Cryptocurrencies are forms of virtual currency that use cryptographic techniques to authorize and securely verify transactions and therefore do not require a central counterparty for processing. Although created as an alternative to the traditional financial system in the aftermath of the global financial crisis, traditional financial institutions have now begun to include products based on the topic of make money with Cryptocurrency.
In December 2017, for example, the Chicago CBOE and CME derivatives exchanges launched Bitcoin futures trading, and the New York NASDAQ is considering listing Bitcoin, Ethereum, and other cryptocurrencies next year. Bitcoin, the most popular of the digital currencies, has recently returned to the spotlight because, following the Chinese crackdown and anti-bitcoin tweets of Tesla’s number one, it has reached its maximum annual volatility, halving its value.
Will cryptocurrencies be the money of the future?
Bitcoin. But also Bitcoin Cash, Dash Coin, Litecoin, Ethereum, Monero, Ripple. Just to name the most famous. And again, Tether, Stellar, Neo, Dogecoin, Bitcoin Gold. And we could go on. What am I? Cryptocurrency. In other words, it refers to the definition of “… hidden” currency, in the sense that it is visible/usable only by knowing a certain computer code (“access keys”) public and private. ” Cryptocurrencies do not exist in physical form (also for this reason they are defined as “virtual”) but are generated and exchanged exclusively electronically.
Therefore, it is not possible to find bitcoins in circulation, to name the first and most famous of the crypto, in paper or metal format. To find out more, experts recommend that you be well-informed and always read reviews, such as for the crypto merchant.
Several things need to be said, explained, and well understood when it comes to cryptocurrencies and investment companies. The first is that virtual currencies are not legal in almost any corner of the globe. Therefore, acceptance as a means of payment is made voluntarily. If you want to buy something, and they tell you to accept payments only in bitcoin, it is up to you to decide whether or not to do it.
This is because virtual currencies are not regulated by central government bodies (central banks), but are generally issued and controlled by the issuing body according to its own rules. Rules that members of the reference community agree to follow.
Is Bitcoin the new gold?
According to the big supporters of bitcoin, the fact that the cryptocurrency was designed to reach a maximum of 21 million units can be considered an asset with a stable value, similar to gold.
However, the yellow metal has been considered the quintessential asset of refuge for decades and is still seen as one of the most stable investments today. This is also because gold, like other commodities, is an asset that is not very prone to market fluctuations, therefore more stable and less prone to inflation.
Therefore, the present leads us to think of bitcoin and cryptocurrencies primarily as speculative assets, ie financially tradable by betting on price fluctuations, rather than stable and inflation-resistant assets such as gold.