Is Cryptocurrency Going to be The Future Investment Portfolio
Mutual fund, gold, real estate, stock market, and now cryptocurrency. Every person wants to create a good wealth for their future by investing their money in some highly profitable financial product. While some are okay with comparatively low profit as they don’t want to risk their fund, there are crazy people who want higher profits at any cost. And cryptocurrency is their new most lucrative platform.
How Cryptocurrency Works?
It is nothing but a currency exchange platform. It was supposed to become an alternative to various types of currencies across the world. However, right now, it has become an investment platform. It is a decentralized platform scattered across the world, where every investor purchases coins and thus new demand is created and the price goes high. Similarly, when someone sells their coin, the supply increases and the price goes down.
Who Controls Cryptocurrency?
Well, cryptocurrencies aren’t controlled by any government and thus it has literally no limit for the price to go up or down, which makes it so lucrative — and risky as the same time. If thousands of people invest in any single crypto, they price may skyrocket within few days, and vice versa. That’s make this platform so volatile and risky. In 2021, the Bitcoin price increased to $65000 from $28383 within a short time.
Why Cryptocurrency is Called as Blockchain?
Cryptocurrency works on a decentralized blockchain technology where the system is distributed among its thousands of users. The data remains securely encrypted and only a legal user can access and track the transactions. As it is a decentralized system, to ensure high security, you need to use at least 16 character password. This is a common reason, many users often get locked of their account and thus their asset, just because they forget their account details.
So, Basically Cryptocurrency Is Not Legally Regulated by Any Government, Right?
No, in the year 2021 the Securities and Exchange Commission (SEC) included Bitcoin as a legitimate investment vehicle and so, it can now be traded as a Exchange-Trade Fund (ETF). Chicago Mercantile Exchange tracks the price of Bitcoin through its exchange and so, you can also check the current price from their exchange.