If you have been keeping up with stock market news, you would know that the stock market today is heavily focused on cryptocurrency, specifically Bitcoin or BTC. The poster child of cryptocurrencies is, of course, Bitcoin or BTC.
Cryptocurrency is a digital currency or non-fiat currency that can be used to purchase goods and services. A number of private & public companies such as Tesla (TSLA) are now accepting crypto as payment. Companies have issued their own currencies, often called tokens or “Alt Coins”. These altcoins or tokens can be used as currency in exchange for products or services that the company provides. All cryptocurrencies work by utilizing a technology called Blockchain. Blockchain Technology is a decentralized ledger that spans across a network of computers to manage and record transactions. A big part of the attraction to blockchain technology is its transparency and security.
Supporters see cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) as the future of money. Cryptocurrency eliminates the need for the central banks to manage the money supply, which is helpful since over time banks usually reduce the value of money because of inflation. Blockchain technology allows for a decentralized processing and recording system that has the ability to be more secure than traditional payment systems. Furthermore, we’ve seen private and public companies like Tesla (TSLA), and MicroStrategy (MSTR) make big investments into cryptocurrencies like Bitcoin (BTC). With all that being said, the global market can also be a big contributor to its growth. Some popular cryptocurrencies and crypto stocks are LiteCoin (LTC), Riot Blockchain (RIOT), Marathon Patent Group (MARA), Bitcoin Cash (BCH), Cardano (ADA), and XRP (XRP).
Bitcoin ETF Unlikely to be Approved Until 2022 or Later According to CNBC
What does the rejection of the pure-play bitcoin ETF mean for bitcoin bulls?