What Is Cryptocurrency
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
Most cryptocurrencies are ‘decentralized networks’ based on blockchain technology. Blockchain is a system of recording information in a specific way that makes it extremely difficult to change or hack. Cryptocurrencies are still relatively free of government intervention or manipulation.
Cryptocurrencies are presented in the form of virtual ‘tokens’ and can be made to make secure payments online. There are various brands of cryptocurrency, varying in popularity and in value.
Is Cryptocurrency A Good Idea?
Uncertainty
There is still a lot of uncertainty around how exactly cryptocurrencies will be part of the future and how they can be used effectively by the general population. The currency can’t be collected and spent in the same ways that finances in the bank or the physical cash we have can. However, despite the uncertainty, people are reporting great returns from investing in online currencies. Despite the limited uses, these uses seem to be adequate for many people who engage with the system.
Lack of regulation
Now, cryptocurrencies are immune from government regulation. This is appealing to some people and daunting for others. The lack of regulation means that you can save cryptocurrency and spend it as you wish, paying minimal fees and avoiding questions regarding where your money is from and what you plan to do with it. This means that within certain areas, using cryptocurrency can be very beneficial and it can open up new opportunities that wouldn’t be otherwise available. However, it also means that the use of cryptocurrency is still significantly restricted because the number of organizations willing to engage in this method of exchange remains limited.
Lack of understanding
Investing in cryptocurrency is still relatively niche. Many of the general public struggle to fully understand how it all works and how they can get involved. There are various brands of cryptocurrency and the value of online currencies regularly fluctuate, sometimes experiencing spectacular peaks and troughs. Successfully trading crypto for profits requires a lot of time, experience and skill and instead many cryptocurrency owners are holding their coins for long term gain. However, there is also uncertainty associated with holding the virtual currencies for longer term gain because there is potential for new systems and legislation to be put in place in an attempt to regulate cryptocurrency and alter how it can be used.
What Can You Use CryptoCurrency For?
Household bills
Cryptocurrency can be used to pay your utility bills, such as your electric suppliers, as well as other household bills. You should research the companies that will allow you to use cryptocurrency as a form of payment because using these companies could help you to save your other finances for other purposes.
Investing
Many holders of cryptocurrency choose to use it for making online investments in innovative startups. The rising use of digital-token based capital is allowing anyone with an internet connection to become an investor and is also enabling small tech startups to massively increase the amount of starting capital they can occupy. Some startups that are operating with cryptocurrency are proving to be hugely successful and are showing rapid rates of growth.
Travel the world
With the increasing use of the technology, organizations in more and more industries are starting to accept forms of cryptocurrency as payment. Travel companies are allowing customers to travel the world using their cryptocurrency. Using cryptocurrency for large expenditures such as holidays and travel commitments can help to reduce spending from your regulated bank account, allowing you to allocate this money towards highly regulated procedures such as buying a property. Having various forms of currency can strengthen your financial position and open new doors for opportunity.
