Instead, for this new currency, a primitive and unregulated financial-services industry began to develop. “It was pretty painful.” Most people who have cash to protect put it in a bank, an institution about which the more zealous bitcoiners were deeply leery. Personal Finance: Be Sure To Understand Cryptocurrency Before Investing In March this year, the price of one bitcoin climbed above the price of one ounce of gold for the first time. In the recent ransomware attack, WannaCry hackers demanded bitcoins as payment, and so far $80,000 has been paid out. In the space of a year, bitcoin has exploded from trading at $29,405 on 1 January 2021 to hitting all-time highs of over $68,990.90 in November and now trading at around $57,000 as of 1 December. Bitcoin can bring significant innovation in payment systems and the benefits of such innovation are often considered to be far beyond their potential drawbacks.Ĭryptocurrencies have gone from an obscure part of finance to centre-stage over the last year. Cash, credit cards and current banking systems widely surpass Bitcoin in terms of their use to finance crime. Bitcoin is money, and money has always been used both for legal and illegal purposes. However, no one is in a position to predict what the future will be for Bitcoin. Bitcoin has proven reliable for years since its inception and there is a lot of potential for Bitcoin to continue to grow. As a basic rule of thumb, no currency should be considered absolutely safe from failures or hard times. Although previous currency failures were typically due to hyperinflation of a kind that Bitcoin makes impossible, there is always potential for technical failures, competing currencies, political issues and so on. History is littered with currencies that failed and are no longer used, such as the German Mark during the Weimar Republic and, more recently, the Zimbabwean dollar. How Difficult Is It To Make A Bitcoin Payment?īitcoin could also conceivably adopt improvements of a competing currency so long as it doesn’t change fundamental parts of the protocol.Personal Finance: Be Sure To Understand Cryptocurrency Before Investing.
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