Introducing yourself to cryptocurrency is the wave of the future. We are now in a full digital society, so what better way than digital currency. Cryptocurrency is a form of payment that can be exchanged online for goods and services, just like any currency While cryptocurrencies can be used to buy things, much of the interest in these unregulated currencies is to trade them for profit, with speculators at times driving prices skyward .
Supporters see Cryptocurrency appealing for a number of reason. Lets mention Bitcoin as the currency of the future that has everyone buying, presumably before they become more valuable
Will it stay up? Or come crashing down?
Nolan Bauerle, research director at CoinDesk, says 90% of cryptocurrencies today will not survive a crash in the markets. Those that survive will dominate the game and boost returns for early investors. And those returns are substantial, if one can believe RBC Capital’s estimate of a future $10 trillion market for cryptocurrencies
A good place to start is the top 20 most traded cryptocurrencies, if looking for the survivors. Some prominent survivors in this listing, if and when a crash does occur in the cryptocurrency markets. Bitcoin is the original cryptocurrency and is fast emerging as a store of value. Its blockchain and codebase also spawned offshoots, such as Litecoin and Bitcoin cash. Both are angling to become the preferred cryptocurrency for daily transactions.
Cryptocurrencies where investors will need higher risk tolerance. Similarly, Request Network claims to be the future of commerce but that vision itself is actually a recent pivot from one for an online money transfer aggregation service. The cryptocurrency’s white paper announces multiple use cases for its coin, from the internet of things to online payments and implementing business logic for government laws
What We Think
Cryptocurrencies such as bitcoin may not be that safe, and some notable voices in the investment community have advised would-be investors to steer clear of them. Legendary investor Warren Buffctt compared bitcoin to paper check, saying “it’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Checks are just like cryptocurrencies. The technology of transfer currency is called Blockchain, is a decentralized technology spreading across many computers that manages and records transactions.
Beyond those concerns, just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. One high-profile exchange declared bankruptcy in 2014 after hackers stole hundreds of millions of dollars in bitcoins. Those aren’t typical risks for investing in stocks and funds on major U.S.exchanges.