Daily Archives: December 24, 2017

Understanding the Pros and Cons of Bitcoin

 

Over the past few months, Bitcoin along with other types of cryptocurrency have dominated news headlines. But last week it stirred mixed reactions when Bitcoin passed the $11,000 threshold.

What’s bitcoin?

Bitcoin is a form of digital currency that’s not linked to any banking institution or government administration and allows a user to spend his/her money incognito. These coins are produced by users who actually “mine” them when they lend computing power to validate transactions made by other users. In return, they receive more bitcoins. You can store your Bitcoins in a digital wallet that’s accessible using your smartphone or computer.

One can also buy and sell bitcoins in exchange for U.S. dollars as well as other currencies. They have significantly fluctuated in value over time.

How it works

Think of Bitcoins as your personal debit card— which is a good way to electronically pay for items and services whether on- or offline. Now, what if your debit card strictly stored its unique form of sophistically encrypted digital currency? That’s exactly how Bitcoin works.…