Cryptocurrency is continuing to make its way into the mainstream public and jumping on that train early, maybe prove to be the extra retirement money you need down the road. Cryptocurrency is a completely digital currency. It was created online and lives online. It’s primary trading source is online and in some cases, it is limited by its creators to never be affected by necessary financial woes that happen out in the real world. In all of its many forms, the most recognizable cryptocurrency, especially in modern news cycles, has been bitcoin.
Bitcoin typically conjures up images of the dark web and hackers taking over businesses, demanding a ransom. However, it’s much larger than that and has seen a significant increase in value year over year. $100 USD in bitcoin in 2010 would be worth nearly five million USD today. That’s a significant increase. Bitcoin is also becoming more widely accepted at markets across the globe, and could potentially be saving lives in Venezuela as it has become a currency alternative as the value of the dollar there drops to nearly nothing at all.
There is some thought that cryptocurrency is immune to inflation and, if that turns out to be true, would make it the most valuable form of currency available today. Inflation and printing more money has continuously driven down the value of nearly every dollar on the planet. With cryptocurrency, there is a limit set of how much can be printed, and once that limit is set, the minting of new coins cannot be done. This leads to the value of all of the printed or minted currency increasing, working on a demand schedule.
Cryptocurrency is also impossible to counterfeit in any traditional way. Because every transaction is stored online on a network of computers, no one can change the transaction information. Even being able to do so would prove as an error across the consensus of network computers and be immediately fixed based on the data available across the entire network. A lack of counterfeit not only makes your cryptocurrency retain its value, but also drives down the need for regulation on such acts, which again cuts down on cost and solidifies value.
As of now, die-hard crypto fans will tell you that it’s the future and the only way to go, but officials warn that skepticism may be more important at this early stage. If you have some money you would like to invest in a short term setting, this may be the most profitable method of doing so, but funneling in your life savings may turn out to be a bigger risk than you can afford, especially given the volatility and flexibility of the market in cryptocurrency. As always, be safe and invest intelligently, with research and diversification. With the knowledge of the market on your side, you will feel much more comfortable about your choices going forward.