“One day American people went to the mine. They always want to find gold there. That day they were lucky, because they blew up some of the rocks and found the gold there.”
Call it a digital gold rush.
The craze around cryptocurrency, an online form of payment, has erupted across the internet in the last few years. In a technology-driven society, this new payment system has investors and economists buzzing because of its decentralized approach. Much like the famous gold rush of 1848 where there were no laws or claims to abide by, cryptocurrency operates without banks or intermediaries.
Cryptocurrency takes a digital monetary form that can be bought or sold online. Crypto does not have a physical form, but does have value offline and can be exchanged for digital assets.
Every time something is bought or sold with cryptocurrency, it is added to the blockchain. The blockchain is a public database of transactions, much like a receipt, that keeps a record of data. To validate these transactions, crypto is “mined,” which ultimately decreases the processing fees for everyone. After purchasing cryptocurrency, you can store it in a digital wallet where it can be kept safe and secure.
There are multiple types of cryptocurrency, and the most commonly known is Bitcoin. Others are referred to as altcoin, and there are currently more than 10,000 on the market including:
According to Statista, there are 5.6 million monthly downloads of cryptocurrency wallets worldwide, with the global blockchain technology market expected to hit upwards of $39 billion by 2025. However, even with its upswing, economists are weary. Its instability in the market, questionable forecasted value and lack of regulation leads many to wonder whether it is simply a fad. Yet many still boast its positives, including the ease of international transactions, security and flexibility of payments far outweighing the negatives.
Love it or hate it, cryptocurrency is here to stay — for now. While many want a slice of the cryptocurrency pie, it can be difficult to figure out how much to invest, what types to invest in, and how to make it work for your specific circumstances. Luckily, there are now ways to easily buy, trade, sell and earn crypto with MoneyLion that don’t involve watching the fluctuating markets. Roundups, automated investments and even mobile phone apps now offer crypto features that make it less complicated and easily accessible to everyone.
Is decentralized banking the way of the future? Or is this a product of the ever-growing technology world? It is unclear, but there is one thing that’s for sure: You won’t want to miss this.
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