If You Do Not Know What Bitcoin is, Read This Please
If you are 1 of those people who do not know what Bitcoin and other cryptocurrencies are read this, as there is a keen international interest in this nascent digital asset.
Interest in digital currency has expanded over the past several years with industry participants telling people across the board to get interested too.
Now in this escalation there is certainly a type of person associated with cryptocurrencies, savvy nerds.
The Big A: Cryptocurrency as on chap sees it is “everything you don’t understand about money combined with everything you don’t understand about computers.”
Plus, understanding how to get and use money that does and exchange hands in the usual way when the average person has no idea what it is.
Cryptocurrency is a form of currency exchanged on a digital, peer-to-peer system, and it is transferred without traditional middlemen aka banks, the government, and other lenders.
When doing a transaction online and using a credit card it goes through a centralized server or a central provider. But when using cryptocurrency, there is no central provider; there is no one server or one authority over it.
It is you, your money, and if you are buying something the seller, no Mr. In-Beweens.
When it comes to cryptocurrency, and Bitcoin is what most people see as cryptocurrency. As Bitcoin is the most popular form of cryptocurrency aka, the standard, Ethereum is 2nd, and Ripple is 3rd.
The next Big Q: How do it get Bitcoin?
The next Big A: Some people “mine” it, a highly technical option that requires specialized computers with a lots of power, and downloading software to obtain a coin.
To get that coin, miners must solve a series of computational puzzles on a public network; the blockchain.
Once in your digital wallet you can spend it or trade it for other coins. But 1st you must have a Bitcoin or an Ethereum in order to obtain most other coins. And you do not have to be rich to buy digital currencies either.
Now then: How to make money from cryptocurrency and/or get fiat (paper) money back?
Buyers are given a digital address aka a wallet or bank account, and a private Key, aka password that enables them, and no one else, to access their crypto funds.
Remember that this money is an investment or a bet, the involves risk and speculation.
The value of Bitcoin changes constantly and Bitcoin values tanked in February, again in April, and dipped in May.
So if you bought 1 Bitcoin while the price was high at $19,783 in December 2017, then sold it Wednesday at market price of you lost a lot of money $6,666
Note: Bitcoin does nor function like a traditional investment, there is no broker or brokerage house in between you and your money
Currently, Bitcoin is trading at 6,668.30+357.87, or +5.67%, as of 7:27p BST, the market is open.