WHY YOU SHOULD CONSIDER INVESTING IN CRYPTOCURRENCY

WHY YOU SHOULD CONSIDER INVESTING IN CRYPTOCURRENCY

Anyone seeking the hottest investment will have been watching developments in cryptocurrency with a discerning eye.

Bitcoin, the king of the breed, has soared in value since launching in 2010. Thirty dollars’ worth of bitcoin bought at launch would have made you a millionaire by now.

Bitcoin’s price never topped $1 in 2010. Its highest price for the year was just $0.39.

Below is a list showing the values of bitcoin over the years;

November 2015 1 BTC -  $376.9

February 2016 1 BTC    -  $439.2

June 2016 1 BTC            -  $674.7

November 2016 1 BTC - $739.0

February 2017 1 BTC    - $1,189.1

June 2017 1 BTC           - $2,420.7

August 2017 1 BTC       -  $4,718.2

Bitcoin has a market capitalisation of over $71 Billion

Introduction to Cryptocurrency

Cryptocurrency

Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Cryptocurrency is a digital or virtual currency that uses cryptography for security.

Cryptocurrency could be categorised into bitcoin and altcoins.

Bitcoin: This is the first cryptocurrency. It was invented by an unknown programmer under the name Satoshi Nakamoto and released as open software in 2009. The system is peer to peer and transactions take place between users directly without any intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called blockchain.

Altcoins: These are abbreviation of bitcoin alternative and thus describes every single cryptocurrency except for bitcoin.

Blockchain: This is a public ledger of all bitcoin transactions that have ever been executed.

Ledger: This is the principal book for recording and totalling economic transactions measured in terms of monetary unit.

Advantages of Bitcoin

i) Freedom of payment

   It very possible to send and get money anywhere in the world at any given time

ii) Control and Security

   It provides an outlet for personal wealth that is beyond restriction and confiscation.

   You have full control of money with cryptocurrency

iii) Information is transparent

iv) Very low transaction fees