What is Cryptocurrency? | WWLP
CHICOPEE, Mass. (WWLP) — Cryptocurrencies like Bitcoin continue to make headlines in the world of business, as bulls drive the market upward.
The Cryptocurrency market is risky, but its brought tremendous returns for investors. After being worth 8 cents in July of 2010, bitcoin now considered to be digital gold is worth well over 50 thousand dollars, for just one.
Bitcoin is not an actual coin, it’s digital currency. It’s volatile so before you invest, do your research, and only invest an amount you’re comfortable with.
“Don’t buy it if you’re worried about an investment that goes up and down. This is pure speculation and a new industry it’s like the internet in 1994,” Mark Teed, the Senior Vice President of Investments, Raymond James & Associates said.
Teed told 22News cryptos are moving beyond just speculation, and are now posing real-use cases. The silver to Bitcoin, Ethereum, has become the leader in the DeFi space.
“They are building units off of Ethereum. There is something called NFT’S, so if you want to buy a digital piece of art or a basketball image, you have to buy it through Ethereum,” Teed said.
El Salvador became the first country to make bitcoin legal tender and they’re using energy from volcanoes to mine it. Talk of government regulations has caused some fear in the market but that hasn’t scared off big institutional investors.
“It’s funny how every corporation in America they’re worried about cybercrime, but they’re also worried about not being Bitcoin in the right way, so the regulations will have to be smarter. I think we have to coexist with, and it’s amazing in 10 years how it’s changed our world,” Teed said.
Teed recommends not putting more than 3 percent of your investment portfolio into cryptocurrencies. You may be rewarded for sticking it out if you can stomach the market corrections.