Best Guide For Cryptocurrency Enthusiasts
Cryptocurrencies are interesting but people are not knowledgeable enough to indulge into it.
What begginers have in mind when it comes to cryptocurrency is, unreliable. Yes, most people have high doubts when it comes to cryptocurrencies. This is because cryptocurrencies are not mentioned or not introduced at school.
But how can we spread awareness and help people know about this?
Below, you’ll find the best guide towards understanding cryptocurrencies.
What are cryptocurrencies?
Also called digital or virtual currencies, they’re a type of currency that exists purely as code. They’re not controlled by a central authority, like a bank, so transactions are neither protected nor at risk from interference in this way.
What cryptocurrencies are out there?
Although there are 700 cryptocurrencies around today, only 12 or 13 are established enough to have a market capitalisation value – or total share value – over $10 million.
By far the most well-known is Bitcoin, the virtual currency and payment system that uses code to complete transactions.
The second biggest, and the only other cryptocurrency system being taken seriously at the moment, is Ethereum. It’s a little like the Bitcoin network, except it’s mainly used for building apps online, rather than for making payments. It’s fuelled by its own cryptocurrency, called Ether, which is what the people accessing Ethereum’s resources pay to the platform for carrying out requests.
According to COO of payment provider Remitsy, Neil Woodfine, most of the other cryptocurrencies don’t really have a following. Yet.
Shopping with cryptocurrencies
If you’re looking to make a purchase, some 100,000 global merchants, including Microsoft and Expedia, currently accept Bitcoin, although the UK’s largest online retailer, Amazon, still doesn’t accept any cryptocurrencies. Using gift cards bought with cryptocurrency is one way to shop through a retailer that doesn’t currently transact in cryptocurrencies. And even Amazon will accept gift cards.
However, you’re unlikely to find many high-street retailers directly accepting cryptocurrency just yet, as there’s no real incentive for them to. Cryptocurrencies aren’t cut out to manage the volume of transactions that traditional payment technologies like Visa, for example, do, and they’re pretty well adept at that already.
But in the digital world, things change quickly and Bitcoin developers are already looking at moving small retail transactions away from the cryptocurrency’s main structure.
If you can’t wait for that to happen, there are ways to get around paying with cryptocurrencies on the high street. As Woodfine points out, some Bitcoin start-ups offer Bitcoin-funded pre-paid debit cards, where you purchase your limit first, before transacting.
Making payments abroad
While cryptocurrencies may have to wait to crack the high street completely, they’re already offering a big advantage to people making international payments. Since they’re completely digital, cryptocurrency payments can be made simply and instantly, often without incurring costly handling fees.
“For example, I can now make a Bitcoin payment to anyone in the world via iMessage on my iPhone,” says Woodfine. “They receive it in seconds, it just works. Try doing that with some dollars in your bank account.”