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At the moment, cryptocurrrency is all the rage. Why? Because as the name suggests, it’s an encrypted currency that doesn’t leave a paper trail. And there isn’t just one type of cryptocurrency, there are many out there to choose from. However, the big retailers have only warmed up to a few of them.
But if you don’t know what cryptocurrencies are all about, then this is the article to read. By the end, you’ll be more informed and understand the basics of cryptocurrency.
The first thing you have to understand is that cryptocurrencies, like Bitcoin, are not real. Instead, they are source codes that simply go from one digital wallet to the next. That’s the way that Bitcoin does it, and by using a special code you prove ownership of the cryptocurrency.
So, if you want cryptocurrency, don’t ever expect to “see” the money. And the value of these “tokens” are based purely on what people ultimately give it. In a very political sense, cryptocurrency is made by the people for the people, which brings up the next interesting fact.
Seeing as cryptocurrencies can’t be tracked or traced while protecting the identity of the owner, it’s impossible for governments to regulate them. Of course, they haven’t stopped trying to break the code, but so far they are losing.
With Bitcoin becoming so valuable and influential, it has opened the flood-gates for all the others.
How exactly can cryptocurrencies gain value? Because only a specific amount can be created (mined) before production stops. Bitcoin is another good example. More than half of the amount Bitcoin is limited to have been mined. So, it won’t be long before they can’t be mined anymore.
The ceiling of each cryptocurrency can’t be changed once the information is made public, but the limit helps to put some type of value on it.
If you are thinking about investing in cryptocurrencies, which can be a very smart move, remember one thing. Cryptocurrencies are like all the other stocks on Wall Street, meaning they can lose or gain significant value in a manner of minutes.
A word of advice is to be careful and make sure you have the money to risk. Because as profitable as cryptocurrencies can be, they can put in a bad spot real quickly as well.
Ultimately, cryptocurrrency is the way of the future.