How Cryptocurrencies Work?

How Cryptocurrencies Work?

How Cryptocurrencies Work?

Many of us have heard about this thing called Bitcoin, but not many of us know exactly what it is or how cryptocurrencies work.  I didn’t know what it is all about until I did research on it, reading lots of information on the internet.  If you want to know what cryptocurrency is or how they work, this video below is for you.

It is unimaginable that something digital that cannot be touch by our hand would worth that much money.  As of this moment when I am writing this post, Bitcoin is worth US $2505 and there are total of 16,420,000 number of coins exist.  That is a total value of $41 trillion dollars.

Bitcoin or cryptocurrency is still at it infancy, bitcoin is only about 7.5 years old.  More and more people are getting to know it and more people are using it.  I have never use it before and I have never own a bitcoin before, not many people do.

Many people predicted it will be the currency of the future as some of the countries in the world accepted it as a legal currency and have the same status as paper money.  At the moment, bitcoin still have some small issues to resolve to become the perfect money.  As a result, there are other cryptocurrencies which are invented and hope to replace bitcoin.  For example, Ethereum, LiteCoin, FeatherCoin, etc.

In December 2013, the governor of the Reserve Bank of Australia (RBA) indicated in an interview about bitcoin legality stating, “There would be nothing to stop people in this country deciding to transact in some other currency in a shop if they wanted to. There’s no law against that, so we do have competing currencies. Australia has officially confirmed it will treat bitcoin “just like money” on 1st July 2017 and it will no longer be subject to double taxation.  That means buying and selling bitcoin will no longer be subject to GST payment.

There are retailers in Australia who accept bitcoins and one of them is Subway.

I do like bitcoins, imagine one day you don’t have to carry your wallet.  Also, no one can steal your money.

 

2 thoughts on “How Cryptocurrencies Work?

  1. I’m glad I came across this post. I’ve been struggling to know how cryptocurrencies work. The video has really made it easier for me. I will have to decide on what next to do. Thanks a lot!

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