Cryptocurrencies are a great way to earn some serious money, as well as protect your financial resources from losing value due to inflation.
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Things you should know about cryptocurrency: these 7 cryptocurrency facts are bound to leave you stunned.
Cryptocurrencies are the money of the future and a lucrative investment for those who know how to turn a profit by trading against the market. But what are some of the most important facts you probably haven’t come across as of yet?
1. Cryptocurrencies are unstable by definition
Just by looking at Bitcoin (the oldest and biggest cryptocurrency out there), you can easily spot the fact that its value went up and down as time went by. During certain periods in time, its value saw an increase, and during others, it almost fell down to zero. But Bitcoin, no matter how unstable it is, seems to be experiencing a long-term growth.
2. They take power away from the central banks
If you don’t like the idea of a central bank controlling a particular currency, then transforming your funds to Bitcoin is a viable alternative. Cryptocurrencies may be volatile, but they are not as affected by inflation as it’s typical for other ‘normal’ currencies.
3. Bitcoin, the first cryptocurrency, debuted in 2008
Of course, back then, it wasn’t worth much, but it’s a notable point in the history of cryptocurrencies. This was a time when not a lot of people knew about them, as this kind of knowledge was mostly reserved for the ‘geeky’ types and those with a special interest in them.
4. Some of the cryptocurrencies’ value is boosted by ransomware
Ransomware is a malicious type of software that encrypts the files on your hard drive without your knowledge or permission. The only way of unlocking them and restoring your access to sensitive data residing on your computer is to pay the ransomware developers a handsome amount of money in – you guessed it – cryptocurrencies (more often than not the payments are made in Bitcoin). This is because blockchain technology, the blood and bones of cryptocurrencies, is untraceable by design. Unfortunately, in this case, this acts in the bad guys’ favor.
5. The famous Bitcoin pizza story
In 2009, when Bitcoin wasn’t worth much, a programmer known by the name of Laszlo Hanyecz paid 10,000 BTC to order a single pizza. This turned out to be the most expensive meal of a lifetime; at the time of writing, such an amount of BTC equates to around $100 million, and this is how much money he’d have right now if he held onto it. If only he had known back then. Ouch!
6. Somewhat limited support from established financial institutions
Fidelity Investments offered its support to Bitcoin, but it seems the other similar financial establishments aren’t as likely to follow suit.
7. Most countries still won’t tax your cryptocurrency wealth
Bitcoin and other cryptocurrencies still remain untaxed in most of the countries, since they’re (still) somewhat of a gray area. This is one of the main reasons why so many people are eager to invest; not only do they keep in growing in value, they’re also pretty much untraceable and untaxable.
Cryptocurrencies are a great way to earn some serious money, as well as protect your financial resources from losing value due to inflation. But make one wrong move, and you could potentially lose it all in a heartbeat. Due to this, constantly educating yourself is an undisputed necessity. Cryptocurrency buying and selling can be a lucrative part time Gig.