Cryptocurrency Is Changing Che Way We Think About Money

Bitcoin has been around since 2009, and it’s not going away anytime soon.

If you haven’t heard about Bitcoin yet, it’s time to educate yourself on this exciting financial opportunity and how it could affect the way you think about money in the future. Let’s get started!

1. What is a cryptocurrency?

 

Traditional fiat currency — like the US dollar — the U.S. government issues currency and tracks each bill (and its transactions) by printing units of cash and calculates how much is in circulation.Cryptocurrency has no physical note. Instead it uses encryption to create new currency units and verify transactions.New coins are created by a process called mining where people use their computers to solve complex math problems.Each correct answer generates coins and verifies transactions across the entire network.

2. Is it safe?

Since its launch in 2009, Bitcoin has become a controversial form of currency and payment systems.Its price has remained volatile ever since, and this is sometimes associated with illegal activities such as drug trading or money laundering.Nonetheless, it’s growing in popularity as a payment option for everything from a restaurant menu to paying the rent.

But is it safe to say? Everyone seems to have an opinion on Bitcoin, but many don’t know where to turn when they want answers.Bitcoin is just software. Isn’t that scary? If my computer crashes will my bitcoin be lost? How do I store my bitcoin safely?

3. How does this work ?

Cryptocurrency, such as Bitcoin, is a digital currency that relies on cryptography to process a transaction.When you understand how blockchain technology works how it works is not that complicated. Simply put, Bitcoin (and other cryptocurrencies) are formed by a mining process where individuals are exchanged for bitcoins upon authenticating transactions on a blockchain network.

Blockchain acts as a public ledger where all transaction records can be viewed by anyone and can be verified from every network node instead of depending on the central recording authority to verify information.The intrinsic nature of blockchain technology means that there is no person or entity in charge of recording new transactions or updating transaction blocks.

4. Who made it?

What is Bitcoin? Formed in 2009 by a mysterious figure or group of figures called Satoshi Nakamoto, Bitcoin was created to serve as an alternative currency (or sources of exchange beyond government control).Although there are lots of conspiracy theories surrounding its creator(s), they remain anonymous today, Nakamoto’s last known correspondence was mailed out in 2011.So who exactly invented bitcoin? It’s hard to say — technology itself makes anonymity possible — but one thing’s for sure: it’s been wildly popular since its creation and is here to stay.For more information on bitcoins and how they work, check out our introductory guide to how bitcoins works.

5. Where can i use it ?

While it was initially used for illegal, illegal purchases on sites like the Silk Road, today you can use Bitcoin to buy everything from your morning coffee to plane tickets to Dubai Can do.As long as an establishment accepts digital currencies, you’re good to go. Use a smartphone app like Coinbase (or blockchain) to find institutions near you that accept Bitcoin.If you want to search by country or region you can also check coinmap or bitpay.

6. How do I buy it?

That’s it, to buy a currency like Bitcoin, you need to use another currency.In other words, you can’t buy bitcoin directly with the USD. Yet, Coinbase remains a popular platform out there for buying and selling cryptocurrencies such as Bitcoin and Ethereum.But Coinbase doesn’t let you buy or sell cryptocurrencies without a credit card, making it less convenient for those looking to trade crypto for crypto or use cash as a payment method.If – purchasing virtual currencies with cash in person or online is important to you, then many exchanges like Local Bitcoin and BitQuick can help you get started quickly by allowing you to buy bitcoin with cash Can do it in private.

7. Should I invest in this?

Bitcoin is a cryptocurrency and as such, it can be a good investment.If you decide to invest in Bitcoin, your best bet is to buy some money — $25 or less — and play with it just for fun.Think of it like poker chips and take no personal losses if you lose your investment.You can follow some of our other tips to minimize risk when investing.