Cryptocurrency is any currency in a digital or virtual state; encryption (cryptography) is used to shield transactions in cryptocurrencies. There is no central authority to administer or regulate cryptocurrencies. A decentralized system is operated to record transactions and issue new units. Cryptocurrency is a digital earnings system that does not affect banks verifying transactions. Cryptocurrency payments exist exclusively digitally in an online database describing specific transactions. They do not imply transactions with physical money that have circulation and the possibility of exchange in the real world. When transferring funds in cryptocurrency, transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.
Bitcoin As an Investment Object
The first official bitcoin to dollar exchange rate was published on Year 09 October. Then for one dollar, they gave 1310 BTC. For comparison, less than a year ago, in February 2016, one bitcoin cost 375.89 USD. Experts agree that demand will not decrease. Therefore, the price will remain the same or will increase. The Bitcoin community is confident that by the end of 2018, the value of one BTC will exceed $2000. However, many focus on the volatility of the currency, which makes any forecasts meaningless. In addition, the future fate of cryptocurrencies bitcoin, as the most popular representative, is influenced by legality. If this currency is outlawed around the world, its value will skyrocket.
Where To Get Cryptocurrency?
Mining is the extraction of cryptocurrency based on solving mathematical problems by a computer. This process was widespread several years ago, when there were much fewer participants in the chain, and everyone could mine a few bitcoins for themselves – it was enough to have a powerful computer. Mining had to be paid for with spent electricity and a worn-out video card. The time when a home PC was sufficient to receive cryptocurrency is gone forever. The competition among miners has increased, and generating new bitcoins requires enormous computing power. Mining has become the priority of bitcoin farms – natural data centers with thousands of operating processors and video cards.
What Are Methods of Mining Cryptocurrency Known to A Simple User?
- Exchange services – we convert money into cryptocurrency and vice versa. The scheme is simple and standard for everyone who has ever changed currency online.
- Exchanges – the high volatility of cryptocurrencies makes them a welcome guest here. If you have shares in, say, Apple or Netflix, you can easily exchange securities for cryptocurrencies.
Wallet On PC
They are famous for their incredible size, divided into thick and thin. The former download and updates all blocks with deals; the latter store such information on the developer’s servers. Such a wallet is reliable; the disadvantage is the lack of mobility. There is hardly a person who wants to go shopping with a laptop. Of course, there is no problem if the transaction takes place at home.
Mobile Clients
They do not download the blockchain, so they take up much less space. The wallet is stored on the smartphone, and you can pay with cryptocurrency at any time. We recommend downloading proven applications for Android, iOS, Windows Phone, and Blackberry (as well as for PC) on the official websites of cryptocurrencies. Here you can choose a bitcoin wallet. They vary from one another by means of security – we advise you to give preference to those that support two-factor authentication and guarantee essential privacy.
Online Services
Creating a wallet on a third-party service is simple. Please focus on the reliability of the service, genuine reviews of its customers, and the size of the commission for operations with online coins. The primary disadvantage of this option is that the cryptocurrency is not under your control. Experienced users recommend you not put all your eggs in one basket, use several online services, and do not trust all your crypto coins in one vault. Nowhere without standard security rules – let’s say a firm no to suspicious programs, pass strangers’ passwords, and follow strange links. Another thing is the loss of cryptocurrency directly during transactions. The legal position of this money is somewhat shaky, so it will not work to return the lost money.
Hardware Wallets
These are hardware devices on which cryptocurrency is stored in encrypted form. They are sold together with an individually generated cipher card and a data recovery sheet. As a rule, they look like a regular USB flash drive.
Conclusion
Since the legal position of bitcoin is very shaky, its reputation largely depends on the companies that support the cryptocurrency. Among the latter are corporations such as Microsoft and Apple. Bill Gates directly mentioned bitcoin, noting that the technology is promising for the future of global business. So, you can pay for the company’s products in the Windows Store, buy a paid application for Windows Phone, or a game on Xbox using electronic coins.
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