The Future of Money: What Are Cryptocurrencies?

Cryptocurrency, Bitcoin, took the news by storm and it was reported that it had grown vast amounts since its inception. This has made early investors and adopters extremely rich. With more and more cryptocurrencies being created and released all the time, what are they and how do they work? Also, are they the future of money?

The Future of Money - Understanding Cryptocurrencies

What Are The Types of Cryptocurrency?

There are several types of cryptocurrency, but they all work in a very similar way. Firstly, most cryptocurrency has a set amount that will ever exist, and it can only be created by using a computer to complete calculations. Making one of a cryptocurrency is called mining, and it can be done for free if you have a computer that is capable of doing it.

There are plenty of websites where you can mine cryptocurrency such as Nice Hash, which lets you mine your own Bitcoins. Anything that you make is put into a wallet of currency that you own. There are a lot of types of cryptocurrency to mine or buy including Bitcoin, Ethereum, Ripple, Monero and Dash. There are plenty of others, but these are some of the main contenders. Which one you invest time or money into will depend on whether you think it will continue to be popular and grow in value.

What Can They Be Used For?

You might have some cryptocurrency now, but you aren’t entirely sure what you are meant to do with them. Cryptocurrency is just like any other kind of currency for the most part and as such, it can be used to buy things. This is limited to stores and companies that accept them as a form of payment, but more and more places are allowing payment via cryptocurrency all the time. You can save them and wait for the value to increase before exchanging them for another currency of your choice and hopefully make a profit.

You can even make an IRA investment with Bitcoin and convert your retirement fund into a cryptocurrency. A lot of people like different cryptocurrency due to the anonymity it provides as unlike standard currency it is much harder to track. Cryptocurrency such as Dash is especially popular for this very reason.

What Are They Worth?

The exact value of cryptocurrency changes much like any other currency. In the same way, the dollar and pound sterling exchange rate is constantly changing due to a range of factors, cryptocurrency changes in a similar way. For this reason, it can be volatile. It can be even more volatile than standard currency because it is still finding its feet in the world.

In fact, the news that South Korea plans to ban Bitcoin has meant that the value of Bitcoin has taken a hit. In a similar way to how things like Brexit cause the British Pound to take a large hit, cryptocurrency can suffer in the same way.

However, as has been proven by Bitcoin, it can also work the other way and mean that the value skyrockets, too. If you’re wanting to research other cryptocurrencies that are popping up in today’s digital world, look at new coins and see if you’d like to yuan coin kaufen (buy yuan coin) which is the Chinese Central Bank’s first cryptocurrency to be launched, or other similar coins that may one day take the same route as Bitcoin!

If you are now convinced and want to buy bitcoin online with your debit card, check out xcoins for a smooth transaction.  

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