Cryptocurrency & Bitcoin
What Is a Cryptocurrency?
A cryptocurrency like bitcoin is virtual currency traded peer-to-peer on blockchain technology independent from centralized authorities such as banks and governments. Cryptocurrencies have no intrinsic value due to being entirely digital so they’re backed by nothing physical (i.e., gold) – meaning there isn’t really anything behind them except confidence in their worthiness and this lack of backing often leads skeptics to point out Bitcoin volatility rates at 10x higher.
Bitcoin is a fantastic new thing that people are just starting to learn about. It’s like cash for the internet age and it has many advantages over other forms of payment because you don’t need any expensive equipment or bank account, instead all transactions happen through an online system called Blockchain which makes everything more secure.
How Do Cryptocurrencies Work?
Cryptocurrencies rely on blockchain technology to complete a transaction via an intricate P2P network. Blockchain verifies the transfer request and adds it to other transactions in order for them all to create blocks of data that are added onto existing ledgers (which can then be used by others). Once your block is successfully entered into the chain, you have completed your cryptocurrency transaction!
Are There Investment Opportunities with Cryptocurrencies?
Absolutely, yes. Cryptocurrencies have become a hot topic in finance with major financial institutions and countries adopting them. There are risks linked to market movements, high volatility and economics so it’s important for investors to be careful when investing their money into cryptos.