There are myriads of investment systems all over the world. Some of them are universally acceptable while some are only operational in specific locations.
We have also gathered that investment systems prove themselves over time. More often than not, people study the market and determine if staking their hard-earned money in it is worth it. Many people that have invested in a hurry have lost as a result. For more on this subject, you can read this.
Taking years to study an investment system is not wrong but there are a few exceptions. Some systems have proven themselves as credible and profitable over and over again in such a short while. Well, cryptocurrency is one of such.
This digital form of investment that works with Blockchain technology models only came into the picture in 2009. Yes! It has only been around for 12 years but you hear about it almost every time. This is why we have decided to fill you in on some things you should know about it.
There Is an Economic Explanation
To be candid, we have more people that do not know enough about crypto than people that do. The more shocking fact is how even those that have invested and made huge returns still do not understand how it works.
They simply invest in a digital currency that has huge prospects and they earn as the value increases over time. Well, it is only ideal that you know the way it works. And for starters, there is an economic explanation behind crypto.
This is based on the economic law that infers that value increases when demand exceeds supply. So, how is this?
First, you should know that the coins are digitally mined. Secondly, the mined coins are not unlimited. As a result, excessive demand for a digital currency (as it is limited) will cause the value to increase. So, the more people become aware and interested in purchasing a cryptocurrency, the more it increases in value.
Some Unknowns about Its Source
There are many cryptocurrencies in the world and known brains behind them. For instance, Vitalik Buterin is said to be the brain behind Ethereum. You should know that this is one of the most sought-after digital currencies in the world.
But while the profile of Ethereum’s founder and the brain behind many other cryptocurrencies can be easily obtained, it is not the same for bitcoin’s. Despite being the first and most popular digital currency, there is so much unknown about its founder.
It would even interest you to know that the word “crypto” has a Greek source. It means “private or hidden”. The closest analysts and people know is that Satoshi Nakamoto is likely the founder but even this cannot be proven.
It gets more complicated because the identity of Satashi Nakamoto is unknown even if s/he is the founder. So, there are so many unknowns as regards the origin of the first cryptocurrency.
Banning Cryptocurrency Completely Is Impossible
It is unlike many other investment systems. You can even choose to see it as unique because it is nothing short of this. This is why it is not entirely affected by opposing policies by government administrators.
This is why it is practically impossible to get investment and earnings from digital currencies banned. For the record, many countries have attempted to do this but it has not worked. Right under their noses, citizens invest, trade, and even earn from it.
Turkey, Nigeria, Bolivia, Algeria, Ecuador, and India are examples of governments that have tried to end it on their soil. However, it was a lost battle even before it started. For instance, people have resorted to peer-to-peer transactions in Nigeria, and so crypto owners are not affected by opposing policies.
Many Options and Ways to Benefit
You can properly evaluate the market and choose the right digital currency among the many options with this Blockchain investment setup. This is because there are many options to consider. You should also know that more options are coming up.
Speaking of options, you should also know that there are various ways to invest. This means it is not always about putting down your cash. This can happen in some other ways. Contributing your network’s excess bandwidth is one of such. You can check out PKTpal.com to learn more about this.
Bonus Tip: Most Popular Digital Currencies Other than Bitcoin
It is not a secret that everyone in the world has heard about Bitcoin. Without any doubt, it is the most popular and pricey crypto in the world. However, as mentioned, the cryptocurrencies offer many options. Bitcoin is not the only option that you have.
That can be a massive inspiration for people that can’t afford to invest a lot of money. Because of that, it would be good to speak about other digital currencies that are popular and have potential to grow. Let’s find a few of them together!
Believe it or not, the market cap of this crypto while you are reading this article is nearly 70 billion dollars. There are many reasons why Cardano has become attractive, and one of them is proof-of-stake. This method is good for multiple reasons – it requires less electrical energy which automatically influences the environment in a positive manner. Another reason why Cardano is good for many traders is smart contracts. The decentralized apps as well as smart contracts are fully supported by ADA, the native coin of Cardano.
The price of one ADA is around $2 which makes this crypto even more attractive. However, something more impressive is the improvement of its value of years. Only 4 years ago, the price of one ADA was 0.02 dollars. That means its value has jumped for 10 000 percent.
The market cap of this crypto is nearly 65 billion dollars. However, there is something unique about Tether that you need to know. This is not a typical digital currency as it is directly connected with some fiat currencies (including Euro and Dollar). More precisely, it is a stablecoin that keeps its value equal to these two fiat currencies. In theory, that should mean that Tether will never experience a strong volatility which many people consider as a less risky opportunity. However, we will see in the future whether something like that is true or not.
Have you heard about Ripple? Well, XRP is actually a creation of some of its founders. People can use CRP on Ripple to exchange their XRP to other cryptos or fiat currencies. Just like in case with Cardano, the progress of this digital currency is something that will impress you. The value of one XRP was only 0.006 dollars 4 years ago (almost five). Currently, the price of one XRP is 1.15 dollars. When we translate that into percentages, that would mean the price has jumped for 19.000% in only 4 years.
P.S. The market cap is around 52 billion dollars.
Last, but not least, the crypto that deserves your attention is Polkadot. The market cap of this crypto is only “25 billion dollars”. However, keep in mind that Polkadot appeared on the crypto market in 2020 for the first time. For only one year, its value has jumped 774%. In 2020, it was $2.93, and now is a bit more than $25.
The reason why this crypto is attractive is its ability to connect different forms of blockchains. If the creators of this crypto manage to reach their goal, then it may happen that the crypto world will change forever. People will differently manage their cryptos when they can use connected blockchains.
Many people are unaware of how the cryptocurrency system works. In addition to that, their knowledge of the Blockchain technology system is insufficient. This is why we have discussed 4 facts you should know here. We hope that you now know more about cryptocurrency and can make better decisions when investing.