Living In a Digital World - Investment Opportunities
As technology is growing and ever-changing, our lives are becoming digitized. From electric self driving cars to zoom school, we can assume that future innovations will surpass our wildest dreams. Who would have imagined that the concept of cryptocurrency would be here to stay? Cryptocurrencies are digital tokens-- a form of digital money allowing people to pay each other directly, eliminating the need for a bank or third party middleman. In 2008, a group named “Satoshi Nakamoto” created Bitcoin, the first cryptocurrency launched as a digital copy of a cash transaction. With no need for trust between parties, nor for a bank or processing agency, the system used a new technology called blockchain to record the transactions (blocks) together in a chain. Protected by secure mathematical codes, it is almost impossible to hack or disable.
Why is this a big deal? Why is the price of Bitcoin soaring? Bitcoins can be used to pay for products anonymously. Bitcoins have no fees, making international payments cheap, simple and unregulated. Investors are buying bitcoins in hopes of selling them at higher future prices as crypto becomes more mainstream. Bitcoins are created by people competing to “mine,” using computers to solve sophisticated algorithms. They are stored in a “digital wallet” allowing users to pay for goods or just hold their money. Bitcoin is filled with potential and power-- the future value and growth could be huge. Some say like the internet in 1994! Those who bought Amazon and Apple in the late 1990’s became very rich if they held onto their positions. There are many different ways to invest-- from crypto exchanges, to exchange-traded funds (ETF), to stocks that invest in mining companies. We are definitely living in a digital world and investing in cryptocurrency could be the next big win!