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Bitcoin Basics

I’ve written a number of blogs over the last few years and how Bitcoin reached over 67,000 per digital coin, and then back down to around 15,000 momentarily. Anyone who has courage, knows how to ride the wave, or got onboard early on, might seriously manage to profit from a speculative while volatile market that has burned many investors since its beginning in 2009.

Having a lack of knowledge like the majority of investors is fascinating, as stories of life savings being thrown into cryptocurrency: the newly rich and billionaire status is enough to get everyone’s sight on striking it rich. However, the reality could be completely different as can be seen in the chart. If you had invested in the chart’s midterm then 2021 most likely would mean having lost a lot of money, as Bitcoin crashed at the beginning of 2022. Until now your investment hasn’t built enough momentum though it’s poised to return to its former glory. Tread carefully!

Some experts believe blockchain and related technologies will disrupt many industries, including finance and law. The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure.

Like any other investment, cryptocurrency is not a risk-free investment. The market risks, cybersecurity risks and regulatory risks, as cryptocurrency is not issued or regulated by any central government authority.

According to the International Monetary Fund (IMF) cryptocurrencies can’t deliver their claimed benefits, and instead pose grave risks. The report in the link above explains in detail for those wishing to improve their understanding of cryptocurrencies.

In other words, it might be risky if you decide to invest. Don’t put all your eggs in one backet because the risk is too high. You could make a profit, but potentially you could lose your hard earned savings!

Have a brilliant day!

Pro. Carl Boniface

P.S. Many banks are already incorporating their own blockchain technology in the banking system, so in essence Bitcoin and other cryptocurrencies could become non-essential, as they pose a threat to conventional banking, international monetary legislation, and financial regulations due to several factors, such as the potential for illegal activities, the lack of control over the monetary policy, and the potential for financial instability.

Vocabulary builder:

Blockchain (n) = is “a distributed database that maintains a continuously growing list of ordered records, called blocks.” These blocks “are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Don’t put all your eggs in one backet (idiom) = to risk all one has on the success or failure of one thing. Investors should diversify their investments instead of putting all their eggs in one basket.

In essence (adv) = basically, essentially, fundamentally, at heart, intrinsically, inherently, quintessentially, in reality, in effect, really, in actual fact

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