About Cryptocurrency

Bitcoin isn’t a product, and it isn’t even a company, it’s a thing, an entity so to speak.

So can factors that were used to attribute a former bubble be used on a cryptocurrency?

I really don’t think it’s that simple.

Bitcoin was created by a person or group known as Satoshi Nakamoto and it is what’s known as a cryptocurrency, it’s digital money and is the first peer-to-peer payment network that is decentralised.

To be decentralised means that there is no central authority to regulate the entity.

A key factor that has attributed to bitcoins success is the fact that it’s totally open.

It uses a technology called blockchain, and a lot of people have been asking the question « What is blockchain? » So allow me to elaborate a bit.

The blockchain network is an open ledger that displays every single transaction that is made, and is incorruptible because there is no ‘one’ location where all the records are kept.

These are called altcoins as a generalized name. The prices of each are regulated by the supply of the specific cryptocurrency and the demand that the market has for that currency.

The way cryptocurrency is brought into existence is quite fascinating. Unlike gold, which has to be mined from the ground, cryptocurrency is merely an entry in a virtual ledger which is stored in various computers around the world.

These entries have to be ‘mined’ using mathematical algorithms. Individual users or, more likely, a group of users run computational analysis to find particular series of data, called blocks.

The ‘miners’ find data that produces an exact pattern to the cryptographic algorithm.

At that point, it’s applied to the series, and they’ve found a block.

After an equivalent data series on the block matches up with the algorithm, the block of data has been unencrypted.

The miner gets a reward of a specific amount of cryptocurrency.

Under federal tax law, no cash needs to change hands in order for a taxable transaction to occur.

Barter and other non-cash exchanges are still fully taxable.

There is no reason that transactions involving bitcoins would be treated differently.

Outside of the criminal element, Bitcoin’s main devotees are speculators, who have no intention of using bitcoins to buy anything.

These investors are convinced that the limited supply of bitcoins will force their value to follow a continual upward trajectory.

Bitcoin has indeed seen some significant spikes in value.

But it has also experienced major losses, including an 80 percent decline over 24 hours in April.

At the start of this month, bitcoins were down to around $90, from a high of $266 before the April crash.

The Winklevosses would make Bitcoin investing easier by allowing smaller-scale investors to profit, or lose, as the case may be, without the hassle of actually buying and storing the electronic coins.

Despite claims of security, Bitcoin storage has proved problematic.

The strengths of the exchange are the user experience, which is very innovative and easy to use, the amount and quality of the traded crypto currencies (Binance has a good model for selection of the listed cryptos).

Binance management have a strong vision and team, which makes it a potential candidate to top the list for the next few years.

Liquid – Liquid is web application launched in 2018 replacing the exchange Qryptos and build on the Quoinex (Quoine Exchange), which is a Japanese exchange founded in 2014 by Quoine Pte. Ltd.

It is a fiat-crypto exchange and follows the business model of Coinbase/GDAX and OKCoin/OKEX: one deals with fiat and the other one with crypto trading.

It is one of the first exchanges, regulated by the Japanese authorities. This provides transparency and confidence of the users.

Exmo – EXMO is a European crypto currency exchange, with focus in Eastern Europe, that allows users to trade the most popular crypto currencies.

It was founded in 2013.

You can deposit funds into your account using a number of payment methods and the platform offers support for five fiat currencies including Russian, Polish and Ukrainian national currencies and most recently EXMO launched a subsidiary also in Turkey.

If you are a beginner and want to have a tailor-made exchange selection, which best fits your profile, check out the the g8pool crypto exchanges list.



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