What is Bitcoins and why is it becoming so popular as an alternative investment? This article will explore this question from two different perspectives. The first comes from the professional investors who know the value of the virtual currency. The second comes from the layman who only has a passing interest in the story. In both cases, we will try to answer the question: what is Bitcoins?
Bitcoins and blockchain: A brief description of what is a Bitcoins is needed to illustrate why it is making such a splash as an investor’s favorite investment vehicle. Bitcoins are an internet-based currency that was created by an unknown person or group. There is no physical paper money involved – just digital “paper” that is accepted globally and can be traded using specialized software. The value of Bitcoins has increased dramatically over time as more people recognize its all-time highs and lows.
Why is a Bitcoins so attractive to institutional and retail investors? Let us start with the basics – high returns. As anyone who has bought or sold penny stocks will tell you, penny stocks can be downright scary. They go up and down every few days and can even move quickly against your position. One bad trade can wipe out your entire investment.
But when you follow what is going on with the distributed ledger system called the “blockchain,” you see that there is no evidence that this volatility is driven solely by greed or bad decisions. It actually comes from smart decisions. The best example of this is what is known as a “numerically recognized asset.” This is a financial instrument whose values are calculated based on mathematical algorithms. One of the most well-known derivatives on the market is the bitcoin stock, or portfolio equity.
The value of the bitcoin and other cryptosporms, like ether, is being calculated in a new way. As more information is mined from the decentralized ledger system, investors will be able to add information to it. If the system becomes unbalanced, like it has in the past, the value of these assets will plummet. For now, however, the decentralized ledger system called the “blockchain” is working perfectly.
Now consider how a company with a product that can be purchased virtually everywhere in the world could become popular as a Nasdaq member. Since companies must file their financial statements with the Nasdaq, they cannot choose a location where they want to be listed. Instead, they must list their shares on the worldwide market. A company that develops an application on the bitcoin protocol could be listed on the Nasdaq, the NYSE, the OTCBB or another global exchange.
Now consider how easy it would be for an institutional investor to buy small amounts of bitcoin and then trade it using their existing brokerage account, just as they would buy shares of a public company. When the investors find that they have enough confidence in the technology, they may decide to hold on to their initial shares forever. Eventually, they may even decide to sell their positions. They will have gained something both short term and long term, something that no Nasdaq member ever could do.
It is not hard to see how the future of the global trading lies in the exciting world of the “iotcx” or the” Riot Blockchain”. With increased liquidity, low costs and a nearly unlimited potential for profit, it is difficult to see why anyone who is considering investing should not be thinking about it. If you are not already familiar with the technology behind the riotchain, you should become familiar before your investment funds run out. Even if you currently do not work in the technology sector, you will likely look back years from now and wish you had known about it sooner.
Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.
