Those of us living in the 21st Century are bound to come across the terms cryptocurrency or Bitcoin at some point. As this new form of currency becomes more widespread, consumer knowledge is necessary. Though initially believed to be a fad, digital currencies are here to stay. For those interested in getting started with cryptocurrency, your local Boston coin dealers can be of assistance. Still, it is useful for all to know the basics of cryptocurrency before investing. Below are five essential facts regarding the currency:
There’s More to Cryptocurrency than Bitcoin
Cryptocurrency brings security and anonymity in the form of virtual currency. Unlike traditional forms of currency, cryptocurrency is not regulated by governments or banks. Cryptocurrency eliminates the middleman by delivering money from one account directly to another. The most well-known form of cryptocurrency is Bitcoin. Bitcoin is the oldest form of virtual currency. However, there are countless forms of cryptocurrency adding up to nearly $4 billion in value. Other types include Ethereum and Ripple. The experts at Boston Bullion can provide more information on several different forms of cryptocurrency and their properties.
Cryptocurrency if Versatile
Although it carries the same value as the current dollar, cryptocurrency is at its beginning stages. Locating a business that accepts cryptocurrency as a form of payment can pose a challenge. However, due to its growth, the years to come should open the doors to availability. Once cryptocurrency is accepted on a broader scale, the consumer can use it just as they do cash or credit.
Cryptocurrency and Blockchains Are Not the Same
Often confused, cryptocurrency with blockchains are two separate elements. While cryptocurrency is the digital form of currency itself, the blockchain is the tracking technology behind it. Transactions made with cryptocurrency are tracked and recorded by blockchains. Once the transaction is complete, it becomes a public record to avoid any potential accounting discrepancies.
Much like stocks, the value of bitcoin and other cryptocurrencies fluctuate. Again, like stocks you can purchase portions of bitcoin to get started. Cryptocurrencies are stored in exchange apps like Kraken or Coinbase. Once you become more familiar with the process, the option to purchase more is always available.
While at this point there is no concrete evidence that cryptocurrency will replace the dollar, there is a growing interest to suggest the popularity of the trend. Once invested in cryptocurrency, many choose to spend while others view it as an investment. To start your venture with cryptocurrency, contact your local Boston coin dealers. Backed with years of experience and recognition from the Wall Street Journal, Boston Bullion is your go-to for honest, reliable information. Visit them online or call today (781) 710-8419.