FinancialCentre reports – The exponential popularity of cryptocurrency is not coming to an end

London, UK, 5th Feb 2022, ZEXPRWIREThe cryptocurrency market has massively exploded in the past year, and new currencies are hitting the market every month. FinancialCentre Broker Christian Ricci said that cryptocurrency investing is becoming more and more popular as investors look to diversify their assets. Every day we see more people asking how they can get started with cryptocurrency investing and trading, but many of these questions are left unanswered.

What is Cryptocurrency?

So what exactly is a cryptocurrency, and why should you care? Cryptocurrency, or digital currency, functions similarly to fiat money (dollars, pounds, euros) in that it has a value tied to the economy of a nation. Cryptocurrency, however, has no physical form and is decentralised. The idea of cryptocurrency was first introduced in 2008 by an anonymous individual or group known as Satoshi Nakamoto.

Bitcoin is the most popular cryptocurrency that was first on the market. Other cryptocurrencies include Litecoin, Ethereum, Ripple, Monero, Zcash and many more. Christian says that cryptocurrencies are not tied to any one country’s economy. This means that cryptocurrencies can fluctuate in value depending on what is happening around the world. It also means that cryptocurrency is vulnerable to sudden shifts in value. Investing in a digital currency is essentially a gamble.

Cryptocurrencies are stored on blockchain, a decentralised data storage technology that uses cryptography to verify and secure transactions between users of the network. Data is stored in encrypted blocks that make it nearly impossible for third parties to access without an authorised key. Cryptocurrency is sent from user to user, and each user keeps a record on the blockchain of every transaction they have made using their unique key.

Why is cryptocurrency so popular?

Christian believes that there are several reasons why cryptocurrency investing has become so important in the past few years. The first reason is that it acts as a hedge against inflation fiat currencies. Many countries have economies with extremely low-interest rates, which means their currency isn’t likely to appreciate any time soon. This makes it hard for investors to see returns on their money, which is why many are turning to alternative investments like cryptocurrency.

Another reason that cryptocurrencies are so popular is that they don’t rely on the central banking systems of fiat currency. With people continuing to lose faith in banks due to massive scandals and hacks, it’s no wonder that investing in what could be seen as a safer option is becoming more and more popular.

Cryptocurrency offers investors anonymity and privacy. While there is nothing problematic with wanting to keep your investments private, some cryptocurrencies offer transactions that allow the buyer and seller to not share any information about their transaction. This means it’s possible for illegal activities such as money laundering and drug trafficking to be conducted using cryptocurrency.

Furthermore, cryptocurrency exchanges and wallet providers offer their services at a very low cost and with little to no regulation. This means it’s easy for hackers and fraudsters to set up fake companies and steal millions of dollars from investors. Cryptocurrency investment is growing as people see the value in diversifying their assets through a new type of currency. Whether you’re looking for a way to protect yourself from inflationary currencies, wanting complete anonymity or just interested in something that hasn’t been explored before, there’s certainly a cryptocurrency out there for everyone.

American Banker’s report

American Banker Magazine is a credible source for information related to banks, innovation and technology. According to the recent batch of predictions made by them, some findings of a research report have been released. It was said that 44% of the bank executives that were included in the study expect that by the end of 2022, clients will be offered some sort of crypto support. Out of all the included wealth management advisors, 60% said that their clients would increase crypto holdings or start investing in the area by the end of this year.

These stats and projections make us realise that this is not a fad, and it has the real potential to stay and grow its value over time. Christian says that this is a market that can change the world, and we should invest in it while we still have the opportunity. He thinks these figures and projections can easily double in the next year, and it is not a trend you should pass.

However, you must be aware that this is a highly volatile market, and you can lose all your investment very quickly. This is why it’s important to have an exit strategy and always make sure you don’t invest more than you can afford to lose. In the future, it’s likely that many of our daily transactions will be conducted using cryptocurrency. Loans, mortgages and many other financial products that are currently only offered in fiat currency can be offered through this new technology. This means that the market is only going to grow and expand into new areas, making it a lucrative space for investors.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Published On: February 5, 2022