London, UK, Binary News Network, Cryptocurrencies like Bitcoin, Litecoin, and Dogecoin are all the rage these days. Everyone’s talking about them; everyone has an opinion on them, and everyone seems to be investing in them. Cryptocurrencies like Bitcoin, Litecoin, and Dogecoin are all the rage these days. Everyone’s talking about them; everyone has an opinion on them, and everyone seems to be investing in them. But why? Why is everyone so obsessed with cryptocurrencies nowadays? What makes people invest in something that doesn’t seem to serve any real purpose or have any intrinsic value?
Victoria-Coins Broker Mark Schmitt said that there’s one very simple answer: they’re profitable. Coins like Bitcoin and Litecoin can be mined (see here for a guide on how to mine Dogecoins), which means that you don’t have to buy them; you can create or “mine” them yourself. There are millions of cryptocurrencies out there, and most of them can be mined just like the big boys. So how profitable are cryptocurrencies? Is it worth your time and effort to start mining coins like Litecoins or Dogecoins rather than investing in them?
The truth is that there are no one-size-fits-all answers. There are just too many factors involved, and it’d be irresponsible to give a user the idea that cryptocurrencies can work for everyone or even most people. However, Mr Schmitt said that cryptocurrencies aren’t going away anytime soon. They’re becoming more and more popular with each passing day, and the value of currencies like Bitcoin is only going up. It’s true that cryptocurrencies are volatile, which means their value can fluctuate greatly even in a single day. But over the long term, the trend is clearly up.
Risks of cryptocurrencies include security issues. Cryptocurrencies are subject to some of the same types of attacks as other online services, so they require constant monitoring and regular updates. Apart from this, there are the usual risks of theft, unpredictable value fluctuations, etc. The governmental risk is a whole other beast. Governments all over the world have been going back and forth on whether or not cryptocurrencies will be regulated or banned, but no one has come up with a consistent policy yet.
Coins like Bitcoin and Dogecoin can be fun to get into, but there’s a lot of scammers around. It is important to make sure you are dealing with a legitimate person before sending them any money. Crypto-currencies are maturing every day, but the fact still remains that nothing is foolproof. Mr Schmitt says that the world of cryptocurrency remains to be a wild, wild west. There are still plenty of people out there who are willing to take your money and run away. 2021 has been a year of scams and hacks for the cryptocurrency community. Since January of this year, millions of dollars have been lost to these types of attacks.
It also pays to be vigilant when you are mining cryptocurrencies. There are plenty of malware applications out there that claim to help use your processor “mine” coins like Bitcoin or Litecoin, but actually just mine for their developer. Some of these programs can do real damage to your computer before they’re detected, so it’s important to not just download random applications.
The recent Phuket case
Just recently, a 50-year-old man, Mama Jamuang, from Bangkok was accused of being involved in a crypto scam. According to allegations, he had fleed with more than 500 million Bhat, Mr Jamuang was the man behind Onecoin which was a digital currency. He claimed to be a crypto guru and promised people to help them earn money from digital currency. His too good to be true claims had many people invest in the Onecoin system. But later, he fled with their money. According to reports, initially, he paid dividends to investors but later he disappeared.
Mr Schmitt predicts that in the future, we will see more and more regulation of cryptocurrencies. But it is unlikely for some countries to actually ban crypto-currencies even though there are fears about their possible use in illegal activities like money laundering or tax evasion. The main challenge, Mr Schmitt said, is that governments don’t know where to start when they want to regulate cryptocurrencies.
Investing in a cryptocurrency may be a good idea, but it’s important to remember that nothing is guaranteed. There’s no telling when a particular currency can plummet or skyrocket in value, and there are plenty of risks involved with mining coins as well. One thing is for sure, though: even though the world of crypto is a wild west, it’s here to stay. If you’re interested in getting into the world of cryptocurrencies, learn as much as you can and be careful with your money. Most importantly, make sure that you do not fall for scams such as Onecoin because once you lose money, there’s hardly a way for you to get it back.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.