TECHNOLOGY
CRYPTOCURRENCY THIS RECENT FORM OF PAYMENT IS ON EVERYBODY’S LIPS. BUT WHAT EXACTLY IS IT? ONYX STAFF REPORT
WHAT ARE CRYPTOCURRENCIES AND HOW DO THEY WORK? Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security. NOTE: Cryptocurrency is an incredibly speculative and volatile buy. Stock trading of established companies is generally less risky than investing in cryptocurrencies. NerdWallet
WHY ARE THEY SO POPULAR? Low Fees - There are very few fees associated with using it compared to other forms of payment. No Association With World Governments - This means that cryptocurrencies have the potential to remain stable even when there is turmoil in a specific country. Some investors see cryptocurrencies as a good way to protect their wealth. Potential For Profit - If you buy a cryptocurrency while it’s at a low price, then you can potentially profit when that price rises. Many who invested in cryptocurrencies before they got hot made huge profits. Ease of Use - More online companies are adopting it and more websites are starting to accept cryptocurrencies as payment. Now, cryptocurrency debit cards popping up in certain places. Security – According to experts, using cryptocurrency to pay for things online is actually a lot safer than many other traditional payment options.
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Ease of Access – It is possible to get the cryptocurrency that you want from reputable sources and the ease of getting cryptocurrency has helped it to grow in popularity. It Is The Future - People who adopt cryptocurrency now are also adopting major technological innovations such as blockchain, which is supposed to make trading a much more transparent process. World Financial Review
ARE THEY A GOOD INVESTMENT? It is possible to get filthy rich by investing in cryptocurrency. But you could also lose all your money. How can both of those things be true? Well, like most investments, crypto assets come with a host of risks but also vast potential rewards. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency and the projects or businesses they facilitate. Whether crypto assets pay off for investors will ultimately be determined by whether they achieve widescale adoption. The Motley Fool
