Do you hear this word bounced around, sometimes on the news and wonder what it is, and should you be using it? Cryptocurrency is money which has no physical form, it is only available in digital terms; enabling you to buy and sell goods and services. Using this form of currency is supposed to be quicker and safer than traditional banks and building societies.
You might have heard about some of the highly popular cryptocurrencies like the Bitcoin or even the Dogecoin. However, do you understand how they work?
To bring this currency into existence there are some people who are using their computers to mine for currency. This means they are solving problems and when they complete a task, the miners receive currency. This can be sold for goods or services and is the only way that the currency available increases.
It is possible for you to use one of the currencies to pay for goods or services; it is beginning to become more popular. There are even cash machines available where you are able to buy and sell currency.
Is cryptocurrency secure
There are many arguments that are currently circulating in whether this form of money is secure. There have been a number of problems this year where exchanges have lost money due to computer hackers. The customer in a few of the cases, including the Mt Gox Exchange, which was the first company that had many problems at the beginning of the year, lost their money. This has resulted in the company going bankrupt and customers forced to sue to try to recoup some of the lost money.
The money is not backed by any government and this means that there is no safety net; if you hold any of the many different currencies and there is a problem, your money is lost.
Yet because the transactions are not holding any personal information, it is this reason that the process is more secure than using the traditional form of banking. Cryptocurrency trades are a lot cheaper than the charges issued from the banks around the world, saving customers money.
Those people who are actively involved in this market area are generous, with many charity drives that have helped and supported many different people and projects worldwide.
This shows the generosity of people coming together in a community spirit, they are able to come together and raise money for different events including raising money for clean water, sending the Jamaican Bobsleigh team to the Winter Olympics.
Option for the future
Therefore, if you haven’t as yet jumped on the cryptocurrency market, it is something that you might need to consider in the future. Shops and other services are taking the lead and accepting payment in these different forms of currency, reducing their banking costs and increasing revenue in these difficult economic times.
These currencies are here to stay; they offer another option that could prove a safer and cheaper option than the deal your current financial provider is offering. What are your thoughts on the cryptocurrency markets?