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What is Cryptocurrency?

Frequently Asked Questions About Cryptocurrency

What is Cryptocurrency?

Cryptocurrency is a consensus network that allows a standard agreement to be made about the current state of the distributed ledger. This is replicated, synchronized and shared digital data that is geographically spread across multiple websites, and there is no central administrator. The end goal is to enable a new system of payment and fully digital funds. Cryptocurrency is the first peer-to-peer network for payment, meaning a network in which computers operated by people can share resources without relying on a central server. In this system, intermediaries overseeing the money do not exist. From your perspective, Cryptocurrency is digital cash for the internet. It can also be viewed as the preeminent triple bookkeeping system globally.

How does this work?

From the user's perspective, Cryptocurrency is a phone app or computer-based program that offers an individual Cryptocurrency wallet and allows a person to receive or send cryptocurrencies with them. This is how Cryptocurrency works for most of you.

Probing deeper, the network is sharing the blockchain. This contains each transaction that has ever been processed, which allows the user to verify whether the transaction is valid. Furthermore, the trades are safeguarded by electronic signatures matching to the cryptocurrency sending addresses, allowing all users to completely control sending cryptocurrencies without the help of a third party. In addition, anyone can mine cryptocurrency.

Do real people use Cryptocurrency?

Yes. There is an ever-expanding list of people and companies choosing to use Cryptocurrency. This includes businesses like:

  • Restaurants
  • Apartments
  • Law offices
  • Web-based businesses

Cryptocurrencys is a new sensation, but it is growing quickly.

What advantages does Cryptocurrency present?

  • Payment freedom
  • You decide the fees
  • Few risks to companies who accept Cryptocurrency
  • People who use Cryptocurrency are in total control of their transactions
  • All information on the money supply is available on the blockchain

Will I be able to make money?

Cryptocurrency is characterized by innovation, and business opportunities exist that include their own risk. Putting time and money into anything tied to Cryptocurrency requires an entrepreneurial spirit. It is up to each participant to evaluate their risks when speculating, mining, or running a new business.

Is it legal to send or receive Cryptocurrency?

Cryptocurrency is legal in most jurisdictions. However, in Russia and Argentina, foreign currencies are severely restricted. In addition, other jurisdictions may limit the licensing of Cryptocurrency exchanges.

Regulators worldwide are also making strides to provide people and companies with simple rules on adding this new form of technology to the regulated financial system. For example, FinCEN, a bureau within the US Treasury Department, issued some guidance on describing specific activities involving Cryptocurrency.

Is Cryptocurrency easily regulated?

The protocol involved cannot be adopted without the agreement of nearly all users of the currency, who all choose what software they use. Therefore, an attempt to assign local authorities rights in the worldwide Cryptocurrency network rules is not a realistic possibility in the current marketplace.

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