What is the Point of Cryptocurrency Anyway?
Cryptocurrency and blockchain are related concepts that are also very different. To understand the purpose of cryptocurrency and how it differs from blockchain technology we need to define both of them clearly.
Blockchains are a type of digital ledger, an umbrella term for the cryptographic and digital ledger technology needed to establish projects like Bitcoin, while cryptocurrencies are essentially digital money that run on the blockchain.
Before we can fully understand cryptocurrency, we need to define yet a few more terms.
Another term now commonly being thrown around is “fiat currency.” This is just money that the world is accustomed to, like the Dollar, Yen, Euro, etc. True blockchains are in the public domain. They are distributed, immutable, peer to peer, and decentralized, meaning large corporations don’t have complete control over them.
Cryptocurrency has emerged to become an alternative to the fiat currencies of today. It has an unending list of potential uses once it is more widely adopted, and many in the crypto field think we have just scratched the surface when determining the overall worth of the technology.
What is the Point of Cryptocurrency Anyway?
The purpose of cryptocurrency is to secure the exchange of goods in the digital sphere.
You might ask, “Hasn’t the Internet come a long way in terms of security?”
Yes, it has. However, hacking of financial resources and personal information remains commonplace. This seems like an unavoidable consequence of the centralized databases held by a few powerful organizations.
Computer experts point to the speed of innovation and the impossibility for lone organizations to keep pace as an opening that crypto is ripe to exploit. Cryptocurrencies provide a unique method for securing digital information. Their public distribution and validation make them virtually unhackable. Open source development also means that their innovation occurs on the global stage.
Using Cryptocurrencies
Cryptocurrencies are good investments because they are cryptographically secured, but there are also some other really enticing applications. They can be used for more than just exchanging goods. Smart contracts and decentralized apps are among the most exciting applications of crypto.
While Bitcoin is still seen as the most secure, Ethereum often has the most attractive projects. Its share of the market combined with new project development is unparalleled. Ethereum and Bitcoin have done more to encourage the use of cryptocurrencies than any other projects so far.
Regular Monitoring of Long-Term Investments
The cryptocurrency market is historically volatile, although Bitcoin demonstrated several months of attractive stability. At the time, some financial experts even called it more stable than gold. Until the recent bear market, many believed that Bitcoin’s status as a safe and secure store of value had arrived.
If recent market events have taught us anything, it is to maintain regular monitoring of investments in the cryptocurrency market. This isn’t to say that you should withdraw investments out of the cryptocurrency market, but rather, it is about where to invest.
Pay particular attention to market capitalization. It is important to understand that a long-term investment is less impacted by price ratios to fiat currencies than to other cryptocurrencies. This means that the health of a financial investment will be greater when it gains ground on a major cryptocurrency like Bitcoin, rather than its value against the U.S. Dollar. The reason is that most experts foresee the long-term application of cryptocurrencies.
CoinMarketCap is a good place to turn to find daily updates about market caps and the relative prices of virtually every significant cryptocurrency. CoinGecko is another valuable resource for daily crypto information. This site also includes some useful statistics and a brief overview of each cryptocurrency.
Where to Buy Cryptocurrencies
Cryptocurrencies can be bought through any of the numerous branches of Gulf South ATM company Pelicoin. Buying cryptocurrency in this way provides the most secure form of storing crypto investments. For the more savvy investors, Pelicoin offers paper wallets as a form of cryptocurrency cold storage. It places the keys in the hands of only its owner. There is no computer interaction, virtually eliminating the chance of blockchain chain theft.
Use a Pelicoin ATM and purchase crypto the smart way, today.