Cryptocurrencies Take A Dive

You may have hear that cryptocurrencies like BitCoin and Ethereum value has taken a beating as of late. The hugely inflated bubble has burst making a few investors richer and many with hardly a penny.

What are cryptocurrencies?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation. – Investopedia

All currencies have value because a group of people decide that it has value. During the Great Depression many people resorted to bartering because the currency was thought to have little value. One might trade a chicken for some flour and beans. At the time this seemed better than getting some worthless paper for your goods.

What happened?

On November 8th 2021 Bitcoin the most popular currency reach a high of $67,617. The urge to sale at such a incredible price was to great for the big speculators, and the market crashed. By June 7th of 2022 it lost more than half of its value. If someone got in the market around July 1st of 2021 them may have broken even, but if you got in in late September you got burned. You would have lost al of your initial investment.

Investment 101: Buy Low, Sale High!

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