The Truth About Cryptocurrency
Learn facts, myths, and be able to decide if investing in cryptocurrency is right for you.
What is Cryptocurrency?
Bitcoin is what Investopedia states, “a decentralized, peer-to-peer cryptocurrency system designed to allow online users to process transactions through digital units of exchange called bitcoins.” Shockingly, some major retailers, including Whole Foods and Nordstrom, are now accepting Bitcoin as a valid source of payment.
Benefits of Crypto
- User Autonomy
- Discretion
- Peer-to-Peer Focus
- Elimination of Banking Fees
- Very Low Transaction Fees for International Payments
- Mobile Payments
- Accessibility
Generally, cryptocurrencies or crypto are digital assets used for investing and purchasing online. For example, Bitcoin is easily the most famous cryptocurrency. However, even Facebook has created their own flavor – Libra.
Comparing Pros and Cons
There are many pros, and, unfortunately, cons of using crypto like Bitcoin, Litecoin, Ether, Ripple, or others.Â
| Pros | Cons |
|---|---|
|
To trade crypto, you need only an internet connection and a few dollars that you transfer to a digital asset exchange. |
Crypto trading is illegal in some countries and unregulated in most. |
|
There are over 300 different digital asset exchanges globally. |
Cryptocurrencies are volatile. Unlike traditional stocks, crypto goes through extreme ups and downs. |
|
Standard wire transfers and foreign purchases typically involve fees. Since Bitcoin isn’t aligned to an institution or government, these costs are usually low. |
Cryptocurrencies can be used for fraudulent activity. |
|
With only a smartphone or a computer, users can send and receive bitcoins. Thus, Bitcoin is theoretically available to populations of users without banking systems, credit cards, and other related forms of payment. |
Cryptos have an unproven rate of return. |
So...Should You Invest in Cryptocurrency?
Well, we can’t tell you for sure how crypto is going to go for the next few years. On one hand, some individuals would say Bitcoin is the future of currency. Conversely, in this video, and others, Chris Hogan talks about one of “The Things That Millionaires DON’T Invest In” – Bitcoin.
In Conclusion
In today’s market, it’s hard to say whether cryptocurrency will continue to rise or not. However, as of 2019, a staggering $2.9 billion was spent on blockchain technology. Do you, or does your company use crypto? Let us know in the comments below!Â
The Benefits of Blockchain for Information Technology
Do you have a vague idea of what blockchain is, or are you eager to learn more about how it relates to Bitcoin?
Learn More NowResources & Further Reading
Hogan, C. (n.d.). 4 Things to Know Before Investing in Cryptocurrency. Retrieved January 12, 2021, from https://www.chrishogan360.com/investing/investing-in-cryptocurrency
- Lielacher, A. (2020, March 17). Crypto in Numbers: 50+ Cryptocurrency Statistics and Facts. Retrieved January 12, 2021, from https://www.blocksocial.com/50-cryptocurrency-statistics-and-facts/
Reiff, N. (2020, September 16). What Are the Advantages of Paying With Bitcoin? Retrieved January 12, 2021, from https://www.investopedia.com/ask/answers/100314/what-are-advantages-paying-bitcoin.asp