bit coin explained- what are the real threats to bit coin?

If you have been tracking the value of bit coin and other crypto currencies for any amount of time even just a couple of days, you will certainly have seen how volatile these can be. Are these large fluctuations just normal market movements or are they the reflection of more serious, fundamental threats to bit coin and crypto currencies in general? bit coin explained.

These violent moves are 2 sides of the same coin. Crypto currencies including bit coin are still very new and therefore there is a general lack of understanding for how this currencies and markets operate.

As a result of this, there is a general lack of confidence in these markets and therefore in the same way that investors and traders can get very excited about a given currency by buying it up, they can also very fast if not faster still, decide to dump the coin. All of this can result in very sharp moves up as well as down.

These factors don’t have much to do with the coin or currency per se, but rather with how new these markets are. The positive side of this is that a savvy investor with even just a basic understanding of crypto currencies can quickly get miles ahead of other and profit from this.

Unsurprisingly some early adopters and investors have made small and large fortunes from getting in early on crypto’s. So the obvious question is-why is this all happening now and why not keep using the existing forms of payment?

Over the last 10 years, bit coins popularity the oldest crypto- currency has increased significantly to the point that more and more business accepts bit coin as a valid form of payment, not just online but also off- line.

Why is this? One of the main reasons is transaction fees. Because no banks or government have control over bit coin and crypto currencies, the transaction fees are significantly reduced.

What are crypto currencies? Crypto-currencies are basically code that a group of users created together. Every transaction is collectively confirmed by a number of entities and therefore this is no specific individual or organization that controls the currency.

Younger people are becoming increasingly passionate about crypto currencies due to the lack of government or anonymity. All transactions are done via keys with no names and identities associated to them.

More experienced traders and investors understand the many and deeper benefits arising from the lack of bank or government control on the currency. Just to name a couple and perhaps the most obvious-

·       Banks cannot print money at will and therefore cannot devalue the currency through inflation or through currency devaluations.

·       Because there is no one central organization holding the currency, banks or government cannot arbitrarily seize peoples funds as happened in Argentina and more recently in Cyprus.

So other than an initial phase of volatility, are there any real threats to bit coin and crypto currency? The main threats are the usual threats associated to technology including malware attacks, hackers, lost keys and passwords etc.

Considering the heavy amounts of encryption in most currencies and in the block chain these are fairly remote threats but exist nevertheless. For them to materialize and they do occasionally materialize, especially in the earlier phases of development, they would require large amounts of electric power and technology.

In a nutshell, there are threats to bit coin and crypto currencies but they are very different and more manageable compared to the threats associated with traditional currencies. Rather than the threat coming from banks and governments, the threats to crypto- currencies are more akin to technological threats.

As crypto currencies become more and more understood, accepted and used we would expect the threats to be tackled just in the same way as most people tackle the threats of burglar break into their home by installing a secure door lock.

If you want to learn more about this opportunity, if you want to learn more- and get in on this rare opportunity, read the bit coin explained report to get the full  story and to learn more than please visit bitcoinoffer.com.