SYRACUSE, N.Y. (NCC News) — As technology continues to revolutionize how we work, live, and spend, cryptocurrency is becoming increasingly popular in the shift towards digital payment.
Cryptocurrency or “crypto” is a digital asset you can use to buy regular goods and services or invest in stocks. Cryptocurrency is a decentralized and encrypted medium of exchange. Unlike the U.S. dollar or the euro, where the government and banks’ have “centralized” authority, there is no central monetary authority to manage or maintain the value of a cryptocurrency. Instead, a blockchain system accounts for each transaction and keeps track of who owns what. With over 18,000 cryptocurrencies in existence, only some find immense popularity.
Types of Cryptocurrencies:
According to Pew Research, with the number of crypto enthusiasts multiplying, nearly 16% of Americans have invested in cryptocurrency. In addition, celebrities like Megan thee Stallion, Lebron James, and Larry David are pushing crypto in their sponsorships. In March, the spread of cryptocurrency caused President Joe Biden to sign an executive order on ensuring responsible development of digital assets. The order directs federal agencies to examine the risks and benefits of cryptocurrency.
Central New York is embracing the digital asset and installing several ATM machines that now include Bitcoin as an option to withdraw payment. Toomey Abbott Market in Syracuse is one of many that currently offer the ATM.
Toomey Abbott Market store clerk Zabiuwlah Nasir said this is because the way we pay is changing, “people are not carrying cash, not that much.”
However, SUNY Oswego economics professor Elizabeth Schmitt does not believe cryptocurrency is a rock-solid financial asset.
Despite its increasing popularity, Schmitt said, “cryptocurrency isn’t there yet, it’s not there as functioning as money.” Yet, Schmitt said the biggest draw for people to cryptocurrency is “seeing its value rise, they assume its value is going to continue to rise, and they want to get in on this increase in value.”
Schmitt suggests when considering entering the world of cryptocurrency to do your research because Schmitt said, “it is not the same as pennies in a jar or dollar bills in your wallet.”
But, most importantly, Schmitt said invest in cryptocurrency with money you can afford to lose.