Cryptocurrency is a form of virtual currency which is popular across the globe. Most of the cryptocurrencies uses blockchain technology and are decentralised network.
The decentralised network is based on large network which is distributed across the world through different computers, open an account today.
One of the main features of cryptocurrency is its decentralised network, which makes it impossible to be governed or manipulated by any central authority like, the government or any finance authority unlike the US Dollar or Indian Rupee.
Investing in cryptocurrency
The cryptocurrency is not issued by any central authority but are shared over the internet among the users. Cryptocurrency has many uses the user can buy goods or services.
People invest in cryptocurrency just like they invest in mutual funds, stocks, digital god, etc. However, investing in cryptocurrency is very risky as it requires a lot of research to understand the functioning of the market.
There are many cryptocurrencies which are launched in the market for the purpose of doing fraud with the crypto users which makes it really risky to invest in cryptocurrency.
The first cryptocurrency was bitcoin that used the blockchain technology which was introduced in the year 2008 by Satoshi Nakamoto in his article named “Bitcoin: A Peer-to-Peer Electronic Cash System”. He defined it as an “electronic payment system based on cryptographic proof instead of trust”.
Many cryptocurrencies with different names are launched by different people in the digital market since then, which have different value.
Is Bitcoin a Digital Currency?
Bitcoin remains the most popular digital currency and holds up to 46% of the total market. Bitcoin has faced explosion despite several factors that would ordinarily make investors nervous, such as US-China tensions, Brexit, and, of course, an international epidemic, Bitcoin saw a phenomenal surge in 2020.
As pandemic worries spread, bitcoin fell to a year-low of US$4,748 (£3,490) on the daily charts in the middle of March.
By the end of the year, it had risen to just around US$30,000. Ever since, it has risen to all-time spikes of over US$38,000, generating daily headlines and pushing up the value of other digital currencies in the process. The same price appreciation was experienced in the market in 2017.
The substantial flood of investors from large-scale organisations like the schemes of pension, funds of the endowment of the university and the trusts of investment is the one cause for this huge price surge.
Individual retail investors dominated the cryptocurrency ecosystem in 2017, with many drawn to the scarcity of the bitcoin’s and about the fact that its operation is not inside but it is outside of the global banking network. The bull market of 2017 had all of the hallmarks of the traditional “financial bubble”, with that the investors are purchasing out of “fear of missing out.”
This time, prominent names like billionaire investor Paul Tudor Jones and insurance behemoth MassMutual have put their money where their mouths are, and even long-time sceptics like JP Morgan are now predicting a bright future for bitcoin.
This all adds to the cryptocurrency’s credibility and signals that it is growing more widespread. Since its inception as a means of acquiring narcotics on the dark web, Bitcoin has evolved dramatically.
Bitcoin digital wallets, keys, and exchanges are much easier to come by these days, and there is a many more actual information’s are available than before.
A few major consumer-facing payment companies have also embraced Bitcoin. Customers may now buy store, and can sell the bitcoin in direct manner from their accounts in the form of PayPal.
Square, a competitor in digital payments, said in the Nov. 2020 that the more of its Cash App customers are purchasing the digital currencies, and that they are buying more than what they were buying previously. The merchants who can accept the bitcoin as the payment are slowly and steadily increasing.
Beside Bitcoin there are other cryptocurrencies which are facing the explosion which is basically price appreciation. The cryptocurrency named Shiba Inu, has seen a spike in value of 777% from 15, November, 2021 – 15, December, 2021 and the value of the currency increased by 45% in a single day on 14 December, 2021. SQUID cryptocurrency inspired by the Korean series the SQUID game has experienced the price appreciation of 2,700% since its launch in October, 2021.