currency issuance.
When compared to Bitcoins, it’s value depends largely on how much the investors are willing to pay for it at a given period of time. This is why there are times wherein cryptocurrency beats fiat currencies in terms of value.