SIXTEEN FACTS TO KNOW ABOUT BITCOIN BEFORE THE END OF 2018

The entry of cryptocurrency into the market has made them one of the most influential technologies in life today. These coins and their blockchain technology underlie us to change the way we invest now, from paying for groceries, to transferring money with peer-to-peer loans. This is the advantage of digital tokens which can make them the most sought-after and popular investment.

But there are some things that you have to understand about tokens before you start investing in them, the following will be explained starting from the most important things.

1. Very Fluctuating Digital Currency

The first thing you might realize is that the price of cryptocurrency is very volatile. This means that the price can change from day to day, even the highest increase in the price of each hour will be very possible. The reason why these coins are so easy to change is because of how they are traded, because they are bought and sold on various exchanges.

Since the beginning of the year, the market capitalization for all of these coins has increased by more than 3000%. However, Bitcoin, which is the most popular cryptocurrency in the world, experienced 4 severe price corrections of 20% of its value over the past 6 months.

1. Cryptocurrency Less Get Help

Unlike the dollars you keep in your wallet or bank account - or any currency that is traded around the world, cryptocurrencies themselves are not supported or regulated by a central bank or government. These coins are also intangible, which means they do not have fundamental factors that influence their judgment. Even though you might be able to see income from certain stocks because they are traded to estimate their value, or track a country's GDP growth to rate currencies like dollars, cryptocurrency has no physical ties. This makes the process of evaluating the value of this coin difficult, even almost impossible.

1. There are more than 1,300 types of cryptocurrency

If you follow the concept of cryptocurrency, then you must have read and heard a lot about Bitcoin. Bitcoin is the first cryptocurrency traded in the market. And that is a great beginning. At present, coins make up 54% of the market capitalization of $ 500bn of all cryptocurrency currencies.

However, Bitcoin is just one of the many virtual coins available for purchase. There are more than 1,300 other tokens on the market, all of which can be bought and sold by customers. As many as 24 of the coins have a market capitalization of more than $ 1 billion dollars.

1. Value of Blockchain is Different

Among the hustle and bustle surrounding the token trade, the technology underlying the development of these coins is truly extraordinary. Blockchain technology is a network where all cryptocurrency (such as Bitcoin) is established. This network is a digital book and decentralized from other computers. This is what makes it possible to record payments and transactions privately safely. This is also the main reason why companies and developers are very interested in this technology.

1. Miners Play Important Roles

Every transaction on the blockchain must be verified first so that the network can operate properly. And to ensure that every transaction is recorded and handled by a team known as cryptocurrency miners. Miners will be rewarded with virtual tokens to complete each transaction and record the history of transactions made.

Mining and verifying transactions on the blockchain can use large amounts of electricity and other resources. To meet this demand in the market, manufacturers such as NVIDIA have released Advanced Micro Devices which can help the mining process process transactions faster.

1. Decentralization Is the Core of Cryptocurrency

The reason why Blockchain is an interesting idea is the fact that Blockchain is decentralized. Which means that there is no point of failure in information storage and there is no data center where hackers can steal and master the user's personal information.

Compared to relying on individual servers or many (a group) of servers that will later spread the information throughout the world easily and allow later to fall into the wrong hands. Therefore, this is what makes blockchain safe, and many large companies have shown interest until now.

1. Blockchain also has other benefits

Apart from decentralization, there are many other benefits regarding the blockchain. Miners work 24 hours a day to verify transactions, which means that they can be completed much faster than the traditional banking system. Another benefit is that without intermediaries from banks or other institutions, transaction costs can be minimized. Also, the blockchain offers increased control and transparency for its users.

1. Blockchain is also not perfect

Even though there are so many positive and optimistic things about the blockchain, but this platform is certainly still not perfect. For example, most of the underlying technology is still being worked on, which is certainly time consuming in terms of development or when suddenly down. These problems can certainly slow down the speed of transactions and verification, both of which are important services for medium and large companies.

1. Blockchain Technology Is Being Tested By A Number Of Famous Business Brands

Blockchain still has enough time before launching the broader program. A number of large businesses are in the process of testing the use of blockchain to complete their work. Some of them have made small-scale pilot projects.

One example, there are 200 organizations that collaborate with Etherem Alliance to test their cooperation with Ethereum Blockchain. Several major brands in the world have collaborated, including large companies such as Microsoft & MaterCard.

1. Barrier To Entry Is Relatively Low

Keep in mind that there is little or no financial services company to use the blockchain, the amount of time, money, and expertise needed to launch a new cryptocurrency or decentralized application is getting cheaper every day. This low cost drives the 2017 ICO. In July last year, there were only 1,000 tokens on the market. And in December, the total has risen to more than 1,364. It is estimated that there are around 50 to 100 new cryptocurrency released every month, all using cheap blockchain technology.

1. Retail Investors Must Be Careful

The lack of rules about coins is one of the main reasons that makes people hesitant to enter the market, but that changes when the law tries to keep pace with the cryptocurrency investment. This means that many people take part directly in the crypto market to be able to understand how crypto markets work.

1. Not Everyone Believes With Cryptocurrency

Maybe you can guess, not everyone is enthusiastic about the presence of cryptocurrency. Warren Buffed revealed in an interview in 2014 with CNBC that Bitcoin is nothing more than a "mirage" that will soon collapse in value. Besides that, Buffet stated that the idea of ​​Bitcoin has intrinsic value is a joke.

Warren Buffet is not the only person who voices his concern for Bitcoin. Jamie Dimon, who is the CEO of JPMorgan Chase, describes Bitcoin as a "Fraud" and even worse. He went on to say that investing in Bitcoin will not end for both retail and institutional investors.

1. Some Countries Violate Cryptocurrency

Cryptocurrency may have made its own interest in the investment market, but they are still not accepted by governments around the world. There are some countries that are still wary of these coins, because they are irregular and decentralized. This has also encouraged several countries to ban the trading and use of bitcoin.

Some countries have banned cryptocurrency, such as Bolivia, Bangladesh, Nepal, Morocco, Ecuador and Kyrgyzstan. Cryptocurrency trading, making payments in virtual currencies, or buying goods and services in digital currencies, is illegal in the countries above. And there is a possibility that this list can increase later. For example, like Russia, which has considered banning payments made in crypto currencies for some time.

1. Investors Have Obstacles With New Technology

Another thing to note is that retail investors can be so optimistic about the application of cryptocurrency, especially when newcomers enter the market. Today's cryptocurrency has a market capitalization of 2000% since 2017, driven by the belief that the blockchain will be the way of the future for big business.

1. Many people still don't know what cryptocurrency is

Most people don't have a basic understanding of what crypto currencies are, how they work, or what their potential is. In a survey conducted in 2017 by LendEDU, it was found that 80% of American students did not know Bitcoin. Another opinion found that only 30% of people knew about Ethereum, which is the second largest digital currency based on market capitalization ...

1. The Government Wants To Apply Taxes For Cryptocurrency

In the end, because the cryptocurrency itself has not been regulated, this does not mean that investors can easily take advantage. The IRS in America demands that people pay additional taxes on the personal benefits they get, and it seems that it will begin to be implemented by the government.

In November 2017, the IRS won a lawsuit against Coinbase, one of the largest cryptocurrency currency exchanges in the world. This made Coinbase have to submit a contact information database for more than 14,300 users who invested more than $ 20,000 between 2013 and 215. Less than 7% of users reported their profits to the IRS, indicating that people deliberately hid their profits from the government..