CryptoCurrency : Game of Coins

What is Cryptocurrency?

It was very long ago until for the first time we heard of the word “Cryptocurrency” and even less we knew what it meant. These days the word is omnipresent more after the dramatic rise of bitcoin price which raised peoples interest in that and cryptocurrencies to a great extent. So first let us understand what exactly the word means. If you take away all the noise around cryptocurrencies and reduce it to a simple definition, it is a digital currency for which encryption techniques are used to regulate its use and generate its release. Unlike the wonted currency, cryptocurrency is not regulated or controlled by any banks or government rather it is a decentralised digital money.

 

How are cryptocurrency records kept?

The digital ledger on which all transactions are recorded is called a blockchain. Data is stored across a network, so it’s not vulnerable to hackers or any sort of exploitation. Each record or series of records on the blockchain is known as a block. Once information is added to the blockchain, it can’t be deleted or changed. It stays on the blockchain forever and everyone can see it.

 

What can you do with cryptocurrency?

Buy Goods– In earlier times it was pretty difficult to find merchants who would accept cryptocurrency as a form of payment but the scenario is not so like that. Today one can use cryptocurrency like bitcoin as a form of payment. Not only can it be used for business purpose but can also be widely used to pay for hotel bookings, flight tickets, college degree, jewellery, etc. Not only this but there are market places like Bitify and Openbazaar which only accepts Bitcoins.

Invest- There’s no need to assert that how investing in Bitcoin has made people a millionaire. Bitcoin is the most identifiable digital currency to the date and just a year back one Bitcoin was valued at $800 but the value had a drastic change and reached a value of more than $7000. With such a market, cryptocurrency has created a sudden hype for investment in this area. To learn more in details about the do’s and don’ts of investment, visit www.learnbitcoinanalysis.com.

Mine– Very much like trading, mining is an investment. A lot of people have made a fortune by mining bitcoins. So what exactly is mining? Well the answer to this question is very simple. To mine a currency you must attempt to solve a computational puzzle known as a hash. People around the globe compete to be the first to solve the hash and those who succeed in doing so receives a block or an amount of the cryptocurrency they mined for.

 

Why should I use Cryptocurrency?

Low transaction fees– Since miners are simply rewarded cryptocurrency from the network itself, so there is basically no or very little transaction fee.

Ownership– With the digital key, the access to your currency lies with you only. This acts as security at the same time.

Accessibility– In this age of modernisation billions of people can get access to the internet and since cryptocurrency is not centralised to any bank or government, the people can freely use it as a mode of payment or for business.

 

Are there drawbacks to using cryptocurrency?

General Awareness– With the growth of people who started using cryptocurrency it is still less to those who use debit and credit cards.

Volatility– Cryptocurrency rates vary greatly which means the amount you pay or receive one day can vary on some other day.

Newness– Since it is at its emerging stage, people are still scared to use it and invest their money on this platform.

Nevertheless, from what has been discussed it is very clear that Cryptocurrency is the next big thing and will change as well as draft the coming years. So to get a more detailed and extensive understanding of cryptocurrency contact sibyvarghese.com.