Cryptocurrency (CC) is a new currency and asset that exists solely in digital form. Though buying CC does expose you to risk, thousands of ordinary people have realized substantial profits through crypto investment.
Cryptocurrency: A Brilliant Innovation
Launched in 2009, Bitcoin was the world’s first CC. Though there are many newer digital currencies, they all follow Bitcoin’s basic model. According to the experts at SoFi Invest, CC is “not controlled by a central authority like a bank or government.” This represents a bold new direction for currencies. In the past, you had to have a central authority to prevent counterfeiting and ensure honest transactions. Thanks to a technology called blockchain, it’s now possible to have a viable currency that is regulated on a community-wide basis. For example, the global Bitcoin community collectively verifies every Bitcoin transaction. Whatever their innovative features, every subsequent CC has utilized the blockchain.
In theory, CC can cut out numerous middlemen who’d like to take a bit of your money as you move it around. The banking industry makes billions charging people fees that are often exorbitant. CC cuts out banks while maintaining safe transactions. In cities across Africa, young people are adopting Bitcoin in droves. Bitcoin provides a stable currency in countries where the local money is less than reliable. This is just one of many ways that CC adoption is spreading worldwide.
Why This Is An Ideal Time to Invest in Crypto
CC might seem a bit “out there” to the uninitiated. However, CC is neither new or unproven. Though CC is just entering the mainstream, this type of currency has been around for over ten years. Experts have fully tested the technology securing CC and keeping it “honest.” Additionally, an increasing number of institutions and corporations are investing in CC
The Tesla Effect
Automaker Tesla famously invested 1.5 billion in Bitcoin. Furthermore, Tesla announced plans to start accepting Bitcoin as payment. Tesla’s Bitcoin plan will almost certainly inspire other prominent companies to accept Bitcoin. As Bitcoin gains mainstream acceptance, this will naturally benefit other cryptocurrencies, which are collectively called altcoins.
A lot of people have followed CC for years but haven’t felt confident enough to buy in. This “wait and see” approach is only natural when appraising a new type of investment asset. If you’ve been wondering when to buy cryptocurrency, this could be the perfect time. Although the price of Bitcoin has risen 300 percent in the past year, there’s no reason to think it won’t continue rising.
Bitcoin is the CC that most dominates the financial headlines. However, there are other cryptocurrencies worthy of investors’ attention. Ethereum (ETH) is a currency with incredible potential for the future. As a currency, ETH processes transactions faster than Bitcoin. This means that ETH should be able to scale up with greater ease.
For years, CC was a novelty that inspired as much skepticism as enthusiasm. Now that CC truly has entered the mainstream, you’d be ill-advised to pass up this investment opportunity.