Since the beginning of time, money has been used to help the world go round. From the first farmer who wanted to provide his family with more kinds of food, trading has been around for as long as humans have. Since the time of trading goods, currency was developed as a means of paying for goods. It meant it was possible to buy almost any good with enough currency, whereas before it was only possible to trade if the other person wanted whatever it was you were able to offer. However, with all the benefits of using currency, its use created a knock-on effect that would continue for centuries – the class divide. Whilst the class divide always existed, the invention of currency only seemed to intensify it. Who were the ones that were given the most money? Well, the people that already had most of the resources, of course. It meant that people were now at the beck and call of those with all the money.
Nowadays, it is no different. The rich continue to get richer whilst the poorest in society struggle to get by from pay-check to pay-check. Those that can afford to lose their money in the hope of gaining more are always coming up with new ways to make money. Their latest venture? The creation of cryptocurrency.
What is Crypto?
Crypto, or cryptocurrency, is a new, apparently more ‘secure’ form of currency that is supposed to work as an investment that could potentially earn the investor an unlimited profit. It works in a lot of ways like the stock market. There is an equal opportunity for loss as there is for gain. The original creator or ‘creators’, depending on your beliefs, of the original cryptocurrency, Bitcoin, was simply a programmer that posed the idea of a digital currency that would be separate from the currently bank-owned digital currency that was at the heart of online purchases. If you’re still confused, you certainly wouldn’t be the first. Luckily, people have created countless guides for learning about crypto that are available all over the internet. The entire nature of cryptocurrency is very difficult to understand and a lot of it is still shrouded in mystery, even the original creator of Bitcoin is widely believed to have used a pseudonym.
Why Use Crypto?
Many people see the benefits of cryptocurrency and believe it to be the future of online currency. Many people find the gambling aspect that comes with investing in a lucrative cryptocurrency to be an exciting way to potentially make more money. If you invest a small amount in a particular cryptocurrency and suddenly the market value skyrockets, you could wind up with far more money than you began with. In the early stages of the cryptocurrency, online experts are often able to predict which cryptocurrencies are worth investing in. However, as the market becomes. more saturated, the rise and fall of market value can become much more difficult to predict. For the most part, Bitcoin can provide a certain amount of online security and anonymity that can help prevent hackers and thieves from tracking your purchases and stealing your personal details or data.
Risks of Crypto?
However, this promised anonymity has lead to a rise in cyber-crime with the use of Bitcoin making it harder to track the perpetrator. A popular activity amongst technically savvy has been Bitcoin mining. Cyber criminals have developed a malware that can leach off of the CPU of an unsuspecting victim to mine Bitcoin, slowing down the victim’s PC or laptop in the process. Often a time-consuming and at times costly means of receiving Bitcoin without having to explicitly purchase it, Bitcoin mining operations have went through a surge. A swat team in Bulgaria was called to a location after it was found to have an abnormally large heat signature. They had assumed there was potentially a large drug operation going on. But when the location was raided, they realised that the gang had connected hundreds of PlayStation 4s to allow them to mine vast amounts of Bitcoin.
It’s possible to create your own cryptocurrency, which means that many people can create their own cryptocurrency, with very little research or planning required. This means there are numerous cryptocurrencies out there that may be asking you to invest that could make you lose your money if you’re just blindly investing in crypto that you like the name of – not the crypto that has a chance in increasing in value. For example, Kim Kardashian has thrown her hat into the crypto game and has created her own currency to increase her capital. But financial advisors have now come out to advise people to be cautious about blindly investing, as the likelihood of Kim’s currency becoming a usable currency is slim and once the initial hype dies down and people stop investing, it’s likely that the currency could have a crash in market value, which could lead to everyone who has already invested losing their money.
What is the Future of Crypto?
Whilst the future of any currency can be hard to predict, it’s safe to say that cryptocurrencies will be present in society for a long time to come. Whilst Bitcoin is viewed as the original and most widely recognised and used form of crypto, it’s certain that many more cryptocurrencies will be developed over the next decade to make or break the lives of their potential investors.
Read all about my crypto analysis and my best guides for cryptocurrencies.