Cryptocurrency has made a huge impact in the finance and global market today. With new technologies come new challenges and a curious mind. A desire to explore more every day to take things forward, the advanced technology of these digital assets has made a huge contribution to the economy of distinct developing countries. With a brief being, a cryptocurrency is a decentralised form of currency that is still illegal in major regions. The most famous forms of cryptos are bitcoins, ether, and dogecoins. Making an investment with crypto is like giving your future betterment in terms of self-independency. The covid pandemic has resulted in people being more aware of financial security and prosperity, blockchain technology plays a vital role here. A process termed “mining” is done in order to extract Bitcoins. What is mining? It is a process of solving complex mathematical crypto equations to yield these digital assets. Each crypto transaction is made on a public ledger named “blockchain” and can be accessed by a private key, confidential to the owner only.
The current rise in the bitcoin-billionaire has brought global markets and potential investors together, however, the concept still holds ambiguities and uncertainties which need to be resolved. The myths associated with crypto decreases the chances of financial growth. The modernization of these forms of currency has risen with several questions in respect to what people expect and what is the reality. Read on further to know about the expectations and reality of Cryptocurrency today.
A BRIEF HISTORY: CRYPTOCURRENCY
Discovered by an anonymous Satoshi Nakamoto in 2008, bitcoin was invented on a technology named blockchain ever since it was launched in the market. However, over time, Satoshi and his fellow team workers lost connection and he was not heard from after 2010. Since crypto is a trending topic nowadays, there are certain expectations associated with it such as safe transactions and millions of profit, however, the reality might differ a bit.
EXPECTATIONS AND REALITY
- High investment = High profit?
The number one expectation of people with crypto is that – trading provides immense profits. Most people assume that investing and trading with bitcoins and others will provide millions of profit rates in no time. However, the reality is – high investments come with higher risk factors. Cryptocurrency is not always about sunshine and rainbows but is entitled to huge returns. Big investments come with a big risk of losing everything in one go. Due to the fluctuating nature and market trends, the value tends to remain unstable and might result in no profits or risky ones.
- Bitcoin is the only one
Without a doubt, bitcoins are indeed the most popular one, however, there is a need to provide full awareness regarding several other forms of digital coins too. People barely know what options of coins will suit them the best, and majorly go for bitcoins which might or might not work for different areas and people. The reality is other forms of crypto such as Ether, Cardona, Litecoin etc. can yield higher profit rates when utilised wisely with the right knowledge.
- Accessibility rate of cryptocurrency
Cryptocurrency was once found extremely difficult to assess due to the risks it involved such as third party access, public transactions and more. In the earlier days, it was difficult for one to access digital assets without the entry of a third-party system. The recent change and technological growth have resulted in higher crypto accessibility. Easier transactions, investments and no third party access has given a platform to potential investors in several different applications. Technology has allowed bitcoins and others to be accessible in every region, powering it legally.
Myths arise from lies and people tend to believe them faster. The same goes for crypto, a majority of people are unable to understand how trading and digital investment works, and so find reasons to justify their ignorance. We must have heard people saying things such as “Crypto investments are scams”, “cryptocurrency is of no use”. However breaking the ice, this beautiful art of online assets is flourishing lives and the global market. When analysed and used wisely, with experienced knowledge, crypto can be risk-free and a potential form of financial independence.