First, let us take note the cryptocurrencies have various types, but we are going to focus more on the most used and mentioned, which are Bitcoin and Ether. So, let’s start now!
Bitcoin being a financial one, was the first blockchain created by Satoshi Nakamoto in 2008. Its value has increased to a level exponentially. There is also an increasing number of internet sellers and retailers who are beginning to use Bitcoin as their platform for payments and other financial transactions.
On the other hand, without giving too many details, Ethereum has similarities to Bitcoin. This platform uses that is beyond the financial sides of things like mining into a service provider on its particular blockchain. Another thing, Ethereum provides a built-in software language programming which is used for writing smart contracts used for a variety of purposes such as mining tradeable digital tokens and transfer of it. Visit Crypto investor to know more.
Moreover, prior 2017 Christmas season, the space of cryptocurrency undergoes a process called mooning wherein the prices reached sky-high limit completely and utterly. This became the worst time to purchase crypto because, before Christmas, there was a market crash that led to losing 295 of the entire global market cap.
But then, in mid-January, it bounced back, leading crypto exchanges in a crash, and the Ethereum prices fell 25%.
This became a top headline in various newspapers and media platforms. It then put regulators into issuing buyer beware notices. These are needed, but a lot of regulators are struggling with a regulated decentralized technology notion. Making investments in (ICO) Initial Coin Offerings, as well as in cryptocurrencies, are speculative and might only make lots of money be lost.
Indeed, you can do this. You can say this as the Lehman Brothers did the same thing in its public shareholders. However, there are cryptocurrency exchanges that are more volatile than the stock markets.
As previously mentioned, cryptocurrency markets are all over the place now. This is the case to bear in mind, however outside of Ethereum and Bitcoin, a number of coin issues and high quality digital token, with expert management and backer, a great business model, very good procedures of AML in place, and a lot more.
Indeed, there’s a lot of ICOs taking place despite being completely awful. Thus, regulator buyer beware notices are needed. Doing your own research before making investments can be an advantage and a safety precaution at the same time.
Should we Care?
When talking about the importance, cryptocurrencies are becoming wider than before. This made it a decentralized ledger technology or also called blockchain, in which crypto is based on being the true masterpiece.
Moreover, blockchain refers to the platform wherein its technology allows cryptocurrencies, as well as the token to do operation within it. Here, any transaction capable of being recorded has the chance to look on the blockchain use, whether it for medical records, birth certificates, immigration information, and insurance policies. All of these can be stored easily and guaranteed on the blockchain.
Smart contract usage based on the blockchain of Ethereum protocols allows then a contract self-execution once the conditions are met. It will now become the headline of news eventually.
Crypto- being a currency form does necessarily need to be taken into account, especially if it has been in 10 years only of existence. This is not considered as fiat or gold. This is only a brand new technology that has an illustrated ability to disrupt the global financial system fundamentally. However, perfection isn’t met at any stretch. Lastly, take note that here, you must be careful when buying.