Investing is not for the weak and impatient. If you know you can put money into an investment vehicle and not look at it for a few years, you might be a good candidate. If you panic and use your money emotionally, you might have a bad time. On top of this, you should be responsible and never invest more money that you are willing to lose.
What is the Blockchain?
The blockchain is a decentralized ledger that is the cornerstone of the crypto revolution. It is a technology that is sought after by the governments and banks like even if they despise bitcoin, the original proponent of the technology. Throughout the history we have had one way of keeping money records; keep them in one place and keep them as secure as possible. If a transaction happened, you changed the record accordingly according to the generally agreed upon rules. But the problem arose when big banking started and eventually it was realized that the financial paper currency and big bank system is just not a reflection of the free market at all. It is controlled, manipulated and corrupted. We realized we need to have a safe currency that was not in the control of anybody around the world to make the world freer and unadulterated economy.
Bitcoin and blockchain are parts of this revolution. Blockchain is a decentralized ledger involving countless number of computers around the world storing the same ledger or record. When a transaction happens, all of these computers have to agree on the change and if someone sends a bogus transaction, it is immediately isolated from the network. These transactions are faster, reliable and extremely secure in their nature as there is a certain anonymity associated with them. They are protected by layers of decentralized cryptography. Decentralized super computers, decentralized cloud computing, decentralized banking record keeping, decentralized stock exchanges and what not lie in the future of blockchain. Some of these technologies are already in their advanced stages of development and will simply transform the world as we know it. That is why blockchain is the future technology of the world in our very midst.
The future of Bitcoin is extremely bright due to the rapidly developing interest in it and the unfathomable applications of this technology. Mass adoption has not even gone into effect yet people are just realizing why it’s needed. Bitcoin already is sitting pretty at $12,200 with a total of $209 billion market cap in only 8 years. No one has really even liquidating from other investments like real estate, gold, or the stock market to buy into cryptocurrencies. This is a huge factor and when people start selling other assets for this digital asset, prices will skyrocket more. Bitcoin’s technology has been considered outdated and the price is so high, it is starting to be called a store of value, almost like Gold 2.0.
Cryptocurrencies prices are decided entirely by the free market. These coins are decided by the unadulterated fast free market that we never had in the history of the world. So, naturally, the price of these coins is extremely volatile and so much that your entire worth in these coins can double in a matter of days. As much as it can go up, it can do the complete opposite though and it’s not a rational market to begin with. While volatility is often seen as a negative term, it can also be taken as used as positive in the case of cryptocurrency. The reason is that cryptocurrencies are just entering the exchange markets. Being so new, many people that are curious are putting money into it. Volatility in commodities and stock exchange with an overall positive trend is a good sign for the future because the higher the volatility, the better chances of investors of making a good profit out of it. Same goes for cryptocurrencies and they are a lot more volatile than any of these conventional exchanges.
With all this said, we are not financial advisors. We are just giving our opinion on what we think is important to understand in the cryptocurrency space.
Alex has been very deep in the cryptocurrency space for the last 3 years soaking in everything there is to know. With such a new industry popping up, Alex is constantly sharing about the latest news and updates in cryptocurrencies on CoinPupil.