Cryptocurrencies

 

You may have heard of cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) and the Blockchain. A cryptocurrency (also called a crypto-coin, crypto-asset, crypto money, or token) is an internet-based medium of exchange that uses cryptography to secure the digital exchange of financial transactions, control the creation of new units, and verify the transfer of it.

The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme.

There was a huge boom for crypto currencies after 2010 and as a result many traders made quite substantial profits in investing into crypto. These days the crypto market is setting its sights on the future of the world by slowly becoming a force to be reckoned with. Many people believe that cryptocurrencies such as Bitcoin and Litecoin will become the primary currency for the next generation.

There is a lot to be said about how the process of cryptocurrencies work and their pros and cons.

 

Pros

Unlimited earning potential

Early access to a new asset class

Location-free workstation

No minimum time or financial commitment

No middle man

High ROI potential

Cons

Extremely volatile

High risk

Unregulated & No ‘set’ value

Susceptible to government regulation

Immature market & Highly emotional

Potential bubble