Newton’s 3rd law clearly states that for every action there is an equal and opposite reaction, this can have implications in our day to day lives in many areas, from school work where we’re first taught this law and well into our adult lives, and yes, in financial matters as well.
If you look at one action being the ongoing expansion of banks and financial companies, often at the expense of the common man, there is bound to be a reaction to it, in the old days, if an individual got overzealous or greedy in their endeavors, he would often be removed by the public (often quite violently) and replaced with a system or individual that was more open minded to the requests of the people.
In recent times, such a revolt would be far more difficult to manage and maintain, the greedy party is quite often a large, faceless, nameless corporation, so there is nothing for the public to attack en masse.
Enter Bitcoin, which, for lack of a better term, is a currency that is built for and maintained by the people.
We’ve spoken at length in other articles about the US dollar and its financial impact around the globe, so for now, we’ll concentrate on the Bitcoin side of this currency pairing and how you can profit from trading Bitcoin/USD binary options.
Bitcoin is, in essence, a fully independent and computerized mode of payment or currency, invented in 2008 by Satoshi Nakamoto, Bitcoin was meant to be a peer-to-peer payment method, it uses nodes to verify each transaction, which is then logged in a publicly distributed ledger titled “the block chain”, individual bitcoins are created when a user dedicates his or her computer’s power to assist in verifying Bitcoin based transactions and “write” them digitally into the block chain, Bitcoins can also be attained as payment for products or services, mostly on the internet, but also in some real world locations.
Bitcoin’s popularity has grown in the years since its inception, mostly because of its inherently lower commissions and fees; however, there have been concerns raised over Bitcoin in a variety of fronts – first and foremost is the fact that consumers paying with Bitcoin are often not aware of the fact that they have no financial backing should a deal go badly, similar to charge-backs or refunds mechanisms that exist with credit cards, in addition to those concerns, law enforcement agencies have been worried that rising Bitcoin use may attract criminal elements that will use the currency for purposes that are less than legal in a variety of ways.
There are negative and positive sides to trading Bitcoin binary options in general and binary options of the Bitcoin/USD pairing specifically. We assume you are already well aware of the keys to successfully tracking the movements of the USD, tracking Bitcoin is both easier and more difficult at the same time.
It is easier due to the fact that the currency is entirely digital, which means it exists entirely in virtual space, which makes monitoring it far easier, as it rarely depends on real world conditions that may affect its rise or decline, however, at the same time, since the primary cause of Bitcoin’s movements would be the influx of currency into its network and there is no positive way of knowing exactly when such an influx will take place trading is often very speculative and there for – slightly risky.
But as any good binary options trader knows – with no risk there is no reward, so you may want to head to virtual space and get yourself some hard earned cash.