What is Cryptocurrency? How to Use, the Future of Crypto, the History of Bitcoin

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2019-04-08
What is Cryptocurrency? How to Use, the Future of Crypto, the History of Bitcoin

Cryptocurrency market is actively developing and expanding. This relatively new industry is causing a lot of questions and attracting a huge number of investors, businessmen and ordinary people. “What is the future of cryptocurrency?”, “How to choose cryptocurrency exchange?”, “How to sell Bitcoins?” “What about cryptocurrency mining”? Millions of people read cryptocurrency news everyday and keep a track on the cryptocurrency or Bitcoin exchange rates. Bitcoin, Ripple, Ethereum, Dash, Monero…modern cryptocurrency market is full of unknown names and brands, which offer a new approach to economics, banking, business, marketing, finance…Cryptocurrency calendar is full of events, which intrigue and surprise everyone.

Cryptocurrency is a virtual currency, supported by the blockchain technology and applies cryptography in order to confirm transactions and protect its users. Moreover, cryptography also controls the formation of new cryptocurrency units. There are many debates regarding what is a cryptocurrency – alternative to money, investment or security. Thus, a real Bitcoin value need to be defined in the future. Some specialists are reckoned that it can be easily applied in order to pay for goods, services and products. Other people consider cryptocurrency as a good store of value or investment. There are still many questions that need to be answered regarding this industry.

The major features of modern cryptocurrencies are anonymity, P2P structure, decentralization and independence.

How does Bitcoin work? 

Bitcoin and fiat currencies

Bitcoin and fiat currencies

Each transaction includes public keys of a sender and a buyer (bitcoins wallet addresses) and the number of coins sent. It also has to be accomplished by a sending party with his / her special key. After that the transaction needs to be verified. Please, note that if you are not interested in Bitcoin mines and not a Bitcoin miner you will not be able to approve transaction by resolving a special crypto puzzle. Bitcoin miner takes a transaction and stamps it as legitimate. This is how it is spread around and added to a blockchain. You can not delete or change the details of a transaction after it is confirmed as legitimate. All cryptocurrency networks can not function properly without consensus of the cryptocurrency community. All members should be in solidarity regarding transactions and balances.

Should Bitcoin be legalized?

There are many arguments whether the the world community should legalise Bitcoin as an alternative to real money. For example, in South Korea the representative of the Yong-Jin Park from the ruling Democratic Party of South Korea announced that in the coming months, changes will be published in the regulatory framework for crypto-terminology, including Bitcoin. South Korea this year is one of the world’s largest buyers of digital currencies, and this the news is an extremely pleasant and timely surprise for the enthusiasts of the detachments. The first step is the revision of the Law on Electronic Financial Transactions

How can one use cryptocurrency?

Buy products, goods, services for cryptocurrency.

No other top cryptocurrency – Ethereum, Ripple, Dash – can be used as widely as Bitcoin as a payment method. You can use Bitcoin as a payment both online and offline. The number of shops, which accept Bitcoin or other cryptocurrency, is constantly growing. You can find huge shopping malls in Japan, which only accept crypto as a payment.

Pay for eduction with cryptocurrency 

Example:

Famous and well-established South-African business-school Red & Yellow Creative School of Business, has included in its tuition payment methods Bitcoin.

“Artificial Intelligence and robots are going to replace most of the jobs we know today. Red & Yellow is the business school where talented people go to develop the career skills they need to thrive in this digital world”,

– announced on the official website of the business school.

Without doubt, it is a huge developmental step for South Africa and African continent overall, but Red & Yellow Creative School of Business is not the first university, which started accepting cryptocurrency as a way of payment. In October 2017, The Lucerne University of Applied Sciences and Arts in Switzerland announced the decision to accept Bitcoin payments.

Bitcoin investment

In case you do not want / or do not have an opportunity to buy good for Bitcoin and just want to buy Bitcoins for cash, credit card or Pay Pal, you can consider it as an investment. Investing in Bitcoin can sometimes be risky and even dangerous, so you should be ready to lose money. Thinking, how to invest in Bitcoin? It is not that difficult! Especially when you are aware of the options – cryptocurrency exchanges, Bitcoin gift cards, Bitcoin ATMs and much more!

Read more about how to buy bitcoins here.

Some specialists compare cryptocurrency, namely Bitcoin, with gold or other popular investments. Cryptocurrencies outperformed gold and bonds in terms of investment attractiveness. This is reported by RNS with reference to the report of Knight Frank under the name The Wealth Report 2018.Over the year, cryptocurrencies as an investment instrument increased by 16%. At the same time, gold amounted to 15%, and bonds – 6%. Investments in shares of non-public companies increased by 39%, while cash and luxury items increased by 29%.

Bitcoin future

During the World Economic Forum in Davos cryptocurrency enthusiasts and leaders of cryptocurrency industry said that they are pessimistic about the future of Bitcoin and insisted that Bitcoin will never be more as important for financial industry as fiat currency. For example Joseph Stiglitz, a well-known American economist, Nobel Prize winner and a professor at Columbia University commented “We have a good medium of exchange called the dollar. We can trade in that. Why do people want bitcoin? For secrecy,” he said. Swiss National Bank chairman Thomas Jordan was also in favor of serious limitation on how Bitcoin can be used. “There is an important principle: Similar activities should be similarly regulated,” he told listeners, “and Bitcoin and other cryptocurrencies have some characteristics of other investment instruments.”

 

CRYPTOCURRENCIES
  • bitcoinBitcoin$5,224.67
  • ethereumEthereum$179.25
  • rippleXRP$0.355725
  • tetherTether$1.00
  • eosEOS$5.80
  • stellarStellar$0.125711
  • litecoinLitecoin$87.76
  • cardanoCardano$0.086236
  • tronTRON$0.030072
  • moneroMonero$69.61
  • iotaIOTA$0.349773
  • nemNEM$0.073191
  • dashDash$132.25
  • neoNEO$12.50
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