Cryptocurrencies – In 2009, Satoshi Nakamoto, a pseudonym used by the creators of a Bitcoin protocol, invented Bitcoin. This person’s or group’s physical appearance is unknown. Instead of centralized banks, it was developed as a decentralized network that decides the value of a currency. The financial crisis of 2007-08 catalyzed the establishment of such a network. “Banks must be trusted to keep our money and move it electronically,” Nakamoto quoted as saying, “but they lend it out in waves of credit bubbles with scarcely a fraction in reserve.”
The belief in cryptocurrency founded on the concept of a network that stores the currency on a blockchain, which is basically a chain of transaction memories (blocks) on a “trustless” network. Since the machine on the system keeps its record of transactions, which then compared to others’ records, a blockchain ensures transparency. It eliminates transaction duplication, which has long been a problem in digital currencies’ growth with no physical presence.
The government determines the value of a traditional currency. As in 2016, the government will remove its promise of a piece of paper at any time. It isn’t easy to do so for cryptocurrencies since it needs agreement from at least 51% of the network’s members. A single institution cannot unilaterally reduce its worth.
What caused the value of cryptocurrencies to skyrocket in 2020?
The value of cryptocurrencies calculated by a simple demand-supply function, as previously stated. There were just too many people involved in purchasing cryptocurrencies, and money began to flow in. It’s worth noting that, even though the supply of Bitcoins grows every day. The number of Bitcoin units available for purchase today is lower than it was in 2017, restricting its availability. Many analysts believe the pandemic aided in the huge investor confidence in Bitcoin, which has seen conventional assets lose value this year.
Trading as new normal
People worldwide have accepted Forex trading as another way of income. And started investing much more time in learning about it than ever before during the pandemic. Having a licensed and certified Forex broker is a must, and researching about them before opening an account helped decrease the number of Forex scams immensely. You can find many regulator websites (depending on your area) where you can see if the Forex broker you interested in is on the list of licensed companies or just another scam. There are also many free courses on respected websites on trading and how to get into that world.
Bitcoin has gone from a niche commodity with a reputation for only having value on the dark side of the internet to regularized by governments. Increasingly embraced as a payment mode and gaining respect as a potential asset. PayPal has also accepted Bitcoin and other cryptocurrencies as payment methods. Customers can now easily buy and sell Bitcoin on PayPal’s website. And use them to transact with PayPal’s 26 million merchant. It allowing cryptocurrencies to become more common and accepted in the future, especially in 2021 and the constant rise of Bitcoin.