A global virtual currency designed to work as a medium of exchange? 20 years ago, this was unheard of and deemed almost impossible, and yet as of today 3 in 4 people use cryptocurrency, and around 2.9 to
5.8 million Americans alone have invested, with hopes of making them better off financially in the future — Cavendish Professionals.

The pioneer cryptocurrency (Bitcoin)

The first cryptocurrency to be created was bitcoin in the year 2009. It was invented by Satoshi Nakamoto, a pseudonym for an anonymous software developer. The idea was to enable the transfer of currency more digital, secured, and decentralized. Satoshi also created a digital ledger for bitcoin transactions called the blockchain. Since then people have widely accepted bitcoin and its value growing consequently.

The rise of other Cryptocurrencies

In 2011, after bitcoin’s successful rise, more cryptocurrencies like Litecoin, Swiftcoin, Namecoin, etc were created. After bitcoin’s success, there was a need to create other coins that would rival bitcoin and hopefully be the next big thing. As of today, Bitcoin still has the highest market value at $23,039.72.

In 2017, people saw the spike in cryptocurrencies which brought more people to invest. However, there was still a question of its purchasing power; whether it could be used to purchase items online. Most people who held Bitcoin or cryptocurrencies held it for investment purposes and nothing else. Although, some companies announced at some point that they would be accepting bitcoin as a payment option. But is it sustainable?

In 2018, however, there was a fall in cryptocurrencies by 65% which left the world wondering if there would ever be a rise. This goes to show how volatile cryptocurrencies are. Irrespective of its rapid rise, its value is not stable and can rise or fall depending on the market. Here are some pros and cons you would want to look into while trading bitcoin.

Advantages

• Wide acceptance of cryptocurrencies around the world. As stated earlier, some companies even accept it as a payment option.
• Decentralized currency; it is not owned or managed by anybody.
• It is good for privacy and anonymity. Bitcoin accounts are not associated with personal accounts.
• It is a fast and easier way to make transactions instead of traditional methods — little or no transaction fees.

Disadvantages

• Because transactions cannot be tracked, there would be a high rate of criminal activities.
• Bitcoin-related scams or frauds are inevitable.
• It is highly volatile and poses a lot of risk; its value is not stable.

In summary,

Looking at the growth of Bitcoin and other cryptocurrencies, it’s been tremendous, to say the least. People have become rich from investing in cryptocurrencies and some people have definitely had a significant loss. However, it is one thing to note that if you’re looking to invest short term then cryptocurrency is not for you.