Due to the strong rise in prices, virtual currencies have become the focus of attention these days. No one can estimate the value of BTC tomorrow or in a week. But everyone wants to invest.
The history of digital money began in 2008 with the publication of the article “Bitcoin: A Peer-to-peer Electronic Cash System” under the pseudonym Satoshi Nakamoto. From then until today, it has undergone significant changes marked by a sharp rise and fall in value, followed by public interest. Bitcoin is a system based on complex cryptographic algorithms, without the existence of a central authority that issues money or oversees transactions. The price of bitcoin is still significantly higher today than it was until 2013, so the question arises whether bitcoin has a future in global financial markets.
At the time it was created, the value of this cryptocurrency was almost nil ($ 0.03). At the time, it was predicted to be successful if its value managed to equal the dollar, which few people believed was possible. Yet this cryptocurrency has succeeded in this and has surpassed the value of the dollar as many as tens of thousands of times! The price of bitcoin is still significantly higher today than it was until 2013, so it is set the question of whether bitcoin has a future in global financial markets. This question, in particular, comes up It is important to keep in mind that bitcoin is a fast, relatively secure, and currently the cheapest way to transfer money.
Bitcoin is a system based on complex mathematical algorithms and mechanisms and as such is fully understandable and clear only to that part of the public with a high level of information education and literacy. People who are less computer literate can make mistakes that can leave them without their resources. Possible errors of users include the loss of data and information about keys, the possibility of unauthorized intrusion into the system and theft of keys, as well as inadvertent disclosure of key information.
Investing in cryptocurrencies is very popular today. Many try to save and make money this way. Of course, there are many other currencies worth investing in, but bitcoin is without a doubt at the top of the list. In any case, trading and mining appear as options, and everyone can choose what suits them best. What we can say is that trading does not require any additional equipment, while mining requires a good computer, as well as to be prepared for greater power consumption. Of course, a digital wallet is necessary to start trading or mining at all, and it is up to you to decide whether you want a cheaper or safer option – a hot or cold wallet. What makes trading easier is the existence of applications that are based on artificial intelligence and help investors to make money more easily, because the application monitors the situation on the market even when they do not. You can find out more at https://bitcoins-era.io/.
We mentioned that cryptocurrencies are based on blockchain technology which is considered very secure and no third party is required for transactions. Digital money as well as paper money ensures the anonymity of the person who pays with it and it is not possible to track it. This means that the person receiving the electronic banknote cannot find out the identity of the person who used it. We also said that there is no central authority (the Government or a bank), but we could not skip the volatility, that is, the frequent changes in the value of currencies. This is exactly what brings us to the question of whether it is worth investing in them or not.
If you are already familiar with this topic, then you probably remember the situation from last year when Elon Musk, the CEO of Tesla, invested a large sum of money in bitcoin. He believes that he did it to devalue her, which he did, but only for a short time. However, this cryptocurrency overcame obstacles and returned to the throne. Its current value is $ 34,849.50.
Proponents of cryptocurrencies believe that blockchain technology will change the world, and some even argue that cryptocurrencies are the digital gold of the 21st century and that in the future they will play the same role that precious metals have played throughout history. However, this is simply not possible and the most important reason is that the scarcity of cryptocurrencies is artificial, and the scarcity of physical gold and other metals is natural. There is very little gold in the earth’s crust, and in order to extract and process it, it is necessary to invest a lot of resources. However, given that cryptocurrencies are also produced in a certain number, they are undoubtedly worth the investment.
In any market, including the crypto world, there is growth, decline, and price cycles. Currently, there is steady growth with smaller and shorter declines or price corrections. Lots analysts claim that bitcoin is in a state called a “bubble” and that it is a matter of time before it will burst. When someone decides to invest in cryptocurrency, it would be wise to deploy and not invest the entire amount in one cryptocurrency and hope that it will grow by 1000% in a short period of time. This is what more and more people have been doing lately, especially those who are new to the world of investment and are not fully acquainted with the digital money market.
Final thoughts
Virtual currencies have advanced so much that they have gained narrower and broader terms related to them. They are divided into several types, and some companies accept them as a means of payment. Bitcoin is the most famous virtual currency, and the basic feature without which it would not reach an enormous level of demand is the fact that it is with the double flow. It is because of this fact that it has so much impact on the economy. It can be concluded that bitcoin has the largest market capitalization, followed by Ethereum, Ripple, etc.