There is much talk about the crypto-currency and how it has become a legitimized digital currency. If we look at the basic meaning or significance of the digital currency, it has been formed as a decentralized currency that can be used to pay for different digital transactions that usually incur minimal or no fees. The crypto currency is backed by which is a decentralized form whereby records of the transactions are maintained. The invention of the code is attributed to Satoshi Nakamoto whose identity remains debatable and it is for sure that he launched the code in the beta version in 2008 and the code went online from 2009.
Popularity of can be attributed to its decentralized nature. This crypto currency is not controlled by any government and there are no fees charged by any financial institution; helps to record and create evidence of the transactions done with . Due to the anonymous nature of this currency it is a preferred mode for illegal and questionable trafficking activities. However, today it has been given legitimate status in many markets or regions for which its valuation has been on the rise, also because of the limited supply of in the economy.
The valuation of this crypto currency as on March 2017 was around $1268 which even exceeded the valuation of a single ounce of gold. There are about 16.5 million Bitcoins that remain in circulation as found on July 2017. This leads to the concept of cash, which is another variant of the crypto currency. Backed with as well, this is a slightly more optimized value of though it is valued more or less equal to as of August 2017.
This year also sees rise in price which is reaching record levels. For investors it has become a point of interest and many wonder how worthwhile is it as an investable asset and whether its speculative value will last the tests of time. As at August 2017 the prices of trade were found to be at $4000 on an average. The crypto currency is not without its volatile nature where it is often found to dip below $4000 which usually results from weekly price movements. However, it has remained around the mark of $4000 for a period of three weeks with many experts forecasting the price to go to levels like $5000. The jump that the price saw on August 18th at $4500 showcased a rise by 40 per cent in the price of the currency in a single month alone. This was mainly due to a positive response of the crypto currency being divided into two forms including the offshoot Cash.
The real impact of the split is yet to be seen which will happen in November when the fundamental changes will show effects. Till now the transactions with happen when a block is created and added to the database of that underpins the movement of the currency. This is a laborious process for which transactions often slow down. Many experts propose that some of the transaction data be moved out of the block and onto a parallel track. That will help more transactions to happen quickly. The changes will come by in November and it will showcase the real impact of the change that has happened and whether it will have a positive or a negative impact on the valuation of . However, in general 2017 has showcased the considerable growth in the value of . The value of the crypto currency has increased quadruple amount over the last six months and even surpassed the gold value. This translates to millionaires being created for those who had invested in this crypto currency five years back.
Many wonder whether it is too late now for investing in this currency. Some who are involved in digital currencies and related markets think that there is still time to invest in . Many are optimistic that there might be full of this currency in the future and for mainstream business or commercial transactions. As a result of that and because of the limited supply of the the prices are set to go up. With regard to the question as to whether the rise in the valuation would follow an arithmetic or geometric progression, we need to first understand what is the significance or difference between these two mathematical concepts. Sequences refer to a collection of events or numbers that are called terms which move as per an underlying principle. Hence arithmetic or geometric sequences refer to different patterns of movements of a sequence.
In a sequence where consecutive terms have a constant difference between them, it is called an arithmetic sequence. When consecutive terms have a constant ratio that they maintain with respect to each other the sequence is known to follow a geometric pattern. Hence, in an arithmetic sequence terms are obtained by a constant that is added or subtracted to the preceding term. In geometric progress the subsequent term comes from when a certain constant is multiplied or divided to the preceding term.
If we are to try and identify the rate of increase of as per arithmetic or geometric progression, it would be tough. The difficulty in and recording transactions by block chain cryptology leads to its scarcity and thus rises in demand. This could be attributed to a geometric progressive rate, but the rate can hardly be defined to be a constant ratio. The demands are driven by speculation that leads to high valuation being attached to the crypto currency, but experts warn about its volatile nature and hence, no constant can be attributed to its growth that could be defined to be geometric in its rise or fall. Hence investors are asked to caution before they consider investing in this crypto currency and holding it as a long term asset.
Published at Sat, 23 Feb 2019 06:02:11 +0000