We all know it’s a great idea to invest your money even during retirement, but how do you know which investments are the best ones and which ones are right for you? You may have heard about Cryptocurrency, the latest craze in investing, but you likely don’t know much about it. It’s still very new and it’s so technologically advanced that it can seem complicated to understand. Here’s more info to help you get a grasp on this new investment trend and determine if it’s right for you.
Enroll or get a quote at https://www.medisupps.com/ for a 2019 supplement plan. Rather than using your web browser for researching Medicare supplement plans, take a deeper dive into digital currency. You have probably heard the name Bitcoin or Etherium by now. The concept of it isn’t all that different from how most of your fiat money is exchanged today when you use your debit or credit card, or buy anything online. It’s transferred digitally from one person to another over the internet, typically via ACH transfer. No physical money is exchanging hands, it’s essentially just reducing digits from your bank account and increasing someone else’s by the same amount. In that way, digital currency is nothing new at all.
What makes cryptocurrency different is that each digital transaction is also encrypted using a technology called the blockchain. The blockchain makes every transaction completely anonymous and decentralized, meaning no central bank is dictating how the transaction happens, when it happens, or if it can happen. Instead, each transaction is scrutinized by the community of blockchain users to determine if it is legitimate. Once it’s confirmed, the transaction goes through and a permanent record of the transaction is created that can never be erased. If the transaction was a mistake and needs to be reversed, the original transaction’s permanent record isn’t erased, rather a new transaction record is created showing that the transaction needed to be reversed. This is the blockchain.
This intensely secure method keeps the entire system accountable to itself for every transaction that occurs. It’s thought to be the best way to transact value for the future because no single entity can ever control the currency like each country’s fiat currency has a kind of central bank. Since the currency is not tied to any physical representation of value, like gold and paper money is for fiat currency, the value of the cryptocurrency is based entirely on the people who hold the currency’s faith in it.