Digital currency (digital money or electronic money or electronic currency) is a type of currency available only in digital form, not in physical (such as banknotes and coins).
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like rand, dollars or euros. They’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
Not everyone was or is along for the ride when it came or comes to Bitcoin. With some analysts referring to bitcoin as a bubble that will burst with “destructive” consequences in the long term as it suckers in large numbers of people and takes their money to give it to a small number of people.
The Nobel Prize-winning economist Joseph Stiglitz, for one, thinks bitcoin should be “outlawed”. Why? Because it creates no actual value and it should be the business of the government to create and manage currency, according to the economist.
Many major figures have poured cold water on the cryptocurrency space. Legendary investor Warren Buffett told CNBC that cryptocurrencies will come to a “bad ending.” And Similarly Jamie Dimon, CEO of J.P. Morgan, famously called bitcoin “a fraud”.
But the reality is digital currency is growing so rapidly, Just last year in March. Bitcoin achieved a symbolic milestone: After an intensive period of growth, the price of one Bitcoin surpassed the price of an ounce of gold.
And well it’s an investment trade where more businesses will flock to seize the opportunity. And while wide adoption of Bitcoin as a payment platform is happening at a relatively slow pace, trading cryptocurrencies has gotten a lot easier in recent years.
With exchanges such as Coinbase and this has definitely propelled some of the market’s growth. As when you see something increase in value tenfold within a month, you want to be a part of the action.
With the growth of digital currency it’s either time to dive in, or rush out, as the short-term movements of the market are incredibly difficult to predict.
It’s even tougher to predict a highly volatile market such as cryptocurrencies. Add to that the relative youth of all the exchanges you can trade on, and the dangers are even bigger. If the price of Bitcoin starts falling rapidly, don’t count on stop-loss measures to save you from impending doom. But there has been positivity about long-term growth.