We’ve scoured the internet and compiled a list of the top crypto blogs.
Here they are.
Top Crypto Blogs
What is Cryptocurrency?
Cryptocurrency is a type of payment that can be used to purchase something online. There are a lot of companies out there that have issued their own cryptocurrency, which a lot of the time is called a token, which can be traded specifically for a service or goods that the company offers.
You can kind of think of it as a casino chip or an arcade token. You will need to trade real currency for cryptocurrency to access a service or goods. Cryptocurrencies work using a specific technology called blockchain.
This is a decentralized technology that is spread across a lot of computers that record and manage transactions. One of the biggest appeals to technology like this is its level of security.
Why are Cryptocurrencies Really Popular?
There are a number of reasons why cryptocurrencies have taken off right now, so let’s dig into a few of the most popular. The first is that fans of cryptocurrency see it as the future of currency, and a lot of people are racing to purchase them right now before they become even more valuable.
Another reason is that some fans of cryptocurrency like that it removes central banks from the equation, because over time banks can reduce the value of money through inflation.
A third reason for the popularity of cryptocurrency is that fans like the technology that is behind cryptocurrencies, like the blockchain, because it is decentralized that can a lot of the time be a lot more secure than traditional payment systems.
Lastly, there are people that like cryptocurrency because they are continuing to go up in value, and a lot of people have already made a lot of money from them.
Are Cryptocurrencies a Good Investment?
Cryptocurrencies do tend to go up in value, but there are a lot of investors out there that see them as speculations, as opposed to real investments.
Why? Because just like traditional currencies, cryptocurrencies don’t generate any cash flow, which means that for you to profit, someone has to pay you more for the currency than you paid for it in the first place. This is what is referred to as the ‘greater fool theory’ of investment.
Contrast this to a well-managed business, which increases its value over time by increasing profitability and cash flow.
There are some notable voices out there in the world of investing that recommend potential investors steer clear of cryptocurrency.
For people that consider cryptocurrency like Bitcoin as the future of currency, it needs to be noted that a currency requires being stable so that consumers and merchants can work out what a fair price is for goods that they’re selling.
The trouble is that Bitcoin and other cryptocurrencies out there have been anything but reliable through much of their short lifespan, and this kind of volatility in price creates a conundrum.
If a coin is going to be a lot more valuable in the future, then people are less likely to spend it right now, which makes it less viable as a currency.