What It Is & How It Works
You may have heard of the new “cryptocurrency” BItcoin on the news, social media, or Netflix. But what is Bitcoin anyway? What is this new cryptocurrency that is taking the world by storm? And what even is a cryptocurrency for that matter? According to Wikipedia, a cryptocurrency “is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.’
Bitcoin is one of the most popular cryptocurrencies available today. This currency relies on a decentralized system which allows people from all over the world to send bitcoins over the internet. One of the best parts about this digital currency is that it doesn’t involve a third party like a bank or government entity. All transactions are cheap and some are even free. A transaction made over the internets is fast and inexpensive, making it the best choice when compared to traditional currencies in circulations. Bitcoin is an incredibly resilient network, meaning that no individual can change, reverse, or police any transactions.
How Do Cryptocurrencies Work?
Digital currencies are new currencies that are online and based on the latest technology. With this new payment system, you can send, receive, and store money without using your name or a visiting a financial institute. This cryptocurrency runs on blockchain (public ledger) and is becoming a worldwide phenomenon.
Cryptocurrencies are using created using s technique known as “mining”. Mining is done by using tools that use a lot of power. This device solves complex mathematical equations in order to receive digital currency. Users are not allowed to buy digital currencies from brokers and store it in cryptographic wallets.
Experts believe the future of stocks and bonds as well as other financial assets could soon be traded over for digital currencies and blockchain technology.
Why You Should Use Cryptocurrency
Since digital currency is becoming so popular it is important to at least understand how this unique currency compared to traditional currencies. Of of the most appealing factors of this currency is that it is secure and offers anonymity. With traditional currencies, that’s just not possible. Bitcoin transactions can’t be changed or reversed. This is why millions of people today are considering making the switch to Bitcoin.
Compared to the current traditional currencies, fees are charged and the time taken to complete transactions are very slow. By nature, cryptocurrency is decentralized. This means that anyone can access them and they don’t need approval or authentication from financial institutions or banks.
Bitcoin has changed the financial world and how people see and value money. In many countries, Bitcoin has become part of the economy and is being used on a regular basis.
