![]() ![]() Many cryptocurrency devotees presume that national money is “fiat money” and that cryptocurrencies are something else. Therefore, Bitcoin has value only where individuals and firms choose to accept it in exchange for other things (such as dollars or Indian Rupees). It is a fiat currency, meaning it is not linked to anything with intrinsic value and is not legal tender in just about every country, with the recent exception of El Salvador. Transactions can be cleared with no trusted third party standing between payor and payee, and are designed to ensure that the payor has the funds and that each transaction is completed.ĪLSO READ: Bitcoin To Dogecoin: What Is Cryptocurrency And How Does It Work?īitcoin is the most widely known cryptocurrency, and the one with the largest total value. Cryptocurrencies run on a decentralized network, which allows them to exist outside the control of central authorities. Investment Risks compared to Traditional AssetsĪ cryptocurrency is a form of digital money.Ultimately, this knowledge will help cryptocurrency investors properly assess their potential gains and losses. Indeed, before allocating any money to cryptocurrencies, investors must be mindful of their usefulness for conducting transactions, the weaknesses of crypto infrastructure, and the sources of changes in the value of these assets. Risk managers all over the world are studying risks posed by cryptocurrencies, and the aspects that need to be kept in mind while considering investment opportunities. What are cryptocurrencies and how do transactions work for these instruments? What gives them value, and how do they compare to traditional financial investments? ![]() While there might be many benefits and compelling stories associated with crypto-trading, investors must also be attentive to the risks associated with such digital money. Ether, too, plummeted nearly 57% over one week in May, its lowest valuation since January. Bitcoin, for instance, went from a record high in April to an almost four-month low in May, with its value dropping by nearly 50%. However, the risk of fluctuating valuation is concerning because investors are potentially exposed to huge losses. Ease of doing transactions (e.g., ‘one-click transactions’ available via local apps), access to international trade and confidentiality are additional aspects that are attracting young investors to trade in cryptocurrencies. The recent surges in the value of popular cryptocurrencies such as Bitcoin, Ether and Dogecoin have added to the spike in interest for digital currencies as a viable investment opportunity. Undeterred by concerns about its long-term viability as an investment instrument or the current regulatory landscape, India now has over 15 million cryptocurrency investors, according to the Internet and Mobile Association of India (IAMAI).ĪLSO READ: Ether vs Bitcoin: Analysing The Crypto Market For An Indian Investor Indian investors, especially Gen Z, have been quick to catch on to cryptocurrency, triggered by incidents including last year’s Gamestop-Reddit Buzz, Elon Musk’s endorsements and celebrity promotions for Indian apps. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |