blockchain insurance

With a current market capitalization of around $130 billion, and an appreciation rate that is over 700% this year alone, bitcoin may be causing some concerns in the financial world in the coming future. Let’s say for example, a homeowner is looking to make a return on an equity loan. that homeowner decides to put their money into cryptocurrency, but more specifically, Bitcoin.


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Looking at several articles showing the massive upside potential for the coin, the homeowner thinks that this is a no-brainer. With the coin up by such a massive amount this year, it would make sense to put this excess money into it for investment sake. If things continue to go this way for bitcoin it could represent a $1,000,000 gain per bitcoin over the next ten years, something that is not out of the question. One of the biggest issues with bitcoin and cryptocurrency as a whole is the fact that it is so incredibly volatile. This seems to be the largest issue in the market today.


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If a store owner wants to use the currency within the business, it is unlikely that it would occur because pricing items would be a nightmare. One day the price could be $5 and the next it could be $2. If our above homeowner wanted to invest all their money, but then ended up losing it due to the volatility, there is no government body like the FDIC to insure it, therefore it would just be lost with no way to reclaim it.

This represents another issue with the currency. The fact that there are no safeguards to losing money, makes it extremely difficult to mainstream the system as a way to store and invest wealth. Hopefully, the currency can overcome these challenges and continue to grow at a high rate.

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