One of the pillars of Cryptocurrencies is the fact that it can be bought and sold without the intervention of any government or third-party overseeing the market. Alternatively, is it? Bitcoin for one closed the year of 2016 at $1,000, and by December 2017 it hit over $19,000; not forgetting that in November its price tripled under just a month’s time. However, the euphoria died just as quickly with bitcoin prices plummeting down to only $7,000 by February 2018.
Theoretically, you could use a cryptocurrency to purchase goods and services; they are called currencies, are they? Moreover, currencies should be able to buy stuff. However, for that to happen, a particular cryptocurrency needs to attract a large number of users (merchants and consumers alike), which experts say has yet to happen.
Hence cryptocurrencies largely remain financial assets – like stocks and bonds – that buyers buy in the hope that they will appreciate with time. So the mantra is, buy massively when the prices are low and sell aggressively when the prices are at their peak.
The benefit with currencies is that the central government tend to control …read more