Monthly archives "January"

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THE GOLD STANDARD FOR DIGITAL CURRENCIES

Bitcoin can be known as the gold standard for any digital currency worldwide. Bitcoin uses the peer-to-peer technology for fast payment.  The first digital currency ever created was bitcoin in the year 2009 by a mysterious man or woman called Satoshi Nakamoto, whose true individuality has not been verified till today.

HOW IS BITCOIN MINED

 bitcoin mining is the process of releasing bitcoins into circulation, like the central bank releases fund to a particular nation.  In essence, it involves solving a computational difficult puzzle to discover a new block, which is added to the block chain. After which a remuneration is giving in the form of bitcoins. As more and more bitcoin is reward, the difficulty of the mining process increases and so bitcoin mined reduces every four years. Mining of bitcoin began back in 2009 with difficulty level of 1.0 as at April 2017 the difficulty level had increase to 4.24 billion.

BITCOIN INVESTMENT

Many people believe Bitcoin to be the future of currency, and those supporting it say it is a much faster way of payment across the world. Actually its exchange rate against a dollar entices likely traders and investors interested in playing with money.  One of the most relevant reasons backing the growth of bitcoin is the flexibility and alternative to physical currency amongst other commodities like gold.

HOW TO EARN BITCOIN

Bitcoins are accepted in almost every business for either products sold or services render.  A business on the internet can easily accept bitcoin as a means of payment by adding it to the payment option and many customers may take it up. Using bitcoin as a means of payment on an online store works like a credit card or PayPal. Bitcoin payment requires a merchant tool such as Bitpay or Coinbase.

Gambling: Some casinos today cater for bitcoin aficionados making it possible to gamble with bitcoins with option like jackpot, lotteries and other games.

Working for Bitcoins:  if you are unemployed or self-employed at the moment you can earn yourself some bitcoin by taking up jobs that pay in bitcoin. There are so many websites which are dedicated to paying in bitcoins and other digital currency.  Such as:

  • XBTfreelancer: Employers currently posing include coinbase with other hosts of blogging, development, marketing etc. Employers pay freelancers using bitcoin as a means of payment.
  • Coinality: Mainly for freelance developers. Coinality is popularly known as bitcoin freelance market place.
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Profit Payment: bitcoins can also be earned by lending them out to anyone searching for bitcoin and been repaid in the currency. You can lend in three different ways

  • Direct lending to someone
  • Depositing bitcoin in a virtual bank that offers a certain interest rate
  • Through websites that accept peer-to-peer transactions.

Some of these websites that facilitates lending include BitLendingClub, Bitbon and BTCjam.

The Concept Of Cryptocurrency

Cryptocurrencies are uniquely designated for its online security and anonymity which physical currencies lack in most cases. The word ‘cryptocurrency’ was borne out of the word term cryptography, a term that describes the code used by the internet to track purchases and transfers.

The history of cryptography itself began during the Second World War as there was a desire to create security of communication. In this digital era, it has taken its own different shape, making use of computer science and maths theory to become a means of securing information, communication and money on the internet. While the preconception of cryptocurrency began in 2008 by Satoshi Nakamoto and was finally implemented in 2009 as bitcoin, it continued to encounter a constant rise and fall in value as compared to the US Dollars. Although it didn’t gain an initial credit or a wide base investors but it went into a gradual but steady climb into gaining popularity and was harnessed by investors and its customer base skyrocketed in early 2011.

The first ever transaction with bitcoin was valued at 10,000 bitcoin which was used to make a purchase of two pizzas. It was after a frequent rise and fall in the value of bitcoin that it rose gradually to over $1000 in august, and it continued to rise up till November 2017 and has settled at a value of over $7000, causing a stir in the currency market.

The cryptocurrency is one very huge aspect of digitization and in fact a breakthrough in the world’s economy. The major advantages of the cryptocurrencies apart from primarily being a medium of exchange, its other secondary uses are to secure transactions, control the creation of other units and verification of assets transfer.

Cryptocurrencies can be traded as well on various platforms such as coinbase, and volumes can be offered through bank transfers or credit cards.