What is Cryptocurrency?

There are trends and a lot of buzz of the foreign concepts of Cryptocurrency – from Bitcoin, blockchain, to ICO. What do these terms mean? Some people might be skeptical while some people already made a fortune out of it with the value of Bitcoin and other crypto money have increased dramatically. What is cryptocurrency exactly? Here we give you an introduction to some main concept of this disruptive technology that is going to revamp our financial system. The concept of the first major cryptocurrency, Bitcoin will be covered as well.

An Introduction to Bitcoin and Cryptocurrency

Early on, Cryptocurrency has been described as currency for the dark market such as drug deals, money laundering, and tax evasion. However, some digital money like Bitcoin, known as “digital gold”, opens up the financial system and allow us to transact our money in a ground-breaking way—we can transact the money in a peer-to-peer way without needing permission. That is, Bitcoin is a decentralized currency that is not regulated or issued by central banks. By using Bitcoin, you can send or receive money from anywhere in the world, without paying banks transaction fees.

What is Blockchain?

Not like traditional databases that are maintained by a single server, the Blockchains are decentralized and are run by a distributed network of computers. Through the Blockchain, each transaction can be recorded. With this technology, the digital scarcity can be enforced and we can track the ownership of digital assets.

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The Future of Crypto

Some people think Cryptocurrency might disrupt the banking industry since it waives a lot of fees from the bank, which makes it more attractive for investors. Furthermore, for the countries that are lack of a secure and stable financial system, Bitcoin provides an access to their financial service or bank account.  Even though the value of Bitcoin and other crypto assets have gone up considerably, in a long run, we are still at an early stage.

Is it still a good timing to buy Crypto?

As the mainstream market is still adopting the blockchain technology, it won’t be too surprising to see this fast-growing technology appears in our everyday life in the future. You might wonder “should I own Bitcoin?” or “should I invest in Cryptocurrency?” As one of the rule of thumb in investing, it is good that you diversify your portfolio given you have deeply considered your financial ability and situation.

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Should I invest in Cryptocurrency?

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You may want to take your personal consideration into your investment, given the nature of crypto assets can be volatile. It is an area worth experiment with carefully — after all, higher risk is usually with higher rewards. As this is an introductory article about Cryptocurrency, it’s a good idea to keep learning about the industry trend from multiple resources in order to for you to make an informed investing decision.

 

Piedmont Avenue Consulting is a San Francisco Bay Area based business development and marketing consulting firm who creates brand awareness, strengthens customer loyalty, and increases lead generation through leveraging new technologies and streamlining business processes.

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