Can Cryptocurrencies Really Make You Money?

Cryptocurrencies have become a popular investment option in recent years, but many investors still consider them to be more of a speculation than a real investment. Unlike traditional currencies, cryptocurrencies do not generate cash flow, so for you to make a profit, someone else has to pay more for the currency than you did. Cryptocurrencies are digital assets that people use to make online purchases and as investments. You exchange real currency, such as dollars, to buy coins or tokens of a certain type of cryptocurrency.

Yes, Bitcoin is technically real money. It's entirely online, so you can't get physical notes or coins. Cryptocurrency is a type of digital currency that generally only exists in electronic form. Generally, you exchange cryptocurrencies with someone online, with your phone or computer, without using an intermediary such as a bank.

Bitcoin and Ether are well-known cryptocurrencies, but there are many different cryptocurrency brands, and new ones are being created all the time. The surge in its price earlier this year made tens of thousands of cryptocurrencies millionaires, at least on paper. The argument for Bitcoin's value is similar to that of gold, a commodity that shares characteristics with cryptocurrency. But the wild swings in the values of most cryptocurrencies make them unreliable as a means of payment.

And if someone wanted to commit a crime and fly under the radar without being traced, the cryptocurrency would call their name. There simply isn't enough data or credibility to create a long-term investment plan based on cryptocurrencies. And because you usually transfer cryptocurrency directly without an intermediary like a bank, there's often no one to turn to if you run into a problem. People use cryptocurrency to make quick payments, to avoid transaction fees charged by regular banks, or because it offers a degree of anonymity. The difficulties surrounding cryptocurrency storage and exchange spaces also call into question Bitcoin's usefulness and transferability. Even on a quieter, more typical day, the value of a major cryptocurrency like Ethereum can fluctuate by 10% or more, making it too unstable to be practical.

The website Pymnts claims that Blockchain IS the future of the payments industry, referring to the computer technology on which cryptocurrencies are based. Bitcoin's technology seems antiquated compared to some of the newer cryptocurrencies that allow for greater user anonymity, faster transaction processing and more sophisticated technical features that facilitate automated processing of complex financial transactions. So can cryptocurrencies really make you money? The answer is yes and no. Yes, if you buy at the right time and sell at the right time you can make money from cryptocurrencies. But no, because there is no guarantee that you will make money from investing in cryptocurrencies due to their volatile nature.

Faisal Abdul
Faisal Abdul

Extreme internet specialist. Wannabe twitter junkie. Friendly zombie geek. Freelance twitter buff. Professional student. Passionate tv evangelist.

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