With the introduction of Bitcoin in 2009, a lot of the world has turn out to be fascinated by cryptocurrency. Inside its first decade, Bitcoin reached the mainstream, turning into a family title. And extra not too long ago, on Sept. 8, El Salvador launched Bitcoin as a nationwide foreign money. Due to its reputation alone, many traders and monetary advisors can not escape the query: Ought to we spend money on cryptocurrency?
To resolve this, let’s first begin on the prime.
What’s cryptocurrency?
Cryptocurrency is a digital foreign money created as a medium for funds that bypasses the standard banking construction. In response to its creator (who has used the presumable pseudonym ‘Satoshi Nakamoto’), Bitcoin was created to be a “peer-to-peer model of digital (funds) . . . with out going by way of a monetary establishment.” (bitcoin.org.)
Bitcoin “mining” is the method of discovering new bitcoins through the use of refined {hardware} to resolve troublesome math issues. Miners are rewarded for his or her work with new bitcoins. Most holders of Bitcoin, nevertheless, merely purchase Bitcoin as an funding, speculating the value will improve.
There are literally thousands of digital currencies, with Bitcoin being probably the most extensively used, taking practically half of the market share (coinmarketcap.com/charts.)
