Have you seen the continuous news about bitcoin in the last few hours? Yes, Cryptocurrency is on every blog and new currently because the cryptocurrency giant Bitcoin passed $11,000 after a very long month of being stable. Is it true that the United States second check move is what is causing the cryptocurrency rise?
Why Cryptocurrency is the Future?
Unlike in the past where money was backed by gold or other precious metals, currently money is just being printed by group of people called the government whenever it is needed. For our fiat, we run on proof of believe and circulation meaning that we are made to believe that our currency is valuable and not that the gold or any other metal backing it makes it valuable and the power of each currency is determined by how many printed copy is available to the general public. The more money that is printed means that the buying power of the money keeps reducing. For years now, the continuous printing of fiat money has made it lose its value making things people buy in the past become expensive beyond the normal inflation rate and this is where cryptocurrency started playing the game.
What is cryptocurrency
A decentralized, digital currency built on the blockchain (a decentralized ledger where data are stored in form of blocks and harsh). Currently bitcoin being the king in the cryptocurrency world does not have an unlimited amount of mining, and the highest that bitcoin can be printed is 21 million Bitcoin. Bitcoin is owned by nobody, running on a blockchain with different nodes from different regions for transparency, cryptocurrency seems to be the only coin that most people can trust and associate themselves with in time where everyone is scared of a recession and that the value of most currencies would drop.
Is Bitcoin a Hedge or just a currency?
To me, a currency is whatever that is generally acceptable as a means of exchange and since bitcoin is becoming acceptable by a few companies and vendors, it can be regarded as a currency but currently I do not think people regard it as a currency rather they regard it as an investment for safety against hyperinflation. Since the maximum number of the Bitcoin is known and relatively small, it is being treated like gold and as such is being a hedge for the fiat currency. If I am asked why Bitcoin is on the rise currently, I will say it is where a few rich guys are coming to keep their money for safety against Fiat with the bell of recession ringing everywhere.