Updated: Nov 8
By now you’ve surely heard about cryptocurrency, or at least its first and most popular example, Bitcoin. You may have even purchased some yourself out of curiosity or at the urging of a friend. But do you really understand how it works and what you’re buying? Like any item, its scarcity contributes to its perceived value. One could argue that Bitcoin derives part of its value by being backed by a growing portion of the global population. And cryptocurrency is not without inherent challenges. For one, losing access to your digital wallet means the money is effectively gone forever – remember, no central authority exists! Another challenge is the volatility of cryptocurrency. This attracts investors, but severely limits its practicality as a day-to-day currency for us regular folks. So by all means add it to your investment portfolio or purchase some for fun, but not until you’ve done your homework and educated yourself on what cryptocurrency really is.