Like any other currency, cryptocurrencies is used for buying goods or services. However, unlike other currencies out there, cryptocurrencies are digital as well as use cryptography for offering safe transactions online. Whereas cryptocurrencies are used for buying things, most of the interest over the unregulated currencies is trading them for the profit, with the speculators sometimes driving rates skyward. So, here are some things that you need to ask about the cryptocurrency, and what you need to look out for when storing your bitcoin in bitcoin wallet.
What’s cryptocurrency?
Cryptocurrency is one kind of the payment that is exchanged on internet for the goods and services. Most of companies have already issued their currencies, called as tokens, and will be traded particularly for the good and service that company offers. Think about them as you will arcade tokens and casino chips. You will have to exchange the real currency for cryptocurrency to access good and service.
The cryptocurrencies work by using the technology named as blockchain. Blockchain is the decentralized technology that is spread over many computers who manages or records the transactions. The part of an appeal of the technology is the security.
How many are there & what is their worth?
Over 2,200 different cryptocurrencies get traded publicly. Cryptocurrencies continue to increase, raising money via initial coin offerings. Total value of cryptocurrencies was around $246 billion, and total value of every bitcoins, most popular currency, came at $136 billion.
Why are they very popular?
The cryptocurrencies appeal to supporters for various reasons. Let us look at some popular ones:
- Some supporters like a fact that the cryptocurrency removes the central banks in managing any money supply, as with time the banks generally tend to reduce value of money through inflation
- Supporters see that cryptocurrencies like bitcoin as a currency of future & are racing to purchase them now, before they gets valuable
- Speculators like cryptocurrencies as they are going up in the value & have got no interest in currencies’ acceptance as the way of moving money.
- The cryptocurrencies might go up in the value, but most of investors see it as speculations, and not the real investments. Reason? Like the real currencies, even cryptocurrencies does not generate any cash flow, thus to profit somebody needs to pay a little more for currency than you did.
- Some supporters like this technology behind the cryptocurrencies, blockchain, as it is the decentralized processing & recording system and will be secure than the traditional payment systems
