Are cryptocurrencies a problem or a financial solution?
Since bitcoin was created, other cryptocurrency projects have been launched, giving way to more than 10,000 different cryptocurrencies for different functions. I want to mention that somehow this current situation in cryptocurrencies reminds me of the "Era of Banking Freedom in the United States" in the 80's kids, in which each governmental banking institution develops its currency or its monetary cone. At that time it is exactly true that money created in private institutions is not a very effective medium of exchange let's say and this may be related to financial crises and other good or bad things for the national currency.
The main cryptocurrencies in the market can be divided into several parts and these can be large or small. I should also mention that there are the fiat cryptocurrencies, being the cryptocurrency "bitcoin" one of the most known by all of us, although also the cryptocurrency ethereum has surpassed it in much more trading volume in the current market.
The following cryptocurrencies, based on complex cryptographic techniques, are privately created, have absolutely no assets backing them as is the case with bitcoin and are denominated in their own autonomy and are highly decentralized, at least most of them. Thus, their high volatility in the market stands out.
We must also emphasize that the high risks that this can cause as an investment is of utmost importance and this has been discussed many times in some important bitcoin conferences and the main problem is the environment because many people trade and others mine this cryptocurrency and this can be devastating for the environment guys. It is of utmost importance for the main reason: "BTC mining comprises more than 0.40% of all the world's energy and will continue to increase". The energy consumption caused by BTC mining is equal to the energy spent by Chile, for example.
Currently in today's society we have many problems to solve because in my personal opinion I think that having a diversified portfolio of cryptocurrencies is a good idea because simply nowadays we should know that these cryptocurrencies can make us a lot of money and not only that guys but we can run into the luck of making a x100,000 as was the case of shiba inu and without going that far we can easily run into the luck of making a x10,000 which is something wonderful for our finances.
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That's all for today guys, I hope you enjoyed the reading, see you in the next post, a pleasure to be with you.
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