Nowadays, there are promising opportunities in cryptocurrency. In terms of the price and value of crypto, the fruits, and future opportunities are still being sought after. In this blog post, we will discuss some main features of cryptocurrency and blockchain as a golden investment opportunity in the 21st century.
Blockchain in crypto is highly efficient in security and confidentiality for online transactions. It is able enough to protect confidential information and also eliminate the intermediation & intervention of any authority. Identity privacy is the key feature of the cryptocurrency that protects the user’s profile through a decentralization system. Bitcoin and cryptocurrency have double transaction risk, which means someone is able to issue two transactions parallel by granting the same coin to two different recipients. In the case of a centralized mechanism, an operational system is able to detect such suspicious activity.
Blockchain technology is much more secure. There are fewer chances for fraudsters to commit such crimes because one cannot change nor validate several ledgers at the same time. But the security of the cryptocurrency can be broken. This hack is possible only if hackers are able to control a huge amount of stake in the proof of work hash power. The computing power controlling capability is known as Hash power, it is needed for the crypto network to function continuously.
Theoretically, fraud in crypto can be done on large scale provided that fraudsters are able to control a certain percentage of the hash power. According to Bitcoin’s algorithm of binomial random walk, the unauthorized person is able to double spend if they control 51% of the computing power.
Cost of Transaction
As the concern in the current cost of the transaction, cryptocurrency and Bitcoin transaction charges are lower as compared to other normal currencies. Also, cryptocurrency can be operated 24 hours a day and 7 days a week throughout the year. All type of data pricing is available instantly whereby anyone in the world can trade without any cost.
In History, we saw that Bitcoin is a very volatile currency but has a substantial return for investors. Bohme said that people who had been holding Bitcoin since early may have raked in and profited from 1000%-10000% of the profit from what they had invested.
It is predicted that due to the demand of the market, the price of Bitcoin will be increased particularly when the supply of Bitcoin in circulation is larger than what it is now.
According to Eyal & Sirer's studies blockchain technology records every transaction in its unit. In the blockchain, a unique ID is assigned to each block & the block preceding it, which is known as the proof of work protocol. This process includes verifying a transaction and informing others about it. Users or Crypto miners have to do work in validating or proofing that they are the real identities.
During this stable period, Bitcoin will attract more investors and users alike. Kristoufek's studies have shown that the price of Bitcoin (BTC/USD) has risen, parallel with the key search on Wikipedia & Google Trends. As a result of the increasing price, the relationship between the search queries and Bitcoin price is co-related. In the near future, when more people are computer & internet-oriented, the prices of crypto-currency will be stabilized, thus people who had held on to their coins will reap the fruits of their investment.
As we discussed, due to the high volatility of the cryptocurrencies, the time length of continuation and reversal of Bitcoin was shorter as compared to other assets. Institutional investors can gain return by investing in Bitcoin contemplating with their portfolio as such in equities.