Bitcoins? Cryptocurrencies? What is it and should I be Investing?
It scares me how many people don’t even know what they are investing into anymore…..
They hear from their own social groups about this new trend and due to greed/fear of loss they would join in without thinking twice.
I mean that’s normal, who doesn’t want to be able to earn money fast?
Through my articles, I’ll be starting with some basic need to know information and go through all you need to know about this new trend.
IT IS ALWAYS GOOD TO KNOW WHAT YOU INVEST IN AND HOW IT WORKS.
What is Cryptocurrencies?
Cryptocurrency is a digital currency (asset) that is used as a medium of exchange and is starting to become accepted/adopted by a majority of the world. Bitcoin is currently the leading currency amongst the hundreds of thousands of other competing cryptocurrencies.
What is Bitcoin?
Bitcoin is a new currency that was created at end of 2008 by a anonymous using the alias Satoshi Nakamoto. All transactions are with no middle man inbetween; meaning there are no transaction fees and no need to give your real name. Bitcoin’s had a tremendous growth in this period of time; in 2010, 10,000 Btc was only priced around $50 to now; where 1 btc is worth $4204 (according to Bittrex. 28/09/2017). It is very hard to determine trends as it is
How do transactions work?
A transaction made from cryptocurrency’s wallet (your own private key or seed) which is used to sign transactions; this transaction is then sent out to between “nodes” which have their own unique mathematical proof of the transaction. This is then sent (or recorded) on the final address inputted.
Why is cryptocurrencys safe to use?
Main reason people started off using this digital currency is because of how practical it is; it has a system that prevents fraud or “hacked” a lot better than what we are used to in the “centralised banking system” we use today.
Why invest into Cryptocurrencies?
FIRST, I cannot stress enough on how important it is to do your own homework.
Cryptocurrencies have the highest potential growth out of all investments currently, you can double your money easily overnight even! As the world is slowly gaining more and more interest into cryptocurrency; bigger and bigger pools of money will be invested (GLOBALLY) every second of the day.
As good as that sounds Cryptocurrency is currently in a highly volatile state as every country right now is researching into cryptocurrencies and banks are finally taking a stance against/with them. (Eg. Banks in Australia are trying to taking away withdrawal fees to make centralised banking more appealing.) This is due to that for the first time ever, Centralised banking systems are being challenged and it all depends on how they react; whether they will reform their current structure for or against this new trend.
Conclusion
Cryptocurrency from my personal point of view is very similar to the “dotcom bubble” and it may sound bad; but this is still in it’s very early stages. The potential for cryptocurrency is immense and terrifying; just imagine the dotcom bubble but in this case, everyone can access and join this hype. Meaning the growth of this currency COULD have no limits
For those who don’t understand dotcom bubble as it started roughly from 1997 to 2001 and it was a huge historic economic bubble. The bubble bursted between 2000–2002; during this time all the “giants” in this industry failed and almost all completely shut down. To a later date, newer companies such as Google, Amazon and Ebay, slowly recovered and even surpassed previous dotcom bubble’s price peaks.
By all means I am PRO-cryptocurrencies; but with everything comes GOOD AND BAD.
EVERYTHING comes with its limitations.
DO UNDERSTAND history always repeats itself and how VOLATILE the market actually is.
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