The year 2021 was exceptionally good for Bitcoin. It remained in the news for being beneficial for its investors, making others search for it on the internet. Bitcoin and Cryptocurrency were some of the most searched topics on the internet, which proves that people are getting interested in them with great enthusiasm even though without knowing the risks for Bitcoin users.
Bitcoin’s price fluctuated throughout the year. At its highest point, it was closed at 60,000 dollars. Whereas, at its lowest, it was valued at 30,000 dollars. A lot of people have started getting interested in it by converting it into their long-term savings and a viable retirement plan.
Hence, the google search regarding Cryptocurrency surged to its highest in the year 2021. This article intends to answer all your questions!
What Is Cryptocurrency?
A decentralized form of currency that is digital in nature is Cryptocurrency. It comes with various names and is used as a means of exchange or payment. It has a store value, which you can utilize to buy goods and services from those who accept it.
Carrying Cryptocurrency in the pocket is not possible. It comes in digital form, which means that it is not tangible. If you need to make any transaction, you will have to do that online.
Another fact about Cryptocurrency that you need to know is that they are decentralized. This means that the whole system of digital currency is not backed by any governmental organization. Hence, the users maintain it by following the rules and procedures.
- What Is Blockchain?
Blockchain is the platform on which Cryptocurrency lies. While selling, buying, or even trading cryptocurrencies, this platform records them. This happens on a ledger that is categorically decentralized. It is known as the blockchain. This is a permanent record that can’t be changed. Alongside this, if there are any changes in it, they are to be approved by the users by the majority.
With this blockchain system backing and recording the crypto transactions, the whole record-keeping system becomes extremely reliable and safe. This helps the new investors in trusting it with their eyes closed.
- What Is The Aim Behind Cryptocurrencies?
Now, this is a legit question. When there already was a system of real currencies, what was the need to come up with the concept of Cryptocurrency? The answer is pretty simple; people need an electronic cash system.
To make day-to-day transactions hassle-free and extremely efficient, cryptocurrencies come in handy. Using them, you can buy and sell the products and services without having to worry about tangible sources of cash.
However, the prices of bitcoin fluctuate regularly on a daily basis. Hence, it may not be the perfect fit for a lot of people when it comes to regular spending. Bitcoin that is worth 50$ today may end up being a mere 20$ the next morning. This is the major reason why it is not the most widely accepted form of payment.
- Is It Worth Investing In?
Yes, though a lot of people do not trust it when it comes to being a means of exchange, as an asset of investment, Cryptocurrency has been quite promising. Both bitcoin and Ethereum have a huge fan following when it comes to investing in them. The speculative trend in the market has the ability to turn investors into millionaires in a short period.
One reason why crypto lovers are opting for it with great enthusiasm is the aim to sell them off at a greater price. Just like the traditional investments, they hope to use it as an asset, which can be sold off at a price greater than the purchasing price. The growth that it shows over time makes it a reliable form of investment.
Getting to know about cryptocurrencies and how they work is essential in today’s date and time. With the world getting digital in every possible form, it is not far when everyone will adopt the digital forms of currencies as the accepted method of exchange. Hence, while you have time, be aware of all the aspects of Cryptocurrency and how it is traded.