Cryptocurrencies: should we invest our money in 2021? – EconomyMorning

What is cryptocurrency? Cryptocurrency, also called “digital currency”, is a decentralized virtual currency that does not pass through any central bank. It is awarded to “miners” as remuneration to reward the computing power they have mobilized to validate blockchain transactions carried out by “mining” operations.

The invention of cryptocurrency revolutionized the field of finance and created a kind of shadow economy.

What are the promising cryptocurrencies?

Bitcoin (BTC)

Created in January 2009 by an anonymous person under the pseudonym Satoshi Nakamoto, Bitcoin is the first cryptocurrency in the world and the one with the largest market capitalization.

The price of Bitcoin has increased significantly since last October. In mid-December, he broke the $ 20,000 mark, his all-time record broken in December 2017.

On January 2, 2021, Bitcoin’s price hit $ 30,000, then over $ 40,000 a week later, before climbing to $ 58,000 on February 21, 2021.

Ether (ETH)

Ether is the cryptocurrency allocated by the Ethereum blockchain to its miners. It is considered the most important cryptocurrency after Bitcoin in terms of market capitalization.

Created in July 2015, Ether did not exceed the $ 1,000 mark until early 2018, but its price fell rapidly and did not regain its strength until the end of 2020. Along with Bitcoin, l‘Ether experiences historic explosion, reaching $ 1,855 in February 2021. Admittedly, he remains very far from Bitcoin, but we must take into consideration that he is younger than him.

Why and how to use cryptocurrency?

To acquire cryptocurrency, it is recommended to go through exchange platforms, such as Coinbase and Binance. These platforms allow users to convert traditional currency into cryptocurrency securely and transparently (for more information see: Coin24).

Digital currency makes it possible to carry out transactions, transfers, and even make purchases online on some platforms.

Its advantages are multiple, such as:

– Its transaction costs are lower than those relating to traditional currency.

– It can’t be counterfeit.

– The transparency of commercial operations is ensured.

– The protection of user data is guaranteed.

Following the Covid-19 pandemic, many people and businesses have come to view cryptocurrencies as safe-haven assets as their prices have risen during the financial crisis, and cryptocurrencies are expected to continue to gain attention. banks and regulators around the world in order to integrate them into current financial systems.