With a track record of successful investments, Warren Buffett has sealed his name in history as one of the greatest investors of all time. For this same reason, it baffles many that he is not a fan of cryptocurrencies. For many others, it confirms their views of what appears to be a delusion, staked in “invisible money.”
JP Morgan’s new virtual currency shows the rising interest of financial institutions in cryptocurrencies. Not only JPMorgan but also UBS along with other financial institutions have been working on cryptocurrency related projects. While the attempt at a virtual currency is laudable, there are a few concerning features of the cryptocurrency to address.
If you are new to the world of cryptocurrencies, it may surprise you how many are available today. Then, when you hear terms like “green cryptocurrency,” you might be more confused about investing than ever. Luckily, understanding what green cryptocurrencies are is fairly easy once you know what makes them different from other options like Bitcoin.
There is a lot of confusion surrounding the differences between blockchain and cryptocurrency. Since blockchain is closely related to Bitcoin, one of the most widely known cryptocurrencies, it is easy to assume that they are one and the same. However, blockchain and cryptocurrency are two completely different things.
Initially, cryptocurrencies were fairly obscure. Only true enthusiasts would dedicate the time and resources to mining options like Bitcoin, so their activities were not having a major impact on the world around them. However, as cryptocurrencies became increasingly popular and mainstream, more people decided to try their hand at mining, hoping to scrounge up coins with minimal financial investment. As a result, they cumulatively had a larger effect on the environment.