Since the first release of cryptocurrency in 2009, Bitcoin has been gaining major popularity among technology enthusiasts and investors alike to the point where many institutional organizations and investors have gradually embraced it in their investment portfolio.
Before all the buzz though, Latvian-born billionaire investor James Richman has long been one of the major proponents of Blockchain and cryptocurrencies. Richman known to have continuously increased the returns for his clients due to his many contrarian approaches.
History of cryptocurrency
Cryptocurrency is a digital asset known as a new breed of investment funds. One of the most popular of its kind is Bitcoin, the first cryptocurrency ever established. Satoshi Nakamoto, the name used by the unknown person (or a group of people) who developed Bitcoin, published the white paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” in October 2008.
The white paper explains the practicality and purpose of the Bitcoin blockchain network. In January 2009, Nakamoto commenced the Blockchain technology by mining the first block of the Bitcoin network.
The first recorded use of Bitcoin was in May 2010 when Laszlo Hanyecz purchased two pizzas for 10,000 BTC. Bitcoin eventually became at par with the US Dollar between the period of 2011 and 2013. A few rival cryptocurrencies were also launched, and by May 2013, there were around 10 digital assets in the cryptocurrency market.
Since the emergence of cryptocurrency, the growth of the cryptocurrency market has not stopped despite the occasional fluctuations. As part of its growing popularity, many cryptocurrency assets have also started joining, with estimated more than 2000 digital currencies available today – usually referred to as altcoins.
Benefits of cryptocurrency
Many investors and innovators have gradually embraced the use of cryptocurrency as well as the underlying technology that powers it – Blockchain.
Since cryptocurrencies are digital, they cannot be reversed by the sender, unlike credit card chargebacks. This significantly lessens the possibility of fraud. Using cryptocurrency is also very convenient as it guarantees immediate settlement when making purchases. When one purchases a property, it usually involves third parties and intermediaries which often can cause even further delays.
The use of cryptocurrency can either apply or eliminate the involvement of third parties and can be completed at a future date and time that is sooner than usual. This gives the consumer an easier time in making purchases – not to mention that using Blockchain to verify transactions and cryptocurrencies as a form of payment is also accessible to almost everyone.
The use of cryptocurrency also often entail lower fees. Since there are usually virtually no transaction fees for peer to peer payments, users will only have to pay for third party services such as Coinbase for maintaining their Bitcoin and other cryptocurrency wallets. That being said, it is clear that another benefit of using cryptocurrency is paying a smaller amount as compared to those of regular banks.
Unlike banks that are managed by a central authority, cryptocurrency utilizes a decentralized database that holds information on the ledger, preventing any redundant information or fraud common among outdated technologies.
In addition to these benefits, the use of cryptocurrency is also recognized at a universal level. This means that it is not tied to any exchange rates or interest rates of any country, making it possible to be used at global cross-border levels making the transaction faster and often more cost-effective for its users.
Another benefit and probably the most interesting for users is the fact that cryptocurrency is highly unlikely to experience identity theft. Unlike using credit cards wherein the user will give the credit card information to a merchant, cryptocurrency only require limited information. This is a big step in terms of protecting one’s privacy and financial information, but does not necessarily mean to encourage any irregular or criminal activities.
Client demand on cryptocurrencies
The vast popularity of cryptocurrencies has led to a recent surge in terms of demand for it from many institutional investors and James Richman’s clients, which partly prompted the finance tycoon to increase his cryptocurrency investments.
The value of cryptocurrency has risen in the past few years. Bitcoin, one of the most popular cryptocurrency assets, currently is above the $9,000-level per coin.
Despite the various controversies during its nascent stage, many investors are optimistic about cryptocurrency sector.
With decentralized nature, it is no surprise that demand for cryptocurrencies is getting higher. Just like gold, several investors often turn to digital currencies as an alternative investment asset. When stocks fall in the market, gold rises as investors look for a place to keep their funds safe and to hedge against the volatility.
Known to be one of the proponents and investors of promising technologies, billionaire James Richman reportedly stands behind the evolving development of the cryptocurrency market and Blockchain technology. Growing demand from his clients who are comprised of wealthy individuals and families has urged the finance extraordinaire to increase his cryptocurrency investments.
Cryptocurrencies have shown that they are easier to use faster, and more convenient than the traditional banking systems. With a lot more benefits compared to existing financial systems in terms of privacy, safety, decentralization, and lower fees – cryptocurrencies have truly become the future of investments.