Over the years, Bitcoin has grown from being known to a select few tech Nerds into something that has rapidly changed the mindsets of many concerning the concept of money. How does a local crypto exchange view the world of popular digital currencies?
Some of you who are known in various financial circles have been privileged enough to witness the rise of Bitcoin.
Most of us are aware that it is the kind of digital currency that is built on Blockchain.
Here is the low down on Bitcoin:
- It is a digital currency.
- In various ways, it works just like Yen, Euro, or dollar in that it lets a user transfer value.
- Its strength lies in the Network it has been built on.
- Thanks to blockchain technology, Bitcoin can be decentralized and allow anyone to access and trade on the public ledger.
- It is super easy to transfer digital funds anywhere in the world without the need for payment processors or banks.
- Besides person-to-person payments, all kinds of businesses are accepting the currency as payment for goods or services they deliver.
- Another use that has recently seen the light of day is where people invest using Bitcoin so it may become an asset that will rise in value in time to come.
- Essentially, it is a payment method that allows the user to transfer funds.
- Sadly, the currency is not backed by any given institution. There are quite simply no guarantees when you own Bitcoin as there is no central government involved.
What makes it exciting though is the unexpected rise in value. Take it from someone who gave it a go by investing in Bitcoin during 2010 when it was worth $0.08. That was until November 2017, when it was valued at an incredible $7,000. What a way to experience a massive return on your investment.
On average you can expect a change of around 2% per day. This is not something the traditional currencies will give you. People tend to favor conventional investments due to stable prices.
In essence, one of the stumbling blocks that stand in the way of convincing someone to trade with cryptocurrencies would be the rapidly changing price.
However, the secret is to consider the overall concept behind digital currencies. If you want to be on board a new way of working with money that will set you up for the long term, then you should pay attention to currencies such as Bitcoin.
According to research, Bitcoin is expected to fluctuate less and stabilize shortly. The highs and lows you currently see are thanks to the interest it is getting at the moment.
The chances are good that governments will start to regulate cryptocurrencies. Not to fret, these regulations will not necessarily shut down decentralization. What it will do is have a powerful impact on how much and how rapidly the valuations change.
After all, cryptocurrency is about using various encryption techniques to regulate the generation of currency units and to verify fund transfers, while operating independently from a financial institution.
To put it in simple terms, it is a whole line of codes that have a monetary value attached to it.
Through using cryptography, a decentralized network goes on to set up new coins and secure transactions. Individual members of the network would set up computers to process the line of codes. In exchange, the miners, also known as processor nodes, will get a reward for securing various transactions using blockchain technology.
Even though other digital currencies outshines Bitcoin in that they present users with superior speed and scalability as well as transaction privacy, Bitcoin is still the number on cryptocurrency due to its head start. It was the first blockchain ever, and all the interest, from 2008 through 2013 was given to them. As it possesses a larger user base and robust network, it enjoys the widest acceptance.
To illustrate the point. It would be of no use if you were the only one who has an email with no one to connect with. It would be somewhat useful if you and others have email, and massively useful when nearly everyone has access to email. The same applies to Bitcoin. The more people accept it, the more valuable it becomes as a cryptocurrency.
What you need is some real-world advice on how to make Bitcoin and other currencies work for you. In this regard, a famous cryptocurrency exchange like Rubix who’s about to launch would be of use.