In the last two years, the hype revolving around Bitcoins has increased a lot. People want everything on their phone in this day and age, from finances to their grocery shopping on their phones.
When Bitcoin first came under the radar in 2009, it was valued at 0.0008USD, and now a Bitcoin is valued at around 35,000. The prices keep changing, however, but that is not the point.
My point is that Bitcoins have come a long way and have established themselves as the most popular cryptocurrency, which can serve as an alternative to fiat currencies. To start investing in Bitcoins, visit click here to create your trading account.
Top 7 Bitcoin Terminologies You Need To Be Aware Of In 2021
As you are reading this article, you also must be someone who likes to keep a close eye on the crypto industry. Bitcoins are on the verge of becoming the next big-time, and 2021 is the perfect time to learn some Bitcoin Terminology.
It is the most important Bitcoin terminology you should know. Smart Contracts are basically pre-set terms and conditions of contracts. It is set up to avoid fraud.
For instance, A is trading with B. Both have set some terms and conditions related to their trade agreement. A smart contract does not let either one of the parties violate the present terms and conditions.
HODL is an abbreviation for Hold. A person says HODL when he is asking someone to hold on to their coins and not sell them. This term is specially used after a market crash. This is a long story during the crypto bubble burst in 2013. A person allegedly carrying a significant number of Bitcoins was advising people to hold on to their Bitcoins as most investors were selling off due to the market crash.
The funny part is that since the individual was drunk, he kept typing “HODL” instead of HOLD three to four times in the subreddit of Bitcoins. This soon became viral, and a ton of memes was made out of it.
Fear of Missing Out (FOMO)
It is actually a very strong force that works in all financial markets. This is also a tactic used by some of the experienced investors to generate a bullish market. When this trend is generated, investors fear that they are missing out on something worthwhile.
Also popularly known as halving. It is basically the reduction of rewards a miner can earn after successfully mining a cryptocurrency. This process is extremely crucial for keeping the circulation of cryptocurrencies in check.
All cryptocurrencies are ‘deflationationary’ in nature, which sets them apart from fiat currencies, making them a safe haven for investors. The process of halving takes place once every four years. Each halving cuts the mining rewards by half. Halving made sure that Bitcoins stay a scarce resource.
The old and experienced investors in the cryptos space are often referred to as whales. They are called whales because they hold so much that their pumping and dumping decisions can make waves in the market.
Even though such investors’ percentage is a little under 5% yet, their decisions make a huge impact.
The newbies are often referred to with this phrase. They are called ‘Weak hands’ since they do not have proper knowledge of how the crypto market works, and whenever there is a slight market jitter, they panic and start selling off their Bitcoins. Some even sell all their Bitcoins and buy altcoins. These decisions often prove to be acts of stupidity.
Probably the most common Bitcoin terminology, FUD is an abbreviation for, uncertainty, and doubt. As you know, the market of cryptocurrencies is filled with misinformation and rumors. So whenever a person panics after hearing some rumor, a wise investor tells him not to FUD.
There you go, above was the list of 7 most commonly used Bitcoins terminology to be used by you in 2021. The records that Bitcoins have been making and breaking are quite something, and the people or the Governments are not able to avoid it any further.