We recommend the best products through our internal review process and may receive compensation if you visit partners we recommend according to our advertising disclaimer.
Cryptocurrency is relatively new, and unlike other investments or currencies, it lacks something tangible that you can see or hold; it has been greeted with more than a bit of skepticism. There are inherent risks with investing in any new venture. The lack of understanding about blockchain technology and investing in crypto has slowed its acceptance into the mainstream.
Even though cryptocurrencies have grown exponentially in the last decade, they have a long way to go before they become an acceptable form of investment or as a currency regularly used in exchange for goods and services.
What Is Cryptocurrency?
Cryptocurrency is a decentralized and digitized money system which is secured by cryptography that makes them nearly impossible to falsify. It is fast becoming one of the most secure systems of paying for goods and services, as well as, investing.
In an interview with Stevie Johnson on The Crypto Show, Collin Plume, the CEO of Noble Gold Investment Company, talked about the reason why crypto hasn’t become a very widely accepted currency. He said that when it comes to acquiring cryptocurrency as an investment, there’s still a lot of fear of it being a scam. Trust is the primary hinderance to wide scale acceptance to crypto. People are generally skeptical of investing in any kind of new business or industry. The prominent issue people seem to have with cryptocurrencies is that crypto is intangible, so it feels almost obscure to most people.
A major breakthrough over the past year has come from larger corporations and industries deciding to accept the use of crypto as a form of payment. For example, PayPal is now accepting crypto as payment, further strengthening its legitimacy. More people are beginning to accept the fact that cryptocurrencies are indeed real and are here to stay. Currently PayPal is allowing its users based in the US to use cryptocurrencies as a means of exchange and investment without needing to open a new account. Even Dogecoin, which originated as a joke, has taken off.
A few of the cryptos that are fast becoming widely accepted are:
- Bitcoin
- Litecoin
- Ethereum
Blockchain, The Technology
Long before the Bitcoin was introduced into the global markets, much work was put into making cryptocurrencies work, particularly in trying to control the phenomenon of double transactions. Double transactions occur when a person sends amount of a coin to someone and then attempts to send that exact coin to someone else. Initially this was the most prevalent means of carrying out cryptocurrency scams. In 2009, this was one of the problems facing the blockchain technology developers. This is no longer a problem, since blockchain technology has made double transaction less likely due to these breakthroughs in their programming.
Blockchain technology has several uses in modern-day life and can be used in many applications other than investing. It can also be used for making payments. The system developed for payment is entirely separate from its use as a means of investment.
In particular, it has helped combat some of the issues people had with it not being a tangible currency. Before 2009, cryptocurrency scams were more common than they are now. This made it challenging to take cryptocurrencies seriously or as a form of payment for anything since it did not appear to have any real value.
Blockchain technology is built using encryption which make it very secure and is also the reason it is referred to as cryptocurrency. Even though blockchain technology is still being developed and improved upon, in various ways, it has shown that it has the possibility for multiple applications once developed to its full potential..
Conclusion
The concept of Bitcoin and cryptocurrencies, in general, are still in their infancy. There are a many issues that need to be solved when it comes to blockchain technology, especially in the area of privacy protection. It might take a while before it becomes accepted by the general public as an actual means of exchange, but it is rapidly gaining popularity and widespread acceptance. Despite these issues, cryptocurrencies have proven to be the next big thing in the financial world.
The problems facing blockchain technology are not insurmountable. Even though it might take a while before it becomes universally accepted, cryptocurrencies are still a very secure and viable means of investment and financial payment.
Crypto investing made easy. Sign up for our free course and guide. Click here.
If you want to learn more about cryptocurrencies, download the 2021 Cryptocurrency Investment For Free: https://bit.ly/3yzMetg
Follow us on Twitter: https://www.twitter.com/
