Cryptocurrencies have long since become one of the most lucrative forms of investment and their popularity is growing day by day. While some see the opportunity to make money in trading, others believe that mining is much more profitable, but also that it takes more time and patience. However, it is still a matter of personal choice as well as the type of currency that the investor chooses. More people are opting for bitcoin because it is the most famous and strongest cryptocurrency, but that does not mean that even the weaker and lesser known ones cannot make a good profit.
Either way, there are many threats but also opportunities when we talk about cryptocurrency technology. Well, let’s start by considering both.
1. Fiat money
This decree money was established by government decree and is an official means of payment recognized by one state, with no official convertibility in physical goods such as silver and gold. The word “Fiat” comes from Latin and means “let it be done”. This money appeared in China as far back as the 11th century. The government is free to print this type of money because it is not associated with any significant value advantage. The difference between cryptocurrencies and fiat currencies is visual because cryptocurrency exists only in digital form while fiat currency can be represented in the form of paper, coin, loan, bond, loan, and so on.
Fiat currencies are used everywhere in the world and this method of payment is acceptable for the purchase of any product or service. We use fiat currencies to send money to other people and they allow us to convert to the desired currency. This is one of the main advantages of fiat currency over cryptocurrency, as it can be used everywhere, and with cryptocurrencies use is still limited. However, there is a downside to the fiat currency, which is that the government prints its value, and by printing a lot of money, there can be a drop in value. So, fiat currencies are centralized, while we know that crypto is decentralized, that is, there is no central authority. You can learn more about it on Londonlovesbusiness.com.
2. Impact on some industries
Many people already own cryptocurrencies and, in addition to making money from them by trading, mining or stocking, they are happy to use them as a means of payment for certain services such as luxury holidays, plane tickets, dinner at the most expensive. restaurant, and even paying tuition to your child. Over time, this method of payment will become more common, because the number of investors in this money is growing day by day. Many industries, as well as finance, will be affected by the new trend and thus sellers will turn more to cryptocurrencies as a means of payment, and thus the focus will be on online sales, which has long been a trend, especially now, during pandemic COVID-19.
We already know that blockchain plays a key role when it comes to cryptocurrencies and the security of investing in them, because its task is to preserve data. In addition to being used in the world of cryptocurrencies, blockchain has proven to be very effective in various industries. To get a closer picture of what the term blockchain represents, we will say that it is a book in which all transactions are recorded, and each is protected by mathematical cryptography. The fact that the blockchain is not in one place and that it is impossible to modify even though everyone has a copy makes it very safe to use.
With the development of technology, growth and ways of fraud. Very often we can see fake crypto platforms made just to take your money. There are also a growing number of hackers who skillfully “break into” your computer and steal your information and money from crypto wallets. One of the indicators that will show you that something is wrong is a significant slowdown of your computer.
5. Accessibility loss
Yes, using a blockchain has a number of advantages, but unfortunately, there are also disadvantages. Since blockchain technology cannot “break through”, this also has its drawbacks, because it means that many transactions end up on the margins for this reason and the mere execution of the transaction becomes useless. We know that there is no intermediary in transactions, and the banking concept loses its place here. On the other hand, we have the fact that transactions can be tracked and that is exactly what is key in this story.
The process of a cryptocurrency transaction requires patience because it can take time, and the more people use it, the slower the transaction becomes. In addition, there is another problem, and that is that there is no help if you lose your password because all transactions are encrypted.
What is still unpredictable is the value of cryptocurrencies because it can change even a few times a day, so at one point you may think you are rich and at another you lose everything.
Like any type of investment, this one carries a certain risk. What matters is that you do everything in your power to avoid it. Just some of the things that will help you make money are hiring a broker, investing in a high security wallet, and that is the so-called cold wallet (hardware) that keeps your money off the internet. Thanks to modern technology, people are increasingly resorting to the use of smart software that monitors the situation on the market thanks to artificial intelligence. It is she who increases the chance of earning money because the result comes a few milliseconds before a man. In addition to all of the above, it is important that you enter wisely. Experienced investors say that you should never invest in one currency, but spread the money over several sides, so that if the value of a currency falls, you will not be left without the full amount.