3 Things That You Should Know About Cryptocurrencies
Monday, January 1, 2018, 6:00 PM | Leave Comment
The market of cryptocurrency is hot; now that the prices of Bitcoin and Ethereum have skyrocketed and made the currencies the kings of digital money.
You could understand the frantic pace of growth if you consider that barely a month ago, Bitcoin created a record by attaining the value of $5000 and just within a few weeks, it has gone up to $8000.
The price of Influence mine cryptocurrency, Litecoin and others are also on the upswing, and perhaps you now think whether to get into the cryptocurrency mining business.
Ever since the internet has changed our lives, more and more people are turning to the digital world to multiply their earnings. The attraction of the cryptocurrency market seems irresistible to those who are ready to try out their luck without any regrets or fear of losing money.
Before you take the plunge, it is essential to understand how the world of cryptocurrency works. The better you know the new form of currency, more comfortable you would be in dealing with it. Cryptocurrency works differently from the traditional currency. There is no official control on the money although the money is accessible and safe and you can transact in it.
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Anonymous money
The returns on stocks are often not enough to make investors happy, and the lesser said about the minuscule bank interest, the better.
Investors who want quick and high returns and ready to accept the concerns of stability of cryptocurrency value would find it exciting to try their luck.
Although transactions on the internet are nothing new, transacting in cryptocurrency is different because unlike traditional currency transactions that involve banks and other institutions, the transactions in cryptocurrency are entirely anonymous.
It does not leave any trail of records nor does it disclose the information about the owners. A peer-to-peer deal makes it possible to conceal the details.
The high level of privacy in transactions is one of the reasons for the attraction of cryptocurrencies.
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Unstable value
In the absence of any control on cryptocurrencies, its value tends to change very fast although you can convert funds between traditional currency and cryptocurrency.
The unstable nature of cryptocurrency makes it risky for investment that you should understand and accept before deciding to put your money in the digital money market. As gains are high so also could the losses be.
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The choice is open
The value of a currency depends on the people’s willingness to accept it. While it is obligatory to take government currencies, the acceptance of cryptocurrency depends on the person you are dealing with, and you cannot enforce it.
Acceptance or refusal of cryptocurrency is at the discretion of the individual you are transacting with. Since traditional currencies retain its value and remain stable, it has higher acceptance.
However, for new currencies, only those who are ready to accept the accompanying risk of instability would be interested in receiving it.
The more people get used to the new currencies, the more will be the acceptance, as perceptions about value are changing.
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Alex White is a financial consultant who takes a particular interest in new currencies. He has written an e-book on cryptocurrencies that includes Influence mine cryptocurrency. A social media enthusiast, he is very active on various social media channels.
