Bitcoins are becoming a popular choice for many but are they safe to use? There are two thoughts for the current use of Bitcoins, you can invest in them hoping to make a good return on the money you have invested or you use them as a payment method to buy goods and services.
What are Bitcoins
Bitcoins are a currency that is virtual, they don’t exist in the real physical world but they are just one currency that forms part of the cryptocurrency markets that exist in the virtual world of computer technology. However, don’t be fooled, they are not worthless and investing in cryptocurrency is big business.
There are loads of cryptocurrencies in the market but there are few that you can use to trade and have purchasing power. Most companies that are beginning to accept cryptocurrency as a payment option are sticking to the first and most well-known currency, the Bitcoin.
It possible to obtain cryptocurrency in two ways, the first way is to become a miner and mine for your currency. You get a percentage of money in the form of cryptocurrency when your computer performs tasks. The other option is to exchange your currency for that of a cryptocurrency; before you embark on this route it is important to know all about the currency and how you intend to store it once you have purchased or mined for it.
Cryptocurrency does come with a high risk factor mainly because it is an unregulated option. There are no banks tied to any of the currencies or governments, the currencies are for the people of the world.
Cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is prior defined and publicly known.
However, the risk is high because if a company collapses, like the Mt Gox Exchange earlier this year, then the money that people have invested in the currencies is lost.
Some of those people who have invested money and in return have seen an increase in the value of the currencies is encouraging. However, as with all investment options, there are risks involved and this is evident in the cryptocurrency markets. There have been some very big losses to the individuals in the current year, with the loss of the Mt Gox. Exchange, this brought more problems than just the collapse of a business, there were threats of personal details sold, to the highest bidder.
The value of the cryptocurrency markets fluctuate, this is similar to any currency, the value can change through the course of the day and this is due to a number of different factors.
One drop earlier this year, caused by the collapse of the Mt Gox Exchange and the following reaction by China, which was to ban the use of any cryptocurrency. This had an effect on the value of cryptocurrencies, many people even predicated the end of all of these currencies, but instead they are growing stronger.
It is possible to withdraw cryptocurrencies from ATM’s spread out around the world, and new and exciting technologies that allow consumers to use and pay for goods and services using Bitcoin. It is possible to obtain a debit card that you can use in any company that has credit and debit card payment facilities to pay for goods and services that company provides.
Therefore, the future of the cryptocurrency market looks great, but as with any investment option, there are possibilities that you will lose all the money you have invested in the market. This is why it is a great idea to understand fully the pros and cons for using and investing in the cryptocurrency market before investing any capital.