With Tesla, holding a worth of about 2.5 billion in bitcoins and planning to accept it against the payment of vehicles, cryptocurrency marked a huge success in the line of its acceptance.
It gained tremendous popularity among the masses ever since Bitcoin made an entry in the year 2009 and left people wondering what its future is gonna like?
Not that it wasn’t igniting the curiosity of the people in the first place but having endorsed by a renowned automotive brand has taken its popularity to another level, leaving us all with a very hot debate i.e. Whether a cryptocurrency is a safe mode of investment or not?
Well, among the ways, the best one is to gain a sound understanding about these ‘coins’ is to stay tuned with a cryptocurrency social media app that connects the chords and build your understanding by providing you with every bit of information.
Cryptocurrency Talk is one such name justifying the mission of keeping its reader well informed with every news and latest information about the cryptocurrencies.
To begin with, let us first understand what cryptocurrency is?
A cryptocurrency is essentially a virtual currency that has no physical existence in itself. Fundamentally, it is mined and created within the computer systems that structurally remains decentralized, i.e. outside the control of the authorities and governments.
A cryptocurrency follows the method of the blockchains to ensure the fairness and genuineness of the transactions and are run and managed by the users themselves.
Bitcoin is the first-ever cryptocurrency that has been created with a limitation of being 21 million in total out of which 18.6 million bitcoin has already been mined and has managed to reap huge popularity worldwide.
Following the novel trend of digital currency, many new players have entered the league and made huge marks with functional and operational changes in its structures.
Etherum, so far, managed to secure second place in the row, followed by other cryptocurrencies like Litecoin, Namecoin, Dogecoin and so on, standing tall, promising, and determined to pave its way to mass adoption.
Moving on to the second question in the row which is why is there even a need for it?
For us to answer this question, let us first ask ourselves what was the need for bank cards (Debit card, Credit Card) when there was hard cash in place? Why is it so that we gradually shifted our ways from hard cash to plastic money?
The simple and crisp answer would be ‘to integrate the technology in our payment system in such a way that it could make the tasks easier and efficient.’
So is the case with cryptocurrencies, the cryptonomics (the economies of cryptocurrency) involved in cryptocurrency is so revolutionary that it is competent to change the order and flow of power. And with this, establishes the new norms that haven't been seen as yet, i.e. making the masses their own boss!
Also, with big brands and companies readily accepting it as a source of payment is a great deal for the people to mould their ways a bit and learn how it is that one can safely play with these digital coins and make way for the improved and modular payment resource.
Now hopping on to the full and final section of the post which is to address the concern that whether a cryptocurrency is a safe mode of investment or not?
Cryptocurrency, as we discussed, is a digital currency that finds its identity within computer systems. Among the risks involved with its adoption is the ‘risk of being hacked.
As cryptocurrency evolved, we have witnessed many cyberattacks signalling it to be the most common threat associated with it. Many cyber extortions took place demanding the ransom in bitcoins, creating confusion and uncertainty in the minds of the people regarding the security side of the bitcoin.
Now, for us to be participating in a game, the risk of losing the game is always there but does that mean that we should quit the game from the fear of losing it?
Likewise, in the wake of hackings, the experts came up with sound opinions of keeping the bitcoins in the cold storage, i.e. keeping it in hardware wallets, mobile wallets, paper wallets etc.
Also, the volatility of cryptocurrency based on its demand and supply is yet another concern that can lead to sharp gains and losses.
To counter it, we would say, financial markets have been this way ever since but do you think its volatility has ever been a cause of it being out of the question?
That explains it for cryptocurrencies explicitly! Isn’t it?
The final verdict is left upon you whether you feel enthusiastic about these budding coins or not!
The best way to conclude about the safest mode of investment is not to find an alternative that does not involve any risk but to find ways of eliminating the risks involved in an alternative.
Cryptos certainly hold great potential and need to be explored with time. It's just about committing to it in the testing times or beyond!