Cryptocurrency has emerged in the last 10 years and continues to gain popularity among various sectors of the population. There are hundreds of different cryptocurrencies on the market with the more well-known ones being Bitcoin, Litecoin, Ethereum, Dash and Ripple to name a few.
To the uninitiated, cryptocurrency is difficult to understand. There is no physical currency. Everything is traded electronically, and the trades are done through what is known as the blockchain. These are virtual currencies made up of nothing more than bytes and nodes.
It's hard to get your head around the concepts although the key thing is to remember that the prices of cryptocurrencies rise and fall just like other currencies and commodities.
The price of Bitcoin has fluctuated wildly over the past 2 years and is currently experiencing a resurgence. Not everyone is enamoured with cryptocurrency with even President Trump weighing in on the subject claiming that it wasn't real money. Be that as it may, cryptocurrency continues to be popular and trading in various cryptocurrencies continues to rise.
The popularity of cryptocurrency cannot be traced to one particular group or concept. However, there are several movements that extensively utilise and endorse cryptocurrency.
The first of these groups could be defined as been technologically aware and willing to experiment with technology. Many of these people would be colloquially classified as geeks. They understand the complexities of blockchain, crypto mining and the establishment of cryptocurrencies. Many have been able to access university course instruction on blockchain and cryptocurrency (yes there are university courses relating to these subjects) and are excited by the integrity and possibilities that the block chain technology offers. Blockchain technology is still developing and this group of early adopters is looking to position themselves to take advantage of the developments as they occur.
The second large group could be broadly classified as Libertarian. They see cryptocurrency as a means of operating outside the current FIAT currency structures of most governments. Cryptocurrency has been embraced by these people as a means of asserting their independence and autonomy.
The third group could be classified as an investor/speculator or trader group. As previously stated, the price of Bitcoin and all cryptocurrencies is subject to wide fluctuations. The lure of being able to profit from those price fluctuations is large and many people enter the cryptocurrency market for this reason alone.
The cryptocurrency market will continue to evolve and could be reasonably expected to grow in popularity as more people are attracted to one of these three broad groupings. How that plays out in particular cryptocurrency pricing is difficult to predict, however, he blockchain and cryptocurrency genie appears to have well and truly be let out of the bottle. The market appears to have now been established and will continue to operate for years to come.
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