Why Invest in Cryptocurrency in Today’s Market?
Governments are looking at digital cryptocurrency as an asset and not as a currency.
- Currency is a medium of exchange for goods and services. In short, it’s money, in the form of paper and coins, usually issued by a government and generally accepted as a value for goods or services.
- Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services.
- Money, on the other hand, is a unit of value. The money you hold today you expect will have the same value when paying a bill as compared to when you acquired it. So money is considered of value now or in the future. Profits and losses are accounted for as units of money. Understanding what money is clarified the meaning of currency. Currency is The form of money used every day by people all over the world. Other forms include Checks which are another form of money (known as money substitutes). Cigarettes have even been a form of money, as they were for soldiers during the Second World War or in cell blocks in prisons. Today debit cards are another form of money substitute.
- Today governments see the value of creating cryptocurrency unique to their money system. This enables this to be a centrally controlled blockchain coin that the government can control. China has been experimenting with this type of currency, not treating it as an asset.
- CRYPTOCURRENCY
- Most cryptocurrency that is created on the blockchain and decentralized seems to be the direction the private creators are going.
- This writer must point out that one must research the crypto they are thinking of getting into as a risk. Is there a central controller of the coin’s value? Scams are visible every day as coins are “created” on a blockchain but controlled by an entity.
- For instance, a Binance coin is controlled by a man (Changpeng Zhao) who owns the Binance exchange. Even though the coin’s value fluctuates with the market and the Binance exchange has a history that is trackable and you may trust it, however, think about what you are risking holding BNB, the Binance coin. It is developed by a holding company, it is not on the blockchain, it has value based upon what people are willing to accept as payment, and it floats with the market. It is said to have shared the names of coin holders with the Russian government.
- Some coins are decentralized and not under any company, government, or individual control. These are the coins I prefer. They may fluctuate with the market but I look at the total of coins that have been issued, at what value were they when they started trading, how have they performed since the issue, and who is holding the bulk of the issue. Every coin is a risk, but try to reduce the risk when investing and always be willing to lose the investment. Never invest more than you can afford to lose.
- This is why I prefer Bitcoin (BTC). It has only 21 Million coins issued, is decentralized on the blockchain, is held as an asset by major businesses, and maintains a consistent value (what people are willing to pay for it or give it value. BTC is not controlled by any one person, government, or company.
- I have written a short book with the same title as this essay and you are welcome to download it and enjoy https://www.worldprofit.com/dealers/goodybag/goodies6759035462/bitcoinReport.pdf
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