Read a great story about your favorite cryptocurrency? Post it on CoinUpVote and we might write about it on CCN.LA ! Aktiespararna, a news site of the Swedish Shareholders’ Association that offers investment advice, has posted an article presenting bitcoin as a future currency that can address the problems of security. The article focuses on the importance of security on account of crises afflicting traditional currencies. The example offered is the 2013 financial collapse in Cyprus caused by the banking system’s liquidity and solvency problems. As an investment, the article noted bitcoin carries a high risk. But it offers an interesting feature of a well-diversified portfolio. The Cyprus Experience To save the banks, the Cyprus government imposed a tax and a limit on how much money customers could withdraw from ATMs and transfer abroad. In response to this situation, many Cypriots discovered the benefits of bitcoin. The key benefit was that bitcoin is completely decentralized; there is no central unit that can control the system or affect the money supply. Today’s money system, the article noted, is based on debt. A bank customer’s balance is someone else’s debt. The idea behind bitcoin is for the individual to be free of the banking system. Bitcoin’s price is based on supply and demand, and the price has been highly volatile. But the price trend has been upward as new users drive demand. There are currently about 10 to 12 million active bitcoin wallets globally. More people are likely to use bitcoin since an estimated 2 billion worldwide do not have bank accounts. As a resul,t the article noted: “The potential of an investment case based on the widespread adaptation of crypto currency is therefore great Blockchain Offers Improvements The blockchain, the digital accounting system that supports cryptocurrency, allows transactions to be […]
