Oh boy, if you havent heard of what we are talking about today, then you have definitely been living under a rock for entirety of 2017 all the way up until now! It’s on the news, in the papers, it’s all over the internet! I speak of course of cryptocurrency! From two of the biggest bitcoin owners, to the official number of bitcoins in existence, we count 8 things you should know about cryptocurrency! 8.
It’s very unpredictable. Whatever money you have in your hand, be it dollar, pound sterling, euro or yen, it might fluctuate a bit depending on what the exchange estimate its valued at at this current time. If you go and exchange 10 dollars for pounds, you may get a slightly different amount of money back one week to the next, as it is all dependent on what is happening around the world and in countries separate economies. Cryptocurrencies are much more volatile than these tiny little changes, their value can fluctuate extremely easily, and by a lot of value at a time! For example Bitcoin hit its current peak at around Christmas last year, with its average daily price rising to near $20,000! It now stands at just under $9000 which is a massive fluctuation in value.
Because bitcoin is not a centralised currency (meaning its not owned by a bank or governing body), there is no way of regulating its value. And things like a country regulating its members use of bitcoin can effect value greatly. 7. There is more than one cryptocurrency! Bitcoin is the cryptocurrency that even your mum probably knows about by now! It’s swept through the news and the papers and everyone is slightly familiar with its name and what it consists of. But, don’t be fooled into thinking that this is the only cryptocurrency you need to keep your eye on, there are actually quite a few out there! There is Litecoin, that one was made in 2011 and is standing at around £93 and offers a faster transaction confirmation than Bitcoin.
Ethereum is another one, this one was very late to the party, but is currently gaining popularity and enables Smart Contracts and Distributed Applications to be built and run without any downtime, fraud, control or interference from a third party. Dash, formerly known as Darkcoin, is one that has been made extremely hard to trace. So they all have their separate little advantages and disadvantages. And though Bitcoin is the big dog at the moment, it’s important to keep up to date on these ones too. 6. It can be used to buy things from the deep web A lot of cryptocurrencies popularity spawns from the fact that they are designed to be decentralised global currencies.
This means that no one government has control over them and nobody can implement any regulation against them effectively. What this also means, is that bitcoin, dash or ethereum can be used to purchase things from the deep web. The deep web, or invisible web is the parts of the internet not reachable from the search engines your are common with, such as Google or Bing. The deep web consists of cracking a lot of passworded content and things like that, but if you do it right, with the right software you can enter shopping sites for drugs, guns, other weapons even undisclosed services too. Cryptocurrency is extremely popular on these sorts of sites because a lot of them are extremely hard to trace given that it’s not centralised in a country at all. 5. Irreversible You know when you buy something from Amazon that you’ll sure you’ll like, it comes in the post and you’re so excited you tear it open… and it’s nothing like it said it would be, or part of it is broken. Usually, if everything goes right, you can contact the seller and reverse your purchase, you send them back the product and they are able to refund you your money.
Well, don’t expect any such happenings when dealing with Bitcoin or another cryptocurrency. Any exchange made using currency based solely online is completely irreversible, and when I say irreversible, I mean it. Absolutely no one can reverse it, not you, not me, not the police, not your neighbour, not even the inventor of Bitcoin! This speaks to the main aspect of cryptocurrencies, and that is that they are completely unpredictable, and very very volatile, there is really no safety net for those trading or mining currency online. 4. Its free from the trials and tribulations of politics! Cast your mind back to the summer of 2016, if you’re from Britain like me you’ll know what I’m talking about! Britain voted to leave the EU, cancelling all agreements and legislation that they got from that conglomerate and deciding to govern themselves completely independently! Though the future of Britain is unclear even now, many will remember the pound dropped significantly against other currencies! It literally looked like a cliff on the currency exchange! People were extremely scared about the results of something like this, but the pound did slowly sort itself out.
Whether it was the right decision or not, this is a classic case of a currency being affected by a political event. You won’t get any of this with cryptocurrency, because it’s not tied to one country it isn’t really effected by any big political events or happenings! So don’t worry, unless he starts regulating it hard, Trump’s not gonna cost you your bitcoin! 3. Two of the biggest bitcoin owners If you’ve just started with bitcoin, it can be hard to see how exactly you are going to make a load of money off of it! It seems very complex and confusing to get involved with, but there are those that have made a massive fortune off of the stuff! One of the most famous bitcoin owners are the Winklevoss Twins, yes yes the ones you’ll recognise from trying to claim that they were the ones that were created Facebook. Although they got an almighty smack down from Zuckerberg in that case, it does not mean that they aren’t making a lot of money in other places.
They invested $11 million in it back in 2013, which brings their current Bitcoin value to an absolutely astounding $231 million, an amazing 21 times what they originally invested! Though they lost out a bit when they were disallowed from creating a Bitcoin exchange traded fund. 2. it is currency for the younger generation Now, let’s get this straight, some publicity is not good publicity no matter what some people say! Just because a lot of people are talking about you, doesn’t always result in good things happening! Having said this, a whole lot of people are talking about bitcoin, from people hearing it on mainstream news to people studying up late into the night on the internet.
More and more people are cottoning on to the hype! Which is sometimes hilarious, like when you get a 15 year old on Twitter posing like he’s making big bucks off the stuff, all the same a recent survey of the American public concluded that a massive 78% of them knew what Bitcoin is. Interestingly enough, 11% of the people asked told the surveyor that they thought owning it was illegal.
Another interesting trend in the survey is that the younger you are, the more likely you will be to own Bitcoin, or consider owning it in the future. 1. There is a set number of Bitcoins If you’ve looked into cryptocurrency, it may seem like the most unstoppable, awesome thing to ever happen! It may seem like it will never fail and always be moving around. But unfortunately this is not the case, and though it is a digitised currency, there is actually a set amount of bitcoins. This means that there is only a certain amount of bitcoins that can be sold and exchanged.
There is, in its entirety around 21 million bitcoins in existence. So there you have it! A few facts and tidbits on cryptocurrency! Now you can join in all these go-go conversations with your friends about trading and selling Bitcoins and Ethereum. But before you go off and buy your own cryptocurrency, don’t forget to comment any facts we missed off, share this video with your friends and subscribe so you can catch a lot more informative of videos like this!.
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