Cryptocurrencies Increasing Costs for Consumers

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The growth and use of cryptocurrency follow a concept that is unparalleled in human history. Bitcoin entered the world as the first decentralized cryptocurrency in 2009 and has continued to skyrocket.

If you are confused about what Bitcoin is, think of it this way. It is simply a new form of currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto.

The transactions that are made using this currency have no banks attached and the currency can be used to book hotels, purchase games, furniture and much more as more merchants start to accept it as actual cash.

The price of bitcoin skyrocketed into the thousands in 2017 which is why you hear more about it than the other cryptocurrencies out there.

However there are currently over 900 cryptocurrencies available online, and the figure is growing considerably.

Bitcoin and other major currencies have not proliferated to the masses; however, this does not mean that this revolution is occurring in a bubble. As the prices of cryptocurrencies have spiked, the amount of interest in mining them has also exploded.

This has caused a large demand for an integral computing component, the GPU, or graphics processing unit. GPUs are the most valuable piece of computing to miners, who oftentimes purchase many GPUs to increase the rate at which they mine.

This has raised the value of high powered computing considerably in recent history. GPUs released over a year ago still hold much higher value than their initial cost upon release.

The result is a high price on the consumer and strain on businesses that rely on intensive computing. Current outlook suggests that the issue may not be resolved in the near future.

It is currently expected that NVIDIA will release a new line of updated GPUs in mid-to-late 2018; however, Bitcoin and its closest competitor, Ether, have continued to surge lately.

These rising prices will likely continue to raise demand for high powered GPUs and will continue to affect consumers.

Owning Bitcoins

According to CNN Money Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.

Bitcoin users remain anonymous and are each given a wallet ID which adds to a certain level of risk because users can buy and sell anything without it being traced back to them. It is the currency of choice for drugs and illicit activities.

The Future

The future of cryptocurrency is unknown because even though this started in 2009, it is not regulated, the money is not taxed and countries are scrambling to figure out rules to govern it.

Knowledge is power we would advise that if you want to get into trading Bitcoins or other cryptocurrencies that you know the risks and weigh those against the benefits.

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