The blockchain has deservedly taken the finance world by storm over the last two or three years. It’s been hailed as a revolution and been widely adopted by the corporate sector as a means to make do with a new avenue of transactions and dealings.
However, with all the hype that has surrounded it and the furore it has caused over the last few years, there are still many who voice concerns about cryptocurrencies and have problems with many of the features of the blockchain. Recently, Taiwan indicted seven individuals who committed fraud while working as Bitcoin Investment Managers. However, at the same time, supporters of the blockchain were rejoicing over the announcement that Saudi Arabia and the UAE would be collaborating on a brand new cryptocurrency.
The contrast between the two reports points out one key factor that has defined the blockchain ever since it became relevant to the public: volatility.
However, it was not the security issues that have kept most people away from investing in or making use of cryptocurrencies.
The Volatility of Cryptocurrency
The world of the blockchain was rife with fraud and security issues until the associated investors and authorities began taking a stand against the blockchain’s ties to criminal organizations. Ever since then it’s become a safer place to work with, with some fraudulent activity still taking place on it. However, it was not the security issues that have kept most people away from investing in or making use of cryptocurrencies. Instead, the volatility of cryptocurrency is what has kept many away from it.
Back in 2017, the Chinese government placed a ban on cryptocurrency. The result was an immediate and massive drop in the worth of BitCoin, the biggest cryptocurrency and one that influences most of its smaller siblings. The massive shakedown relayed what many had feared; the unpredictable nature of the blockchain. With the effect of BitCoin trickling down to other cryptocurrencies, the losses suffered by people were massive.
It was a widely reported incident and stories of how people lost millions have since kept many wary of making use of cryptocurrency. However, with the rise of community-based cryptocurrencies in 2019, that should see a major change.
How Community-Based Cryptocurrency Can Change the Way
A community-based cryptocurrency is more focused on holding the interests of the community (the investors) ahead of profits. It’s a kind of cryptocurrency that aims to help the investors meet their needs while offering them everything that a typical cryptocurrency features.
Such cryptocurrencies, such as Liracoin, thrive on building a supportive community to maintain the interests of everyone involved in it.
Such cryptocurrencies, such as Liracoin, thrive on building a supportive community to maintain the interests of everyone involved in it. They feature extensive decentralization while also offering the best security features available to ensure that all transactions and dealings conducted over the blockchain should and will be conducted the way the investors intend them to.
In an environment and financial system that’s been characterized for its volatility and its unpredictability for a long time, community-based cryptocurrencies can finally turn around its fortunes in 2019. Those hesitating to invest in cryptocurrency will find such platforms to be well suited to their needs.