Hello everyone, it's been a while since the last post. I am trying to keep up with the weekly updates on business-related news and views here.
Recently, Trump won the presidential election, despite all the endorsements directed toward Harris. The people's response to the election result is ambivalent, ranging from satisfaction to upset. Before Trump formally changed the economic policy, the stock market, especially cryptocurrency, received a big growth over the past few weeks. After reading about the news, I decided to do some research on cryptocurrency. Today, let's talk about cryptocurrency.
With the recent growth of Bitcoin, many investors started looking into the cryptocurrency world. In the past, cryptocurrency was a foreign investment option to the public. Cryptocurrency is an alternative asset class of its own; they are digital currency that uses cryptography to function without using central authorities such as banks or governments. It is made on a Blockchain system, which makes it nearly impossible for anyone to counterfeit a transaction record. Different from regular currency, cryptocurrency does not need authority to verify a transaction; instead, each blockchain users confirm their own transactions. The cryptocurrency is stored in a digital wallet, so each users have a public key to access their transaction and a private key to access their own account. Additionally, cryptocurrency does not face any legal issues since it is not regulated by any authority; however, it is banned in certain countries.
Because cryptocurrencies are not under the government's authority, it is immune to the government's interference with the market, are cheaper and faster to transfer, and do not collapse easily. Additionally, it can remove third-party interference by keeping the transaction private between only two people on Blockchain. Many said that the reason the cryptocurrency grew as a result of Trump's support. However, there is a possibility that many investors buy cryptocurrency to have an investment that's not swayed by the economy since experts predicted that the inflation in the economy would get worse during Trump's presidency over the next four years.
While Cryptocurrency has its benefits, people should also learn about the instability in the cryptocurrency world. One of the biggest issues about cryptocurrency is cybersecurity. Recently, many hackers found ways to hack into accounts and mine cryptocurrencies on the internet. Furthermore, the transaction on Blockchain could also leave a digital trail for the FBI to track down (No, you are still not free from the government here). Additionally, cryptocurrencies are expensive in general.
Overall, here is an evaluation of cryptocurrency for investors:
- People should not treat cryptocurrency as their sole investment.
- Cryptocurrency is not the best fit for the younger age group who are graduating from college, nor is it for the older age group who are retiring from their job. Cryptocurrency is an expensive and risky option.
- The people who are still employed could consider investing in cryptocurrency because they have a source of money from their jobs to support themselves.
- Instead of investing in one entire bitcoin, for instance, start off investing in a small percentage such as 0.01% of bitcoin or other cryptocurrencies.
- Always research before investing in cryptocurrencies because you may want to know what you're getting yourself into.
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