for investors who focus on volatility, it may be time to thoroughly understand the encryption currency.
in the first, the value of a currency actually not much money, but now the price of around $300. The trend of the encryption of other currencies have depreciated, but on the whole encryption currency from the focus on investment continues to improve.
COINS news resources network CoinDesk has been focused on tracking the development trend of digital currency in the world and change. The site, by the end of this year, there will be 800 COINS trading accounts (i.e., the currency wallet), 10 m company will accept the use of the currency.
but the currency has security vulnerabilities. In February this year, the world’s largest currency trading platform Mt. Bigger announced that was hacked, transactions on the platform of 850000 COINS are stolen, lost more than $500 million, the currency market all over the world in an instant drop, the highest losses as high as 35%, the Mt. Bigger also apply to the court for bankruptcy protection. But supporters say, Mt. Bigger was attacked by hackers and fails to account for the virtual currency, including COINS, strain ability is poor. , a finance professor at the university of durham, duke Campbell r. Harvey said, Mt. The bigger the failure of the exposed to the lack of security mechanism for the company itself. Blamed for the failure of the “the Mt. The bigger the currency, it’s just like that caused the collapse of lehman brothers because the dollar.”
in a report earlier this year, jpmorgan chase group (& amp; Co.) in foreign exchange and international interest rate strategy at John Normand said said the currency than a traditional currency. “COINS are certainly has the possibility of high yield, but also accompanied by higher volatility and poor asset cashability.” He suggested that institutional investors in the interview had better not be mixed in. But he also added that as individuals, should make their own decisions, whether the earnings outlook is worth you to risk lower cashability and high volatility.
here are potential investors should know the information about encryption currency.
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is different from the traditional dollars or other currency, the currency is not the central government printing and distribution. They are made by individuals and businesses through the high performance computer. Maker of COINS can keep some COINS as a reward for services, and the remaining will be sold on the unregulated trading platform.
when you buy a currency and get two sets of strings, namely the public key and a private secret key. For encryption and the purpose of convenience, these characters are generally made up of letters and Numbers. Public key is open to everyone, but in the digital wallets to match the private secret key is usually equipped with password protection mechanism. Every currency trading activities to deal the initiator by private key signature confirmation, to confirm the transaction is initiated by the address all of the actual, and prevent the trading of tampered with.
all COINS fair is immediately released on the general ledger, in case someone will to track the whole process of currency trading. Some Internet cloud on the general ledger is as a collaborative document instead of centralized management of the account. Users under this mechanism for shopping, transfer and speculation.
the masses do not rely on Banks and other intermediaries demand for p2p payment form is on the rise, make the payment more cheap and quick.
at the same time, for investors, encryption money more and more popular in the user. It is said that the currency has become the filipinos working in the United States send money home to one of the most popular way. Analysts pointed out that the number of COINS is limited, and the demand is growing, it will drive up the price of the currency.
on the other hand, if an encrypted currency instead of another, or if the p2p financial finally confirmed that was just a flash in the pan, so the currency will only be a floating nonsensical alphanumeric code on the Internet.
some people think that because of the large investors bought a powerful hardware, speed and scope of mining COINS are expanding, the opportunity of personal investment encryption currency has apparently over. “For those who need continuous investment and careful attention to cost, profit investment COINS are no longer only a kind of interest, is more of a deal.” London a currency early buyers Hansel Dunlop said.
as COINS technology, other currencies are developed, and brought improvements to the platform, Mr Dunlop explains. The difference is very subtle.
the Wright coin, for instance — tell from the value of it is the second largest encryption currency, it provides a more complicated problem, and therefore harder to dig or manufactured. Again, for example, Ripple, it can’t be digging, but to be gained by encrypting currency trading.
company is the key
investors don’t need to dig through the currency or rack in the trade to make money. Some observers suggest, those who use or provide encryption currency services and other peer-to-peer payment platform company, is a good investment.
this includes processing payment transaction Colored Coins, or open source currency exchange platform Ripple Labs. Ripple is an open source, distributed payment protocol, it makes between merchants and customers and developers to pay almost free, instant and will not refuse to pay, and support any currency. These companies are still at the early stage of development, so in general have not publicly traded.
financiers and writer James Rickards said that this technology makes trading than traditional faster, cheaper, more transparent, has a great potential for development. The use of these new technologies company allows consumers to buy the product in a few seconds, or send payment, and spend less money than regular currency.
Jeffrey Robinson is the author of a book about the COINS, he think that investors should keep eyes on this kind of company rather than encryption currency itself. Robinson said: “this is not a commodity business, it is a kind of technology trading.”
Ripple Labs, chief executive of Chris Larsen said encryption currency is just the beginning of this broad technology revolution. As you can imagine, Ripple protocol can be used for any exchange value, from the money to the air miles – just need to cost a fraction of it.
although the prospect of the currency exciting, we still have to remember that it’s risky. Harvey at duke university, said the encryption currency volatility, cashability is poor. The currency value of the relative constraints mean, when did not see the negative impact of the price, it is difficult to sell the currency. The currency market value of about $6 billion recently.
“currency speculation is never be used as a tool.” He added, “the currency’s main purpose is through the minimum lower transaction costs and a higher level of security to achieve the effective exchange of assets.”