The last decade has seen the growth of cryptocurrency increase in multiple folds. It has gone from being a topic that almost no one bothered about, to be a topic that has everyone talking. Cryptocurrency has had people become seasoned investors, full-time investors or just rookies playing a risk-free game with a small investment. The first cryptocurrency was Bitcoin, which emerged in 2009 after an anonymous user invented it. The idea behind cryptocurrency was to develop a digital currency that is decentralized and cannot be controlled by a bank, government or an authority. Since then, there have been hundreds of cryptocurrencies developed around the world, all operating on different formats and rules. The highs and lows that cryptocurrencies have seen in the last decade has been a rocky journey, with a lot of criticism and scepticism still surrounding the topic.
Criticism and Scepticism
The criticism that cryptocurrencies receive is pretty much justified. Economists, finance specialists and commerce experts argue that since there is no regulating authority that overlooks the trade, holding, and commission of cryptocurrencies, it could all be a very big scam. Anyone who develops a currency, could up and vanish anyday without a trace and no one could be held accountable for it. Crypto is also untraceable, and all transactions are done on blockchain. This means that its virtually very hard or even impossible to hack or trace the system. A huge number of hackers and cybercrime offenders demand payments in cryptocurrencies, primarily because its untraceable. The extremely volatile nature of the cryptocurrency value is also a reason for huge criticism. In 2014, Mt. Gox, the world’s largest crypto exchange at the time, which also handled over 70% of all BTC transactions around the world, was hacked. Over 850,000 coins were stolen, and this lead a lot of people around the world to doubt the security of Bitcoins and cryptocurrency in general.
Despite security and safety still being an issue, there are now multiple wallets around the world that ensure that your currency is debited from your exchange and into your phone hardware wallet. This has made cryptocurrency dealing very secure and less deserving of the criticism. However, the severe anonymity surrounding the existing system that cryptocurrencies operate on, is the reason why people have a hard time trusting it.
Dip and Mooning
As we mentioned earlier, cryptocurrencies are very volatile. The dip and mooning of any currency happens on the basis of a few minutes, making it extremely risky and unsafe. This is why its never a good idea to invest all of your savings into it. The smart choice is to invest a little amount, and gradually increase your wallet every month. In search of instant riches, a lot of people invest their money on useless currency based on hearsay. When their money goes down under, cryptocurrency gets a bad reputation.
Those who have been trading crypto for years, believe that crypto is volatile, but so are stocks and shares. While crypto maybe much more volatile, enthusiasts believe that the highs are also much more than any other assets, and risking money on such a commodity is not an issue.
A drop in the value of a cryptocurrency is called the dip. Dip also refers to the overall market fall of all cryptocurrencies. A dip is when people tend to buy more and more cryptocurrencies. The price downfall is usually overturned by a mooning, when the prices go back up. Those who have been trading cryptocurrencies for some time now, know exactly when to buy during the dip, and sell during the mooning. The term mooning is derived from the term “Going to the moon!”, implying that the price is on a rocket ship.
All criticism and scepticism aside, cryptocurrencies have skyrocketed in the past 10 years. At the end of 2010, ONE Bitcoin equalled $0.30, while at the end of 2019, ONE Bitcoin was equal to $7,136. Those who invested merely nothing at the start of the decade, are now currently millionaires and billionaires. And that’s subtly because of how volatile all cryptocurrencies are. As high as they go, considering there is no ceiling, there is always room for a sudden dip. However, a lot of people expect Bitcoin to touch $500,000 in the next decade. It sound pretty insane, but the last decade has proven that it isn’t impossible. For people looking for a Bitcoin exchanger in Lahore, C4Changer is the most authentic crypto exchange working in Pakistan right now.