Cryptocurrency is a form of payment that can be traded online for goods and services. Many companies have created their own currencies, usually called tokens, and these can be exchanged specifically for the good or service that the company provides. Think of them as casino chips or arcade tokens. You’ll need to exchange real currency for the cryptocurrency to access the good or service.
Cryptocurrencies work using a technology called Blockchain. Blockchain is a decentralized technology spread across many computers that manage and records transactions. Part of the appeal of this technology is its security.
How Many Cryptocurrencies Are There And What Are They Worth?
There are more than 6,700 different cryptocurrencies that are publicly traded, according to a market research website (coinmarketcap.com). Crypto continues to grow higher as well as raising money through initial coin offerings (ICO). All the cryptocurrencies are now worth more than $1 trillion, according to this website https://www.coindesk.com/cryptocurrency-market-value-record-1-trillion
The price of bitcoin and other cryptos are very volatile and that is why people are gravitating towards this. Here is a price for bitcoin and more https://www.coindesk.com/price/bitcoin
Why Are Cryptocurrencies So Popular?
There are many reasons why there are a many and a constantly growing number of supporters of crypto.
- supporters like the fact that cryptocurrency is not reliant on central banks or any government. They like the idea that the government or banks are not managing the money supply since over time the value of money decreases due to inflation.
- The general supporters see that cryptocurrencies such as bitcoin as the currency of the future and are racing to buy them now, presumably before they come valuable
- Other supporters like the technology behind cryptocurrencies, such as blockchain because it’s a decentralized processing and recording system and can be more secure than traditional payment systems
- Some supporters do not care about the long term future of the currencies but rather interested in the money and trading side of things
Should You Buy A Cryptocurrency?
Cryptocurrency is an incredibly speculative and volatile buy. Stock trading of established companies is generally less risky than investing in cryptocurrencies such as Bitcoin.