The use of smart contracts based on the Ethereum blockchain – protocols allowing the self-execution of contracts once certain conditions are met – will eventually become headline news as well. A self-proclaimed “green cryptocurrency”, Cardano has somewhat weathered the storm brought on by the environment concerns spoken about by Tesla CEO Elon Musk. In contrast, a ‘cold’ wallet is a portable encrypted device such as a USB stick that allows you to physically carry your bitcoin. More secure against hackers than ‘hot’ wallets they can be very expensive. In the beginnings of cryptocurrency, global governments did not have active policies for how cryptocurrency should be taxed. As the value of cryptocurrencies has increased, governments https://en.wikipedia.org/wiki/Cryptocurrency have recognized that there are tax revenues that can be collected. In 2021, the government of El Salvador became the first nation to accept Bitcoin as an official currency. Blockchains rely on users to collate and submit blocks of recent transactions for inclusion in the ledger, and Bitcoin's protocol rewards them for doing so successfully. There are other ways to manage risk within your crypto portfolio, such as by diversifying the range of cryptocurrencies that you buy. Crypto assets may rise and fall at different degrees, and over different time periods, so by investing in several different products you can insulate yourself — to some degree — from losses in one of your holdings. Those wild shifts in value may also cut against the basic ideas behind the projects that cryptocurrencies were created to support. For example, people may be less likely to use Bitcoin as a payment system if they are not sure what it will be worth the next day. Paul Krugman, winner of the Nobel Memorial Prize in Economic Sciences, has repeated numerous times that it is a bubble that will not last https://diigo.com/0nlhl6 and links it to Tulip mania.
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