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Cryptocurrencies : A sound investment or a risky gamble?

 Background:

Cryptocurrency is a well-heard name for most of us, so what is cryptocurrency?

Cryptocurrency is a digital currency designed to work as a medium of exchange, where it runs a decentralized peer-to-peer network and no single institution or person can control it. There are many Cryptocurrencies in the market, the most famous one is BITCOIN. It is created by two anonymous people called-  Satoshi Nakamoto  and Gavin Andresen

·       The same rules of cryptocurrency apply to bitcoin

·       Not one authority interferes in BTC transactions, impose transaction fees     or take people’s money away

·       It is independent of world governments, banks, and corporations.

·       Transparent - every single transaction is being stored in a massive distributed public ledger called the Blockchain.

BlockChain-

  • It’s a ledger containing every transaction ever processed.
  • Digital records of transactions are combined into "blocks".
  • A public ledger where a mistake or fraud attempt is easily spotted and corrected by anyone.
  • The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses.

·           Now the question arises that if no one controls it, then how does it functions and operate?

   With all the above features normally cryptocurrency cannot be controlled, but with an increase of digital marketing strategies, Crypto mining, and other uses of cryptocurrency, the spread and control of the crypto coins were assumed to be uneven.

     Digital Marketing Strategies :

     On June 13, 2021, Bitcoin’s value has jumped by nearly 12 percent after a fresh tweet from Tesla CEO Elon Musk.

    

June 14, 2021

The world’s most popular cryptocurrency was seen inching closer to $40,000, other Cryptocurrencies like Ether also seen a sharp increase of 7%

The Changes in the market are as follows:

With one tweet the graph of the market has changed, this is not the first time it happened. The market got depended on public opinions as there is no regulators as seen in stock markets.

With this Sudden increase of Cryptocurrency on June 14, the market kept on rising. 

 Coin burning :

Coin burn is basically done to create a supply crunch, thereby creating an artificial upward pull for the token price.

Coin burn is a process where the miners and developers remove the coins from circulation. In other words, Coin burn is a process of destroying the coin so that it is not available for further use.

El Salvador :

On September 7, El Salvador will become the first country to make Bitcoin legal tender.

     The price of the Bitcoin nosedived to $44,000 on September 7 , following the adoption of cryptocurrency as legal tender in El Salvador

Conclusion :

 I would say that Cryptocurrency is like a tender leaf that blows in any   direction where the wind blows 

Cryptocurrency is a risky gamble, but it can be turned into a sound investment.

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