When Satoshi Nakamoto first introduced the concept of cryptocurrency in ‘his’ 2008 white paper dubbed Bitcoin: A Peer-to-Peer Electronic Cash System, hardly did anyone comprehend just how much of a ripple effect this new invention would create across the investment world.
Barely a decade on, and the concept of digital coin is promising to shake, if not shape, the future of finance.
It was not until only recently that the whole idea of digital currency and the blockchain technology caught on. And when it did, everything about crypto currency started going through the roof.
Constant rise in bitcoin prices show investors’ confidence in the technology
Over the period of 2017 alone, the value of bitcoin soared to a closing price of about $19,000 a coin. It’s hard to ignore just how rich the individual behind the crypto concept would be today, having disappeared with nearly a million coins at the close of 2010. Nonetheless, this steep increase in price over the recent past only serves to reflect investors’ growing confidence in these new forms of payment.
It is important to note that it has not always been growth all the time; the price of this digital currency has fluctuated quite a bit over the last few years but regained its growth momentum each time. Investors expect that kind of trend to continue, but are confident that the technology is here for the long haul, with the potential to become a lasting fixture of the global financial system.
Now, there are studies indicating that bitcoin as an alternative form of payment is more popular among millennials compared to baby boomers, some who still consider it volatile. From an investment standpoint however, the coin’s popularity is not limited to a specific age bracket. Its recent spike in value has drawn interest from investors of every caliber around the world – a trend that is likely to continue into the foreseeable future.
Crypto currency is allowing for freedom from regulatory bottlenecks
Trading in bitcoins and other forms of cryptocurrency has introduced a unique advantage that many investors find appealing: exploiting a regulatory gap. Unlike selling shares and bonds, trading in the peer-to-peer electronic cash puts investors outside the scope of regulations governing securities. This effectively removes most constraints that would usually limit how these investors market their offerings.
Bitcoin provides a trading system where money is exchanged without the involvement of a centralized bank or regulating authority. Transactions on this system occur directly from one person to the other – protected by cutting-edge computer encryption.
To trade in these digital coins, you need a digital wallet such as xCoins, in which you can buy bitcoin for yourself and lend them out to buyers. Even more interestingly, having such a wallet allows you to also passive income with the digital coins through affiliate programs that some platforms offer.
Entrepreneurs are creating new startups focused on blockchain
Cryptocurrency is increasingly becoming mainstream with new startups sprouting up that are actively investing in emerging cryptocurrencies. There are also companies that assist other cryptocurrency startups in development, compliance, and the processes of initial coin offerings.
Whether you realize it or not, there are lots of new opportunities in tech that go beyond the traditional bitcoin. If this trend is anything to go by, the next generation of finance is in the making.