Is Cryptocurrency A Trusted Investment Tool
Teknatekno.com – You must be familiar with cryptocurrencies right? The most trusted cryptocurrency investment tool today. Blockchain technology to create cryptocurrency, a form of digital money. In our digital age, technical changes are very fast, especially in the economic field.
One of the proofs is the existence of cryptocurrency. Cryptocurrency itself originated to facilitate trading and transactions finance by overcoming the limitations of using traditional currencies.
The convenience provided by cryptocurrencies is an attraction for the community. This is evidenced by the rising trend of cryptocurrency investment, especially during epidemics.
Cryptocurrency itself cannot be separated from the word blockchain. However, what is blockchain? Blockchain technology itself is a data storage medium in the form of blocks connected like a chain, where each recorded data cannot be changed and can only be added.
Blockchain technology binds every transaction like a chain connected to each other and no third party can interfere. The blockchain operation method is divided into three steps, including data folder, data transaction, and data validation.
Cryptocurrency Pros and Cons?
Then, what are the advantages and disadvantages of cryptocurrencies? Due to the anonymity of transactions, these cryptocurrencies have the potential to be used in transactions that violate the law (such as the black market or the sale of illicit transactions).
Because it is not supported by tangible assets and there is no consumer protection, its value is less stable. But aside from the downsides, cryptocurrencies also offer significant advantages.
These advantages include transaction efficiency because transactions can be carried out directly without a third party, also having the potential for technology that can be applied in various industries, and improving facilities in the money market to make it more secure, accurate and fast.
Before making cryptocurrency an investment tool, it's good for us to know the dangers and benefits of investing in this asset. The wild swings in the price of cryptocurrency have made it a household name.
Cryptocurrency as an Investment Tool?
Of course this can be a separate comment for potential investors in avoiding losses from investing in cryptocurrency assets. However, beneath this significant risk lies a treasure mine of rich assets for potential investors.
This hidden gem has a high rate of return. This advantage is obtained from prices that can move up and down quickly. Investors can get this high return if they can take advantage of the time when the cryptocurrency's value is at its peak.
Remember, the future of cryptocurrency looks bright, don't you think? In December 2017 the Bitcoin price jumped to $20,089. This rise has made it one of the most stressed cryptocurrency assets.
When many sectors of the economy and business have slowed down due to the epidemic, the cryptocurrency industry is picking up speed again, including Bitcoin. Even though the supply check was passed in March 2020, the cryptocurrency market is enjoying a significant surge as a result of an influx of traders and investors.
Different variables such as the adoption of Bitcoin by many large companies in the world to the legality of Bitcoin in various countries have influenced the development of the Bitcoin price from year to year. Currently, the price of Bitcoin is steadily increasing and gradually attracting public attention.