Bitcoin happens not to be the only cryptocurrency that exists today, but it is the most popular. The price of a single Bitcoin went from just under $ 1,000 at the start of 2017 to almost $ 20,000 at the end of the same year.
While it is currently less than $ 1,000. Bitcoin’s main competitor, Ethereum, has also experienced even more dramatic price fluctuations, but without reaching such high price levels.
The most common form of investment in cryptocurrencies is to buy them and wait for prices to rise in order to resell them and realize capital gains. Whatever be the trading risk lies there, if you intend to invest this way, do so only if you certainly think prices will go up.
The Benefits of Cryptocurrencies
The success of cryptocurrencies in fact comes down to certain fundamental qualities that point to a good future for this type of investment. Some even think that the blockchain technique on which this currency is based will be as revolutionary as the Internet.
Protection of users’ privacy: cryptocurrency gives its users the ability to carry out financial transactions without being identified. It is a medium of exchange that you can use to make online transactions without the slightest traceability.
As easy to use as credit cards: Cryptocurrencies can be used to conduct financial transactions in the same way as you do with credit and debit cards.
The absence of chargebacks: This is another characteristic of cryptocurrencies that attracts a lot of merchants. When you purchase with a debit or credit card, you can make a chargeback if, for any reason, you are not satisfied with the transaction. But with cryptocurrency, every purchase is final. You can still dispute the transaction made with the merchant, but it is never an automatic process.
Currently, Bitcoin seems to be more of an investment phenomenon than a medium of exchange. Although the number of traders and businesses accepting the currency is increasing, it is still only a tiny fraction of all existing businesses.