What is cryptocurrency? By it’s name it is considered encrypted money. Money or currency is an item society agrees is worth trading for a product or service. Have a $1.09 and want a cup of coffee? Let’s trade. Currency started as a stone in caveman days progressed to gold in your great great great grandfathers day and into paper bills in your great grandfathers day.
Today we trade paper bills or even plastic credit cards for the things we want. The limit and value are regulated by the country and government that you claim residency. Rarely are paper transactions done anymore. Cash usage in the U.S. represented 13.1 percent of GDP according to payments.com March 2017 article.
Tap a few screens on your mobile phone and within minutes funds can be delivered across the world. Today those transfers are likely initiated in one currency and deposited then exchanged for another. The mere fact that funds can be deducted from your account and deposited into another account in minutes is amazing.
More amazing is the opportunity to do so at a universal value. Enter tomorrow’s currency opportunity, virtual money or digital funds better known as cryptocurrency. People are asking what is cryptocurrency? For the sake of introduction, let’s discuss the leading player. Bitcoin.
Welcome to Bitcoin
Bitcoin is by far the largest cryptocurrency. It is the standard others are looking to emulate and compete with. Like any currency, Bitcoin can be traded “virtually” for many goods and services but it has only been around for approximately 9 years. The creator of Bitcoin is “unknown” but it is suggested it was Satoshi Nakamoto.
The depths and structure to securely do this in the “cloud” is the big concern. Bitcoin is secured by BLOCKCHAIN. A super encrypted way to create trade and track your money.
The value of a single Bitcoin has skyrocketed over the past few years from $500.00 to $15,000. In order to buy a Bitcoin, you need a virtual wallet and some cash to get started. You could also accept Bitcoin as a form of payment if your a business.
So what is cryptocurrency, Bitcoin, worth if you invest $500.00? It would garner you 0.02831306 of a single coin. If Bitcoin doubled in value/price you would still have the same percentage share but it would be worth $1,000. There are calculators online that will help you determine what your Bitcoin purchases equal.
Should I buy Bitcoin? I recommend you find a comfortable way to learn about the offering with out any major exposure. Determine your tolerance level for loss and go with that. I also suggest that if you have an opportunity, accept some payments in the form of cryptocurrency for goods or services.
I have added the links and shortcuts for your research ease. For a more detailed conversation please reach out to me. Email Derick
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