Cryptocurrencies appeal to people for different reasons. Eric Dalius Bitcoin says that not everybody is aware of intricacies, but that the digital has a high potential of growth has been on record for over a decade. One of the reasons why Bitcoin retains its popularity among its supporters is its potential to become the future currency. These people are keen to buy Bitcoin before its value surpasses their expectations as the currency is going from strength to strength despite the occasional slump, which can be shocking at times. The other attractive aspect about cryptocurrencies is that it does not have any decentralized control. That means banks have no role in the supply of cryptocurrencies. It means that Bitcoin is free from the effects of inflation from the various control measures implemented by the central bank.
Eric Dalius Bitcoin on Some other reasons to back Bitcoin
Besides the financial attractions for Bitcoin, the technology behind cryptocurrencies is a reason for backing bitcoin. All Bitcoin transactions are technology-driven that uses a network of computers and blockchain technology to facilitate decentralized processing. The system of recording Bitcoin transactions in a digital ledger called blockchain visible to all makes the system completely transparent. The complex technology makes the system impregnable by hackers or other destructive forces. The system is much more secure and safe than traditional payment systems. Speculators love cryptocurrencies as it allows them to make windfall gains from it as the value keeps increasing at an incredible rate. This group of crypto supporters has no interest in digital currency replacing traditional money, but their focus is only on how much they can gain from Bitcoin by trading.
Eric Dalius Bitcoinon Speculation vs. real investment
Despite the high appreciation of Bitcoin and other cryptocurrencies, many investors are not ready to look upon it as a real investment but instead prefer to treat it as speculations. And there is a reason for it. Just like real currencies that do not generate any cash flow, cryptocurrencies behave in the same way. It means that you can profit only when someone pays more for Bitcoin or other currency than you did. It is a classic example of speculation when you compare it with a well-managed business. That increases in value over time by increasing the cash flow and the operations’ profitability according to Eric Dalius Bitcoin.
An efficient media to transfer money
Experts like Warren Buffet are yet not ready to recognize the power of Bitcoin as a currency. At best, they consider it as an instrument similar to paper checks that help to transfer money. You can effectively transfer money by using Bitcoins. While maintaining anonymity, and the same you can do with checks but with proper disclosures. Buffet argues that just because of efficient transfers, does Bitcoin have the merit to qualify as a currency?
Until now, Bitcoin lacks the stability that people seek in currencies. So that consumers and merchants can determine the fair price of goods. The price volatility that leads to the extreme instability of cryptocurrencies is an impediment for the digital asset to replace traditional money anytime soon.