Cryptocurrency is an interesting topic and is one of the newer technologies unleashing it’s forces on society today. This article goes into what cryptocurrency is, it’s purpose and it’s potential uses in future technology and advancements, including it’s close relative, blockchain.
What is cryptocurrency?
Cryptocurrency is a form of currency that is often used in both legal and illegal transactions globally. The major cryptocurrency that most people are aware of is called Bitcoin. Bitcoin was introduced to the world in January 2009 and has grown massively from it’s original valuation. Cryptocurrency is a way to transact a currency without the use of a bank or central economy. For example, Bitcoin is decentralised, meaning it has many people on the network that helps the transactions flow. No one central area is used to process bitcoin transactions. Cryptocurrencies are currently unregulated and untraceable. Cryptocurrencies are predetermined in volume. They are also often mined using programs.
How to trade cryptocurrency
This one’s tricky unless you know where to look. There has been a lot of cryptocurrency brokers go under over the years. These have been providers of their own cryptos and also brokers like you would see for shares, giving access to a wider market. Banx was a cryptocurrency provider that went broke soon after raising capital. Basically, this was a form of thievery as there was little attempt to make a business of it. Then there is Cryptopia, a recently bankrupted firm from New Zealand that went under. They provided a vast array of cryptos and were a leading source for many traders. So how do we find a suitable broker, where we can take advantage of crypto price movements and ensure the safety of our money?
Trading crypto using the broker via the link above is as easy as selecting a crypto to trade and placing your order. You can also short crypto’s if you are so inclined.
Cryptocurrency Trading Platform
For Australians, the best way to trade bitcoin is via the above broker link. Many Australians you speak to that do not know the ins and outs of crypto, sometimes struggle to understand the point of it all, and not be able to grasp why valuations are where they are today. So for those of you wondering what the reasons are, and why the value is tough to keep down, let’s dig a little deeper:
In Australia our banks are fairly safe. We can go to the ATM and expect that our money comes out. Other countries are not so lucky. Citizens can’t always trust their bank, making cryptocurrency an excellent way to decentralise their risk of losing their funds to a dodgy bank.
We have it pretty good here in Australia, we don’t need to keep cash locked away or have a body guard ensure our safe travels. Generally we are safe to transact most of the time. Some countries, again, do not have the same luxuries and cryptocurrency can be stored in a way that prevents theft locally.
While the legal use of cryptocurrency is on the rise, illegal use of this mysterious asset has been massive. As it cannot be traced, markets like Silk Road and other illegal vendors use cryptocurrency as a staple. Payments being accepted and sent via crypto provide a way for wrong-doers to transact with peace of mind. Whilst many of us don’t see it, the illegal markets trade in the billions each year.
There’s tons of people that don’t trust the governments and corporations. And can you blame them? These bodies don’t always have our best interests in mind. When the world gets shaky, cryptocurrencies often rise in value. People buying up the decntralised currency to reduce their risk of countries going into default, wars, and many other factors. Bitcoin allows for nimble transactions globally, from one asset to another without big fees and without needing to trust any one organisation.
We have it good here in Australia. Our need for cryptocurrency at present, is very low. It’s hard to see value in something that doesn’t solve a problem we face. There’s plenty of places around the world though, where cryptocurrencies provide massive solutions to costly problems. Appreciate what we have, but understand the value to others.