Bitcoin and other cryptocurrencies are extremely volatile and speculative; some see unlimited upside while other see no underlying value. Despite these conflicting views, several advisors and MoneyShow.com contributors see strong potential in companies that are involved in blockchain , the technology underlying these cryptocurrencies.
Unless you’ve been living in a cave for the past year you will be aware of the cryptocurrency craze that has been sweeping through financial markets around the world. Bitcoin is the best-known of these cryptocurrencies but there are many more that have been launched recently.
Bitcoin was created in 2009 by an anonymous person using the Japanese alias Satoshi Nakamoto. Essentially, it and others like it are alternative currencies that operate outside the existing financial systems, which means there are no banks or governments involved.
The value of a bitcoin is mostly generated by scarcity and speculation. It is sometimes compared to gold as a hedge against fiat currencies and, like gold, it is meant to have an implied value as a hedge against currency fluctuations. A number of exchanges have sprung up that allow traders to buy bitcoin and other cryptocurrencies.
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