Let’s talk about cryptocurrency. Crypto has been around for about a decade, and it can still be mystifying to some people. It’s money that you can’t really see, touch or even use most places. So let’s take a minute and break it down.
What is crypto?
Cryptocurrency is a digital currency that can be used to buy goods and services online. And of course, Bitcoin is the most popular form of cryptocurrency, and it is often considered to be the first mainstream one. Bitcoin is currently valued at over $420 billion. That’s nearly half a trillion dollars. And for those who came in on the ground floor in 2009, they’ve made a lot of money since then.
Types of crypto
Today, Bitcoin isn’t the only form of crypto. In fact, many companies have made their own currencies called tokens that you can use to buy from them online. You can kind of think of them like casino chips.
Pros of this futuristic currency
Cryptocurrency has become extremely popular in the last few years, and users and admirers see crypto as the currency of the future. Why do they like it so much?
- Crypto is decentralized; it removes banks from the equation.
- Supporters prefer to avoid the devaluation of their money that can come with inflation.
- Security is a huge factor. Cryptocurrencies use a technology called blockchain. This is complicated, but it’s a decentralized technology spread across many computers that manage and record transactions. This recording system is thought to be more secure than traditional payment systems.
Should you invest?
Crypto has been rising in value lately, which is enticing casual crypto traders. Of course, I’m not an expert, so I won’t recommend that you invest. The crypto market can be extremely unpredictable and volatile. One day it’s down in the dirt; the next day it’s sky-high. Do you want to invest in cryptocurrency? Be sure to do your research and watch the markets closely. There’s no guarantee that traditional institutions will adapt to this market. Also, governments remain the most major threat to these currencies. They don’t like a lot of competition, as you’re probably aware. So the future of cryptocurrency in the world is still unsure.
Do you have any thoughts on cryptocurrency? Put them in the comments below!