Bitcoin: Decentralized Payment System & Hive Blockchain
Bitcoin is a cryptocurrency that was developed in 2009 and this is thanks to the financial crisis of 2008, many users of the traditional banking system have complained about the functioning of the bank and all its financial protocols, I am not really giving bad reviews, I just want to mention that having a decentralized p2p payment is a really great alternative.
When we make a payment in BTC we can really say that there is no bank or government as an intermediary, it is a really decentralized payment and that's good, but let's talk a little bit about Binance, many people have complained about this Exchange because it is simply too centralized or because they don't give you access to your keys.
Hive-Engine & Binance (BTC Payment)
I think we are talking about a very interesting topic, at a certain point it is fine to centralize payments with BTC, but there are inexperienced users in this matter, blockchain is a technology that is growing, it is true that Binance can issue necessary paperwork for a bank loan, that is great to a certain point, but there is the possibility that your wealth is reflected in some radars or in centralized databases, however in a DEX that does not happen, when you have the keys to your cryptocurrencies is really complicated that your wealth is seen on screen.
I want to explain this because it seems to me a really very interesting topic, I would like to mention that Bitcoin is already an official currency in El Salvador, it is really very unlikely that this technology will die or collapse, we have to take into account the financial crises, it is true that we are going through a really very serious bear market, but I want to show the price of Hive and BTC today so that we realize what this really means.
I think we are in an uptrend and that may be true, hopefully this is not just momentum.
I should mention that we are in a good time to sell our assets and that is something to keep in mind.
Importance of investing in BTC and having a diversified portfolio
from my point of view investing in BTC is a good idea, we can do it through cryptocurrency mining, it is good idea, I think we can have an APR of 70% with BTC mining, another very important point is that we can generate income in BTC and then do BTC/HIVE trading and that is really great.
Another very important point is that we can make profit with BTC mining or trading, we can trade BTC/HIVE and then turn on LEO, it is a great opportunity that you should not overlook.
BTC mining risks
On the Internet there are many hackers and these hackers can detect your IP, really the web3 is very risky for this reason and we must be very cautious when making investments in BTC.
When you put a machine to mine cryptocurrencies you are actually exposing your IP on the Bitcoin network and that is a very important point, when you connect to the Bitcoin network and start mining this cryptocurrency, your network is exposed and a hacker can simply detect your IP very easily, experts recommend to always keep everything end-to-end encrypted and really strong passwords.
Why have a diversified portfolio in cryptocurrencies?
You can really take advantage of a market phenomenon called "Pump" and you can also take advantage of this phenomenon in DeFi, but not only this, you can trade BTC/HIVE, ETH/DOGE, BTC/WAX and among many other pairs and increase your Hive Power or your Leo Power effectively.
I think a great strategy is simply to have assets in DeFi generating dividends daily, but this is for big investors, I can mention that we are simply making a good investment if we add liquidity in CUB, I think it is a great idea because we can generate passive income and increase our LEO effectively, having a decent Leo Power can be really great to bring value to the LeoFinance community.
Posted Using LeoFinance Beta