Bitcoin and cryptocurrency are the new darlings of the financial world. And like any new technology, it can be hard to understand the hype.
For starters, cryptocurrency is digital money that isn’t issued by a government or bank. It’s an electronic currency that uses encryption to generate units of currency and verify the transfer of funds.
The most popular cryptocurrency is bitcoin. But there are thousands of other cryptocurrencies available as well. Some are worth more than $100 billion, while others are worth only a few cents or even fractions of cents.
Here’s why you shouldn’t worry about investing in cryptocurrency, especially with Coin Culture – Lowest Fees Crypto Exchange in Australia:
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1. There’s no central authority controlling it
Cryptocurrencies are decentralized and run on a peer-to-peer network where they’re not controlled by any single entity (like a government). This means no one person can control how much money there is or how many people use it. In fact, anyone can create their own cryptocurrency and set up their own network — which could be better than what we have now!
2. Cryptocurrency Is Here to Stay
The world has seen many fad investments over the years, with many quickly dying out just as quickly as they came on the scene. But cryptocurrency isn’t one of them — because it’s not an investment so much as it is a currency with intrinsic value.
Just like when anyone uses U.S. dollars over another country’s currency, they’re not just using it because they like greenbacks better than euros or yen — they’re using it because U.S. dollars are accepted anywhere in the world (at least for now).
3. It’s Not Just Bitcoin
There are thousands of cryptocurrencies out there and most of them have nothing to do with Bitcoin. The reason is because many people are trying to create their own versions that are better than others. The problem is that these new coins often have nothing to do with the original blockchain technology behind Bitcoin.
4. The Market Is Still Small
If you look at Bitcoin’s price history over the last decade, it doesn’t look like much has changed since 2009 when it first came out. In fact, most of its growth has happened in just the last few years since its price hit $20K in December 2017 (source). There will likely be more growth in the coming years as more people start using digital wallets like Coinbase and other exchanges become more mainstream.
5. Cryptocurrency Is Volatile
One of the biggest disadvantages of cryptocurrencies is that they are highly volatile. This means that their value can rise or fall dramatically within a short period of time, sometimes even in a single day. For example, on January 1st 2017, one bitcoin was worth $997 USD. On March 24th 2017, it reached an all-time high of $2,981 USD per coin before falling back down to $2,000 USD per coin by April 1st 2017. As you can see from this example, the value of a cryptocurrency can fluctuate wildly within just a few months’ time! If you don’t want your investment to be subject to such volatility then it’s probably best if you don’t invest in cryptocurrencies at all…