The world is divided into two categories of people: One being the “Bitcoiners” and the others being “No-Coiners.” The no-coiners are lacking behind given the fact that they need to understand the vast area of cryptocurrency while learning its use. Over the past few years, the domain of cryptocurrency has seen an increase in its demand and use. Cryptocurrency includes the use of digital currencies such as Ethereum or Bitcoin.
Here is the list of all the digital currencies being used in the crypto market.
A cryptocurrency is a digital form of currency that was created as well as managed by use of techniques for advanced encryption which is termed as cryptography. A leap in cryptocurrency from academic concept towards virtual reality was seen after the Bitcoin was created in the year 2009. Bitcoin went on to attract a customer loyalty in the years that followed its creation. By April 2013, it managed to flaunt a record value of $266 for each bitcoin. At the peak of its usage, Bitcoin had the market value that surpassed the number $2 Billion.
How does cryptocurrency help you?
With the world growing economically unsafe with each passing day, it is essential that the government puts in place a system that doesn’t come down crashing now and then with cases of fraud, settlement issues, identity theft, etc. Cryptocurrency can be the answer to all these questions given the limited to zero involvement of third-party service provider that decreases the chances of potential error in the system while saving a lot of capital that was invested for the 3rd party service providers.
Now if you don’t use bitcoin or just entered the domain, here are the things that you should know about the cryptocurrency market.
1-Bitcoin is as trustworthy as Fiat currency
The legal national currencies all over the world are backed with just simple promises and nothing else. This is why many currencies that include the pound, the dollar, the lira, reichsmark, and peseta have managed to lose about 90 percent of their previous value in a time frame of 100 years. Trust backing is generally high in the fiat currencies but it is also the same for cryptocurrencies. Crypto comes with its own set of trust based strengths and weaknesses, however, with time Bitcoin has essentially proven to be a trustworthy asset that is better or at least as good in comparison with fiat currency with regards to transaction capabilities.
2-Cryptocurrency is more than a means for criminals or terrorists
Given the fact that more than 90% of dollar bills that have been tested turned out positive for cocaine, it is moot to say that cryptocurrency is just a way for terrorists or criminals to transact. A major faction of cryptocurrency if not all is highly traceable as compared to the fiat currency. This is just like saying that terrorists don’t use fiat currency for any transaction. It just depends on the opportunists. Both fiat currencies as well as cryptocurrencies can be used for transaction by criminal offenders. However, the cryptocurrencies can be tracked easily as compared to the dollar, pound, or any such currencies.
3-Bitcoin is a bubble
Yes, Bitcoin is a bubble currency created by the Dotcom companies. Bubbles are essentially currencies that do not hold a value of their own and fluctuate as per the value set by its users that fluctuates. Bubble currencies flaunt a bad reputation given the fact that they leave the huge industries behind when the price goes down but they tend to scale up at times leading to huge profits. Holland tends to produce $2 Billion every year just from tulips which is a huge financial bubble but still runs till date after 300 years.
4-Bitcoin is not a Ponzi
Bitcoin has been rumored to be a Ponzi, but it isn’t. The Ponzi scheme tends to be a finance based card trick for which the people get promised with returns but not massive ones. These returns actually get paid via new funds coming in from the new investors. Bitcoin is just the currency that you buy, or hold, as well as transact with. It comes with zero inherent return along with the unknowable potential in terms of capital gain or demand for transaction or being used like a store value.
5-Bitcoin isn’t a fad
Bitcoin is actually an application that is developed from new and revolutionary technology that is broadly defined as “Blockchain”. It is a triple entry based bookkeeping technique that acts as a breakthrough in terms of account management. It is the next step towards “Triple-Entry Bookkeeping” regarding economics or business. Blockchain technology comes as a great step in terms of acting as a fuel for cryptocurrency or financial economics. Bitcoin paired with blockchain acts as the future of current financial market with “Triple-Entry Bookkeeping” as the wave to change the face of financial transactions in future.
Every business or financial aspect comes with pros as well as cons. However, to make the right decision, you require assessing various factors that play a major role in finalizing your profit or loss in the current market. The same rules apply for Bitcoin and cryptocurrencies. With timely updates and practice, it can eventually take over the global financial market regarding popularity, safety, and security.