Investing in crypto-currency: is it worth or is it a scam? Some useful tips
The best cryptocurrencies are worth investing in. Here are helpful tips on safe and non-fraudulent bit-coin alternatives. The CryptoInvest Investment Review can you out here.
Is it worth investing in bitcoins and crypto-currencies?
One of the biggest doubts you often have when you’re considering whether to invest in cryptocurrencies or not is whether or not these investments are just a big scam.
Premise: the crypto-currencies are not all the same. Indeed, they are very different from each other. Therefore the previous question cannot be answered with a single answer valid for all crypto-currencies. We will, therefore, try to answer by considering one by one the main crypto on which we should focus our attention.
Bit-coin: The crypto-currency par excellence
Bitcoin, of course, is not a scam also because the crook is simply missing. Bitcoin, in fact, is not owned by anyone, and its inventor when he created this currency accumulated tokens that were worth zero or absolutely nothing. Fortunately for him at some point, about 1 and a half years after he launched it, the tokens started to have value, and then over time, this value grew.
We must not forget that the Bit-coin offer is strictly deterministic and inelastic to the market. That is, it does not increase if demand increases. Therefore as long as the demand increases, the price will increase accordingly, and inevitably, and this is the only engine that drives currently its price upwards.
There is something different about the possible evolution of the price because the fact that it is not a scam does not mean that the price cannot collapse. Those in crypto-currencies are and remain high-risk investments, precisely because there is no guarantee, of any kind, that demand remains high in fact, just as the price rises if demand rises, the price will fall if demand declined.
In other words, as far as we know, there is no one who is currently manipulating the price of bitcoins: it is only and exclusively the market that decides it. That is the simple negotiations between supply and demand. Therefore it cannot be called a scam. However, this is not the case for all other crypto-currencies.
Ethereum: Crypto-currency for Smart Contracts
The second currency by market capitalization is Ethereum. The functioning of Ethereum is similar to that of Bitcoin. The differences are purely technical, not financial, so for Ethereum you can do more or less the same reasoning as with Bitcoin.
In particular, Ethereum is not just a crypto-currency, but an entire ecosystem that allows, among other things, the management of the so-called “smart contacts,” i.e., IT contracts that self-explain when specific pre-established conditions are reached, and the issue of new tokens.
Bitcoin Cash: The transactional currency alternative to bit-coin
The third crypto-currency to date for market capitalization is Bit-coin Cash. It is a “fork” or a spin-off of Bit-coin, but it has a difference: while behind Bit-coin, there is no one, in particular, i.e. there is the entire community of users, behind Bit-coin Cash in fact that a company or rather, an agreement between some private individuals who developed it.