Bitcoin has been soaring to new all-time highs. Even though investing in it can be a rollercoaster ride that comes with many risks, that hasn’t stopped many crypto enthusiasts and fanatics from jumping aboard the crypto train. One of these happens to be the Chief Executive of Tesla, Elon Musk, who purchased a $1.5 billion stake in it. As well as investing in it, the electric car manufacturer is now expected to accept digital money as a form of payment from its customers.
The announcements and buy-in from institutional investors are pushing Bitcoin’s price to new records, going above $60,000 per coin for the first time ever last Saturday. The decision of Bank Of New York Mellon, America’s oldest bank, to allow cryptocurrencies and its services is surely proving to be another boost for the digital asset.
Bitcoin seems to finally be on the way to gaining mainstream credibility. And in its wake, many other cryptocurrencies such as Ethereum have been riding the waves along with bitcoin, recording surges in values as well.
How Do Cryptocurrencies Work?
Cryptocurrencies are completely virtual and exist in the form of computer files stored in a digital wallet. Transactions are made with no middlemen which essentially means they bypass banks since they are decentralized in nature which cuts back transaction costs. Digital currency can be used to buy goods and services but unfortunately, only a limited number of retailers currently accept it as payment. However, this number is expected to significantly increase within the next few years.
The payment takes place under a system called “Blockchain“. This is unique to a few cryptocurrencies and is said to make them safer. To put it simply, instead of one person recording the transaction, it records transactions across the internet and stores them across thousands of computers at once.
Bitcoin is simply the first, with its inception in 2009, as well as the most popular version of cryptocurrencies. However, over the last decade, more than 4000 new types of cryptocurrencies have sprung up.
Why Opt For Cryptocurrencies?
The global economy is slowly but surely moving towards a digital ecosystem. From investment to money transfer, almost everything has become paperless. Perhaps, the newest and most promising addition to the digital payment sector is a cryptocurrency that has been rapidly gaining the public eye. But of course, there are a number of reasons for the increased use and interest in crypto.
The use of cryptocurrencies opens your world to a wide range of investment opportunities all the while giving you direct control over your investment. The crypto network allows for faster and cheaper transactions due to the absence of intermediaries such as banks and governments. The system is relatively secured and free from the intervention of any third parties.
One of the main reasons today, however, seems to be the defense crypto has against inflation. Bitcoin, for example, is seen by many supporters and financial analysts as an investment akin to gold. Unlike fiat currencies that can seemingly be printed at the will of politicians of a particular country, bitcoin has a cap of about 21 million coins. Many investors, thus, regard bitcoin as a scarce asset that could increase in value and has done so, while other fiat currencies depreciate.
The availability of the trading platform and bots has definitely changed the crypto trading game for many novice investors and traders that now view it as a safe haven. These platforms, such as British bitcoin profit, are driven by Artificial Intelligence (AI) that enables trading algorithms to analyze huge data sets accurately. Some even make use of Machine Learning, which is a subset of AI, to adjust to changing market dynamics and maintain the profitability of its users.
Furthermore, due to the acceptance by a number of major companies and institutions, cryptocurrencies can be much more easily traded and exchanged as well be used as a means of payment. These factors, all together, have helped cryptocurrencies reach new horizons of success, and currently, it looks like it’s just the beginning.