Do you remember when you were a little kid, sitting at your grandfather’s desk, watching him polish his collectible coins? Do you remember the days he would come home and hand you another coin to add to your collection – the collection that you most likely only cared about because it was your grandfather supplying the necessary means to keep up with it?
Those days are long gone.
Coins like that don’t much matter anymore. And, if they do, they’re not going to be worth as much money as everyone claimed them to be – unless the tables turn again in the next few decades.
So, that begs the question, “What’s today’s version of your grandfather’s coins?”
Cryptocurrency may be the answer.
A cryptocurrency is a digital form of money created and managed by a series of encrypted algorithms – and it cannot be made physical.
You can’t touch it. You can’t polish it. You can’t cash it in for another form of currency.
It’s not similar to the US dollar. It’s not similar to the European euro. And it’s not similar to any other type of money you may have handy in your wallet.
It’s simply computerized money.
Is there a similarity between your grandfather’s coins and today’s cryptocurrency?
We can’t necessarily say that there’s a similarity, but there are vague similarities between the two.
On a day to day basis, your grandfather’s coins would increase or decrease in value, depending on the way of the market. Well, the same goes for cryptocurrencies – they’re inherent value relies on how much money people are investing in the chain.
That goes to show that today a cryptocurrency could be worth $100, but tomorrow that same value could potentially drop to $1, or it could rise to $100,000; it’s all a betting game, to say the least.
Does that make cryptocurrency a bad way of the future?
Not necessarily – but it doesn’t make it good, either.
You see, your grandfather’s coins value would not change in the blink of an eye. Typically, investors would go up and down in pricing, but not in a drastic fashion. On the other hand, crypto markets CAN and WILL change within hours, minutes, even seconds.
The most logical answer to that question revolves around the fact that it’s in the beginning stages of life. Also, not many players have signed up for the course of action, meaning if even half a dozen players drop their sense of value, the entire crypto market could drop along with it – that’s dramatic, but you understand the main point here.
One other fact that you should keep in mind is that grandpa’s coins were popular for a great deal of time. The crypto market has been popular for a few years now, but no one is sure if it will keep rising in popularity, or if will drop unexpectedly. The stability of the circumstance is a little shaky so far.
Keep all of this in mind when planning out your cryptocurrency investments – it’s better to be safe than sorry.