When we hear the word “virtual”, we immediately start to think not about a real life.
However, does virtual have to be only related to unreality? Nowadays, as technology continues to enhance, people start to understand that the most of the daily operations or things become in an online state, which means that they are losing their physical ability. One of such example is cryptocurrency, which is a digital money that has a value, but physically does not exist. Basically, cryptocurrency is a financial term and it is a type of money stored in an owner’s “online wallet”, which is not under control of the government and central banks. This unique ability makes this form of money be transacted or exchanged easily by peer-to-peer networking with minimum costs. Cryptocurrencies can be used as a method of payment for anything. The owner can easily exchange his digital money for a new real estate, car and even business. Due to such an easy transaction and utilizing a cryptocurrency, this breakthrough started to receive an attention from every financial institution and investors, and today cryptocurrency trading became the most powerful investment trend in financial world which is being inflated more and more.
Back to the history, the first decentralized cryptocurrency called bitcoin was invented by Japanese pseudonymous developer Satoshi Nakamoto in 2009. As it seems, the word cryptocurrency is composed of two words “crypto” and “currency”, the straight meaning of which can support the idea of digital money. After the bitcoin started to gain a popularity and value, more and more alternative cryptocurrencies began to emerge. Litecoin, Peercoin, a non-bitcoin currency called Altcoin and other cryptocurrencies started to use other more developed functions that raised the value of them to a new higher level. Over the past 7 years, Bitcoin’s value has exploded.
Today its price is about 12,000$, which is so huge in comparison with its initial price of 0.06$. Cryptocurrency can be contrasted with related well-known form of investment financing called stock exchange. Holders at both ways can trade between each other at the market and earn on that a lot of money. However, Bitcoin surpassed the stocks of the other business by far. One of the major advantages of trading with cryptocurrency is that it does not require the need of banks and other financial institutions. Due to having a high value and easy access to trade, investors prefer more to utilize crypto investment in the market.
One of the common misunderstandings about cryptocurrency is that some people believe that it is a “pyramid” or concept that considered as a fraud. I personally think that this is a wrong opinion because of the human’s lack of knowledge. More experienced analytics would say that this is a financial “bubble” which is inflated due to its demand, but it is not a pyramid because there is no definite controller in the top of that scheme. Every person under crypto investment depends on himself and can manage his assets on his own. The first time when I heard about Bitcoin I also thought that it is a fraud and people that get in there will lose their money. However, when I once visited my mom’s office I had noticed that one of the employees there were analyzing the statistics of the bitcoin’s price. As having an interest in finance, I asked her about her research and she told me about her investment in cryptocurrency and I was really impressed.
At that moment, after her explanation about this concept, I realized that the cryptocurrency is the very powerful tool to make profits if it will be done accurately. All in all, I personally believe that cryptocurrency is the solid and successful breakthrough in the finance world. It is generally known, that nowadays people are switching to a new technology and most of the resources in this world began to be easily accessible through the network of the internet and digital data. Therefore, experts forecast that the cryptocurrency will be the money of the future.