In early 2009, the first cryptocurrency was released called “Bitcoin” by a person named Satoshi Nakamoto. The real identity of the person is still unknown. Bitcoin is the first ever peer-to-peer payment system where the government does not have control over them, and it is also not backed by governments across the world. By 2018, the value of cryptocurrency spiked as large scales of investors began to invest in cryptocurrencies. Ever since, we have witnessed a number of different cryptocurrencies such as DogeCoin, Stellar, Ethereum, Shiba Inu and many more.
There are many reasons why cryptocurrencies are so popular. The first and obvious reason is that cryptocurrencies are not centralized around banks. Giving people the ease to transfer to one another without the need of a middleman. Next, the security feature of cryptocurrency is so secure that any transactions made cannot be traced. However, this can be both a good and bad thing. Another reason why the popularity of cryptocurrency is rising is due to the fact the charges are low. Compared to using a bank payment, you just have about every charge that you need to pay. For example, you have to pay a fee when using a credit card overseas and you need to pay a minimum amount to open a bank account. Because of this, this is what makes it so attractive for people who use cryptocurrencies. Last but not least, in the past, the only way to obtain cryptocurrency was through mining. However, with so many cryptocurrencies out there, investors can easily buy cryptocurrency through the trading app. Another thing to point out is that investing/trading cryptocurrencies have a high reward. Even Though the price of cryptocurrencies is extremely expensive, people are still investing in it due to the large profit that they are able to make if it succeeds.
Not many people have a positive view of cryptocurrencies. For example, there is a GPU and game console shortage until now due to chip shortage as a result of the Covid-19 pandemic. Due to the cryptocurrency frenzy, many people are buying stacks of graphic cards and game consoles to mine cryptocurrencies. To add on, there have been reports on where cryptocurrencies are harmful to the environment as a lot of electricity needs to be consumed just to mine the cryptocurrency. Not just that, there are also conspiracy theories that cryptocurrency is used in the black market, as this digital currency is decentralized.
So why do you think? Do you think cryptocurrencies are here to stay? Do you think that it should be regulated by the government, to ensure that cryptocurrencies are not misused for malicious acts? Likewise, there are pros and cons when it comes to investing in cryptocurrencies. Be sure to study well enough if you want to get started with investing in cryptocurrencies.
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