KNOXVILLE, Tenn. (WVLT) – There has been a lot of talk about cryptocurrency lately, but what exactly is it?
Cryptocurrency is a form of digital currency and there are 10,000 different types currently traded publicly. Bitcoin is the most recognizable. We asked John Vandergriff from Blue Ridge Wealth Planners why is he so popular?
“People want to have alternatives to investing largely outside of stocks, bonds and cash and so that’s one of the reasons, it’s just to try to find other ways to make money. ‘money,’ Vandergriff said. “I think the other thing that has instilled popularity is the Elon Musks of the world and the people who validate that are pushing the younger generations to say ‘well, this is a legitimate option that we have to put in place and obviously when more money is chasing something that you see an increase in value.
The currency is backed by Blockchain technology. Something Vandergriff said is almost too certain.
“It’s one of those things that is almost too safe, because you have five chances to try your password, and then something can be locked forever, and so you can have amounts of Bitcoin that won’t. never seen again because Blockchain technology is almost too secure in some ways, ”Vandergriff said.
Vandergriff said it is important to understand cryptocurrency well before investing.
“The crazy thing about all cryptocurrencies, but Bitcoin in particular, is that it trades around the clock. So what we’re used to is an exchange that opens at nine o’clock. and closes at four, then you can sleep and know nothing is changing, ”Vandergriff said. “You can fall asleep for a price with Bitcoin and wake up and it’s totally different because the other side of the world is trading it.”
“What I’ve told a lot of people is that at this point in the game you want to invest money in Bitcoin that you never care about never seeing again,” Vandergriff said. “And if you look at your money and say, ‘I have none of that,’ then maybe you just wait a bit and let this thing mature and understand itself.”
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