Cryptocurrency has been making waves in the news lately, and for a good reason. Like most people, you have probably heard of Bitcoin but aren't quite sure what it is. Is it an investment or digital gold?
What Is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and control the creation of new units. Cryptocurrencies are decentralized, not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
How Do You Mine Cryptocurrency?
Mining is how new cryptocurrency is created. Miners are rewarded with cryptocurrency for verifying and committing transactions to the blockchain. Mining requires specialized hardware and software.
Is Cryptocurrency Safe?
Cryptocurrencies are encrypted, so they are theoretically more secure than traditional currency. However, as with any investment, there is always risk involved. Cryptocurrencies are still a relatively new investment, so there is no guarantee that they will be successful in the long term.
Cryptocurrency is a new investment, and as such, it presents a high degree of risk. However, those who invest early stand to make the greatest profits if the currency succeeds.