Paul McCarthy – Global Ambassador, Netleaders & Dascoin
Understanding Digital Currencies A Little Better
The internet has been splitting at the seams thanks to a little something called cryptocurrency. And chances are you’ve heard about them several times by now. But what are they exactly and why should they be of any interest to you?
In this article, you are going to learn a little more about this mysterious online money channel. More specifically, you’ll understand digital currencies a little better when you reach the end.
Where It All Started
It’s important to point out that digital or cryptocurrency is an umbrella term. And it basically means you are using money that is created and used online. The first cryptocurrency to make waves is called Bitcoin, and it was mainly used on Darknet. This is where all the illegal stuff happens, and by using a digital currency like Bitcoin, the transactions can’t be traced.
After a while, the trend to use digital currency started spreading across the internet, giving consumers full privacy of what they buy and where they do it.
Paul McCarthy & Mateusz Guzda – Global Ambassadors
What Is A Digital Currency?
A digital currency doesn’t physically exist. Instead, it’s a highly complex code, which is created via “mining”. As you are reading this, more and more digital currencies join the market, and they only gain value when people start giving it value. That’s right, a digital currency is strictly dependant on the value people choose to give it.
So, to break it down, a digital currency is an encrypted code that can’t be traced to the owner. In fact, the only way to prove you own a digital token is via a code/number you get. And once you buy something, you simply provide the code/number and the ownership switches. Plus, the new owner gets a new code for the token.
Life As A Cryptocurrency Entrepreneur – Paul McCarthy
Another reason why digital currencies are so popular is based on the blockchain technology that is used. A blockchain acts like a central ledger four all the transactions. And according to experts, they can’t be hacked given the complexity of the source code.
Lastly, a digital currency will most likely come with a limit as to how many tokens can be mined. This is information the developer of the currency makes public, and once the limit is out there, it’s probably not going to change.
Why Are People Going Crazy For Digital Currencies?
Seeing as you are dealing with nothing more than a complex source code, it’s understandable that governments can’t control or monitor transactions. This creates a world of problems from a government point of view, and they will probably never stop trying to find a solution.
But at the moment, digital currency owners are holding on to their privacy, thanks to some of the major online retailers getting on the act. More specifically, they are allowing users to pay with specific digital currencies, like Bitcoin.
However, there are some who use digital currency four investment purposes. In other words, they buy them when their value is fairly low. Then they wait until the value grows before selling them off. And while this sounds like a great idea, you are still taking a risk.