Cryptocurrency: The Ins And Outs Of Digital Currency
The reason you are reading this article is that you have an interest in cryptocurrency. When you watch news from your favorite Canadian TV channels or read blogs from your number one blogger, you are noting that the message is all about digital currency. Now, you are wondering what the hell is this thing?
Well, you are not the only gazelle wondering on the new wilderness of technological transformations. However, you need to get informed to make conscious decisions before boarding the virtual currency bandwagon. As you know, information is power, so it is essential.
What is cryptocurrency?
On January 24, 1848, James Marshall made a discovery that changes the world transaction and trading. You mean cryptocurrency is that old? Well, what James Marshall discovered is the most precious and valued metal in the world – gold. Gold was in existence from early days, but this is the moment the world opened a new door to its value.
Fast forward to 2009, an anonymous person whose nickname was Satoshi Nakamoto opened the doors of the virtual gold – Bitcoin- kicking off the journey cryptocurrency. Just like gold transformed the world in the 19th century so is the Bitcoin revolutionizing business conduction in this era.
Now, in a more straightforward definition, cryptocurrency are merely lines of computer codes that hold a monetary value and are generated using a high performing computer and electricity. What happens is that some mathematical computations are performed to create codes accessible to the public I form of money. Those behind this process are known as miners just as people extracting gold.
As well, you can notice that this name combines two terms – crypto and currency. Crypto stands for the security approach applied in protecting transactions sending the codes and currency refer to the money. Hence, cryptocurrency is a virtual form of money that can be used on trade and exchange with other currencies.
Why should you invest in cryptocurrency?
As noted earlier, possibly, people did not embrace gold upon its discovery and introduction in the business arena. Also, maybe the person who discovered it did not become a millionaire. A similar approach is notable on the Bitcoin. The person behind cryptocurrency idea is unknown. All that is known is his nickname. So, it is possible he did not harvest from its benefits being enjoyed to date.
Having said so, you can ascertain from the news or your reliable sources on the current cryptocurrency performances. Since their introduction, digital currencies have been gaining ground and value against the dollar and any other money. Also, digitization is taking shape every day. People are now going the virtual way, and the following suit is not a bad idea.
Nevertheless, you should not invest in cryptocurrency for the wrong reasons. First, do not just follow the crowd. While it is a good fortune, it is essential to conduct due diligence before starting to trade with a given digital coin. Also, do not test the market with both feet even if taking risk is the basic principle in business.
Current and the future state of cryptocurrency
The good news about the current state of cryptocurrencies is that no regulatory body is responsible for controlling their use. Many countries do not have laws relating to the digital currencies. As such, the virtual coins circulation is uncontrolled meaning you can exchange it with any other currencies across the world.
Notably, since no laws exist, there are no tax obligations on Bitcoins and altcoins. Hence, if you earn a profit, it will be all yours. Isn’t that a good idea? However, this only applies when you exchange cryptocurrencies between themselves.
In whole, the future of cryptocurrency is promising as per current statistics. But like in any other business where uncertainty operates, you cannot predict whether the bubble will burst or not. Thus, you should invest wisely.