What is cryptocurrency? If you have already heard about the currencies such as bitcoin taking the online world by storm, it is hardly surprising. Over the past decade, interest in digital currency, which is mined using a digital ledger, has grown more and more. British people are investing in bitcoin in particular, which is perhaps the best-known digital currency of its kind, but as with stocks and shares, there are risks involved.
Bitcoin is making waves because many see it as a flexible, decentralised alternative to physical money. The British pound continues to take hits as a result of Brexit and other political issues, yet bitcoin holds firm. Is it any wonder that so many people are investing in the currency, despite there still being some uncertainty?
Many people believe that bitcoin is changing the financial landscape very quickly indeed. Let’s explore why.
Bitcoin is free from regulation
A lack of regulation of bitcoin and other cryptocurrencies in the UK means that people are keen to use that to their advantage. Unlike traditional currency, bitcoin is free from midpoint management and has no links to any banks. It is purely generated and traded online, meaning that there are no ties, and the digital paper trail is minimal. For that reason, many people adopt bitcoin for the privacy it provides.
However, a lack of regulation has also led to some uncertainty. Bitcoin is taxable in the UK to an extent, though the treatment it will receive in the future is unclear. Some sources suggest that regulations are set to change in the UK, however, there is a general feeling of not knowing what to do with the currency. Until there is greater clarity concerning bitcoin’s legal status, many businesses feel reluctant to adopt it. However, that may not be the case for much longer.
Bitcoin is being adopted across many sectors and some businesses openly accept the currency despite it not having legal tender status in British law. Businesses across Teddington and into the city are progressive and quick to adapt to technological advancements. Therefore, it will hardly be surprising if we start to see more positivity towards bitcoin in the years to come.
Bitcoin is easy to access
The perfect trading strategy can be difficult to come by; however, it is extremely simple for everyday traders to get started with bitcoin. All it takes is to set up a digital wallet and to find an exchange. Providing you have a funding source and have researched the markets carefully, you will be able to start making money in a matter of days. But be warned, it is essential to assess the risk involved, especially as bitcoin values are extremely likely to spike and then fall dramatically.
You can take greater control over your investing by using bots and programs. Artificial intelligence is hugely popular in the cryptocurrency scene, meaning that many traders program bots to invest in difficult markets and scenarios when they are unable to do so. One of the best arguments for using automated programs and bots is that it removes the human element of emotion. An investor bot will look at the data available and will make decisions through logic. Sites such as top10cryptobots.com have guides on how to find the most popular bots and programs online. All are widely available for you to download and to use via exchanges.
What will happen to the British pound?
One of the biggest concerns in the world of finance is that bitcoin could eventually usurp the pound. While cryptocurrency is moving ahead at a blistering pace, it is too early to consider how legal tender will be affected in the long run. However, suggestions arise which suggest Brexit could give bitcoin a significant boost. This may be due to people with less confidence in the pound moving over to a safer, digital alternative.
Bitcoin is further changing the financial landscape because it is impervious to global problems. Businesses and traders across Teddington and London can already see that Brexit has sent shockwaves through trading in the pound. Bitcoin, meanwhile, peaks and drops on its own, unaffected by what is happening in the world. That is likely to be very attractive to many people.
In the here and now, Bitcoin represents a fantastic alternative to normal currency. It carries risks of course but many traders will tell you that the potential highs are worth holding out for. Will it change the way we trade in years to come? We will just have to wait and see.