Nine years ago, investing in the cryptocurrency market was an absurd idea. But today, it has become a global phenomenon, emerging as one of the top investment destinations of thousands of people across the world.
Despite questions and doubts raised on the future of the cryptocurrency market, it has reached record highs after record highs in the recent year and continued to take the financial arena by storm, proving its essence and its investment quality to naysayers. OTCapital, a leading and regulated broker, discusses the concept of this market and its importance to the financial world.
Money of the Future
A cryptocurrency is a form of digital asset that makes use of the technology called cryptography. Cryptography was first introduced in World War II as countries need a more secured form of communication. A couple of decades later, it was associated with the internet to develop a form of digital currency that can be used as a form of payment.
The cryptocurrency market utilized cryptography along with the elements and discipline of mathematics and computer science in order to secure money online, and in most cases, anonymous, making it safer and free from fraud as it used uncrackable code to execute purchase and transfers
This is the reason why many investors called it the money of the future as we quickly transform the world into a fully digital realm.
The first type of digital money introduced in the cryptocurrency market was the Bitcoin. It reached the consciousness of investors in 2009 when it was created by Satoshi Nakamoto, an alias, when he developed a project called “a peer-to-peer electronic cash system,” to which he stressed the importance of preventing double-spending.
Because he has seen the failed attempts of establishing a form of digital currency in the 90’s, mainly because of having central entity, he decided to decentralized Bitcoin, where there is no single physical location on the buying and selling of cryptocurrencies.
Bitcoin started with a market price of just below $100. Back then, investing to cryptocurrency market was an absurd idea until the demand for Bitcoin boomed and skyrocketed as people wanted to get rid of bank charges and government control.
In 2017, the hottest digital money, Bitcoin, surged in an unprecedented level, surpassing gold price at more than $1,300 by July, which provided support to the credibility of cryptocurrencies as safe-haven investments.
Today, you will also hear of other digital assets like Dash, Ripple, Litecoin, Peercoin and Ethereum, available as investment channel in OTCapital.
Cryptocurrency market have a lot to offer; that is why, investors continued mobbing the market, which drive their prices into greater heights.
As abovementioned, investors can avoid fraud and other related crimes as online money cannot be counterfeited. More importantly, digital currencies make immediate settlement possible. It is now widely used as a form of payment and transfer without involving a number of third parties. In relation with these transaction, fees are generally not involved as these exchanges are done online, where the miners are compensated by the network.