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Welcome to Bitcoin and Cryptocurrency Audits

Providing Reliable Information for Bitcoin and Cryptocurrency
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CONTRIBUTION OF BITCOIN TO THE GLOBAL ECONOMY

Since its inception, bitcoin has gained market value and has become of global significance. As the world’s leading Cryptocurrency it has gained quite a large user base as the most valuable Cryptocurrency in the market. There have been a lot of controversies on the use of bitcoin for money laundering and this has added to its potential problems. The question on everyone’s mind is, how long will its success continue and what is its effect on the financial economy?

What is the effect of bitcoin in the banking sector?

Banks have declared that there is and would be a most devastating effect of banking as this would disrupt the control that the bank has over the economy. Usually, central banks run the economy and are charged with distribution and all forms of financial transactions. Imagine a scenario where there is less and less need for a bank due to a secure digital asset which can be used to purchase anything through online transactions. This is where we are headed with the abilities of bitcoin. This would greatly affect the banking system. Various organizations and service providers are already accepting bitcoin as a means of payment for services while some corporations are also giving staffs the option to be paid salaries in bitcoin.

The political impact of bitcoin

There is a buildup of controversy surrounding bitcoin as it favors individuals more than the government. There is no central control unit, no state can exert ownership, and this is due to the cryptography which gives it immunity over any form of external influence.

We are not sure what the effect of bitcoin would be to the society but it does provide a safe secure way to transact and it supports the growing technology of a cashless society.

Future effect of bitcoin

This is yet uncertain but predictions state that more companies, countries, individuals would key into the idea of Blockchain technology, which is the most secure way to transact and in imbibing this new method everyone would choose a most successful Cryptocurrency with stability and is generally accepted worldwide. We may be looking at a new global currency!

Can Bitcoin Be Considered As A Good Investment?

In case of investments, no one can really say for sure whether it will be a good investment or not. This is mostly because the future is unpredictable and if you are willing to invest, you are most likely to see the trend in their profit and other related data which has been collected from past investments. Also, like any other investments, determining how well your investment will be is based on your whole perception of it.

It mainly depends on if you visualize a future where all the currency and assets are circulated independently without the supervision of any central authority. If your hopes are similar to it, then in your perspective, investing in Bitcoin is going to be a very good investment. However, if you are one of those people who are content with the traditional way of how money is circulated in an economy consisting a central authority, then you would consider it as a bad idea to invest in Bitcoin.

The process of determining the outcome of an investment is a big gamble. However, there are certain ways to ensure you do not incur any loss on your investment. If you are thinking about making an investment in Bitcoin, just consider the fact about its increase against the USD. The price of Bitcoin surpassed $1000 and is currently more than $1500. On the other hand, if you look back on the history of prices which Bitcoin had before, you can see that the prices somewhat moved within the range of $150 to $200. Also, if we travel back to the time when it was first revealed, you can see for yourself that it had no value compared against the US dollar. From the small insight here, you can evaluate that people who had invested from the starting are being able to enjoy a huge amount of percentage as a return on their investments.

Moreover, the fact that a limited supply and a growing demand increases the price for a good, service or currency is unarguably true. Keeping this concept at the back of the head, the founders of Bitcoin has decided to keep a static supply of only 21,000,000 tokens creates a perception for people about its value which might remain same or has a possibility of increasing its value due to people’s increasing demand for the particular tokens. It is sometimes considered more valuable than regular currency because only the stated amount of tokens will be available to potential investors, whereas ordinary currencies can be printed in unlimited number which causes its value to fall in the international exchange rate. Also, there are more reasons to invest in this valuable. This is mainly because Bitcoin is facing increasing demand, the effect it has on networks, how secure it is while being immutable. Lastly, it will always be known as the first ever digital currency in the rapidly growing world of cryptocurrencies.

Buying into Bitcoins

With the modern demand for swift and big earnings, probably the most debatable new investment opportunities has been cryptocurrency especially Bitcoin. It’s received its controversy partly due to its unpredictability, partly through the volatility of Bitcoin trades and partly because of its untraceable transactions which started to attract the ones involved in criminal trades.

As things started to change and after an especially volatile incident where one of the primary exchanges of Bitcoin, MtGox, filed for personal bankruptcy, the currency appeared to have matured right into a steadier pattern which allowed investors in order to take a calculated look at whether they should risk their investments in a currency which physically doesn’t exist.

Volatility

Even though Bitcoins have become increasingly popular, the marketplace continues to be quite small, and therefore good and bad news flash can have a uneven influence on the price. The long-term viewpoint for Bitcoins is usually theoretically good, and therefore the upside on cost is more powerful than the prospect of a decay over the future. Most brokers advise that you take into account Bitcoin as a moderate to long-term investment due to its volatility. Think about it in conditions of real estate. Nobody buys and sells homes many times a day time and there may be significant drops in house prices but then again the long-term trend for prices of real estate is generally up. It could also be the same for Bitcoins. Whilst there exists a significant regular trade in this currency, numerous Bitcoins are kept as investments as experts think that it’s likely that the cost of Bitcoins will rise long-term because they’re becoming more broadly accepted.

Influencers.

As with almost all financial elements, prices are mostly influenced by a demand and supply. Bitcoins are no different but what actually triggeredthesebig fluctuations in cost has been the uncommon upsurge in the news headlines that influenced the demand and supply:

• The personal bankruptcy of MtGox, one of the primary Bitcoin exchanges.

• The shutting down of Silk Road which had allegedly approved Bitcoins for illegal trades.

• The complete disclosure by the government that, despite the unfavorable uses of Bitcoins, they believed that the currency could actually have a future.

• The news and media in addition has stirred up lots of controversey by reporting on the milestones in the currency’s rise and fall, trumpeting the rise to over $1000 and its own subsequent plunge on poor publicity.

Usually the advice on buying Bitcoins is to sit watching the market for two weeks to get a concept of the way the currency trades, its instability and its trends. It’s hard to find rumorswhich haven’t immediately affected its worth, so many recommend investing a little amount and watching for opportunities, similar to a setting to take profit amounts with shares and Forex, the same could be done with Bitcoins; it’s just a little longer process and just less automated.

Exactly like with any other currency, the value may fall, and events just like the downfall of MtGox and the shutting down of Silk Street, negatively affected Bitcoins; not only because demand was comparatively less but also because Bitcoins had been falsely linked with these companies by urban myth. The marketplace appears to be becoming even more regular, but not always regulated, as even more exchanges start to happen online. A few of the exchanges will proceed in the same manner as MtGox but others will start to merge and be more powerful and more reliable. However many think that an official regulation will be employed to Bitcoins possibly in the course of future when its volatility will probably reduce.