DISCLAIMER: This article is NOT meant to encourage you, the reader, to invest in cryptocurrency at all! In fact the purpose of this article is to encourage you to learn more about these digital currencies as it is evident that cryptocurrency will have a defined role to play in the world of Finance.
There has been a lot of interest in cryptocurrency within the last decade.
Even though it is now the year 2020, we are still in the very infant stages of digital currencies and one can almost see all sorts of new crypto currencies popping up and then some disappearing.
As of August 19, 2018, Wikipedia reported over 1600 crypto currencies! and some websites claim that in the present moment (2020 May) this number exceeds 3600!
This is indeed mind boggling, just imagine a scenario where you go to a certain country on a vacation. Then you find that there are 3600 different ways to pay for a hotel room or a meal.
Thankfully, we are not quite at such a dilemma. Why? because not all crypto currencies are accepted as mediums of exchange yet.
Coinbase.com is a popular cryptocurrency exchange where you can invest in crypto, get a digital wallet and even keep an eye from the sidelines till you obtain more information.
Although there are thousands of cryptocurrencies out there, like actual (non-crypto) currencies, not all of them have established value and some of them have effectively “died”
Pi – is a relatively new crypto currency where users can earn simply by downloading an app on your mobile phone.
https://minepi.com/white-paper
There is no established US$ value for the Pi cryptocurrency at the moment but this really depends on the software teams and technology behind this.
The above link very clearly identifies some pros and cons of the popular Bit Coin and highlights some of the areas where the Pi currency stands out.
For example a few characteristics of BTC (Bitcoin),
– There is a limit to the number of Bitcoin’s that can be mined
– Bitcoin mining requires enormous computing power at the moment (think FARMS of servers)
– You can buy a fraction of it or a whole Bitcoin at an exchange (keep in mind the price is volatile!)
In a nutshell, the newer cryptocurrencies such as Pi are referring to Bitcoin as “1st generation” cryptocurrencies.
So clearly the world of crypto is evolving and this coming decade we will see how the 2nd generation of currencies fare against the 1st generation currencies.
By all means, read, learn and buy into crypto currencies after ensuring you have a solid savings or nest-egg. Diversify your investments and invest in anything that you perceive to hold value, be it land, semi-precious gemstones, cash, collectors cars, designer watches, rare paintings..you get the picture!
Whatever you do, make sure you are not putting your life savings and major plans at risk when you plan to invest in cryptocurrency.
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