Fri. Jul 30th, 2021

Financial Planner

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Is it dangerous to make easy money with bitcoin?

money with bitcoin

Who has not been tempted by high returns in a short time? The dream of making a low investment and the money multiply. Thus, we are presented today the panorama of the virtual currencies like bitcoin that is in boom in the world.

money with bitcoin

Its protagonism in the international financial system and the lack of understanding and regulation of this asset have turned it into a focus of fraud such as models of illegal capture and pyramids. This leads us to reflect on the dangers of easy money and to alert Colombian savers based on this popular phrase of our grandparents look because of that so good, do not give so much.

The magic of virtual money

Bitcoin is the first virtual currency appears in 2009 and is attributed to Satoshi Nakamoto, whose identity is unknown. Unlike traditional currencies, a monetary authority or Central Bank does not issue them. Instead, they are backed up by a peer-to-peer computer network, made up of the computers of those who do business with it. The system is similar to the networks used for the exchange and download of programs, music and videos like Bit Torrent and Ares. Its value responds to the supply and demand of those who use it.

Some of the advantages that it presents to the users are that the cost to realize operations is inferior to the one of the use of the traditional money. In addition, like the latter, it serves for the exchange of goods and services through electronic systems, online payment or virtual wallets, which do not require an intermediary. In some countries, it can be used to make payments at physical establishments like restaurants, cafes and bars.

While in Colombia bitcoin is not recognized as a currency, in some parts of the world it can be monetized in dollars, etc. With the use of debit cards issued by franchises such as Visa and MasterCard, linked to virtual wallets, through ATMs or specialized exchange offices. It has been argued that bitcoin’s truly innovative is not the crypto net itself. The technology that supports it called block chain.

Which serves to ensure the reliability of the transactions made making them secure efficient fast thus complying with the regulatory requirements of each of the countries where they operate. According to the report of the consulting firm Oliver Wyman, Deutsche Bank, BNY Mellon Santander and BBVA, other great system players worldwide have invested between $ 65,000 and $ 80,000 million in recent years seeking to understand the application of this new technology to financial transactions.

Therefore, the importance of this new “asset” cannot be ignored and its creation challenges the world monetary system. If we look at it in detail, since the conclusion of the Bretton Woods agreements of 1971 (resolutions of the United Nations monetary and financial conference), something of this magnitude has not been presented in the monetary system.