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Nowadays, you may be coming across the word cryptocurrency a lot. No matter where you go, be it in your friend circle, your favorite websites, YouTube, news outlets. Everyone is talking about it. Cryptocurrency is just like its name implies, a special kind of non-physical currency, kind of like credits in a video game, except you can use it to purchase things in the real world. A few years ago, no one knew about it, but now it appears it has seemingly exploded. The main reason for this explosion is that many people now see cryptocurrency becoming rich quickly as its total value was $1.3 trillion in 2011, so the potential is there.
There are two main types of crypto, Tokens and coins. The coins such as the E-Yuan by Non fungible tokens are produced by computations of complex mathematical problems done by any computer. The number of coins that can exist is limited by the company which created them. e.g., the max number of coins of Bitcoin is 21 million, which ensures that the currencies do not devalue due to too many of them. Tokens are a type of encryption. Unlike bitcoins is given out through an initial coin offering system, like a stock market system.
Currently, crypto is regulated by the Commodity Futures Trading Commission (CFTC), U.S. Securities and Exchange Commission (SEC), an organization responsible for protecting investors and ensuring that the market operates appropriately; the IRS makes cryptocurrency subject to income or capital gains tax. Beyond that, there is not that much regulation of the cryptocurrency as it is decentralized, a double-edged sword. Due to decentralization, you can’t reverse transactions, and users have anonymity, lack of inflation, and no paperwork. Major issues due to this include volatility, unpredictability, scalability and sometimes inability to keep up with demand. However, crypt regulations need in the crypto ad sphere, also. But until then, major ad platforms (like Facebook & Google) will block you from running crypto ads. In this case, you need to head to a crypto ad network, like Coinzilla.
What Gives it value
You may be wondering, cryptocurrency is just a bunch of online tokens, so how do they get their value? Well, what gives paper money its value? The answer is its utility. Every currency is usable if everyone agrees to be a symbol of value or keep its value for a long time. In the beginning, the paper money was tied to the gold reserves, but later, many countries left the gold standard, so their currency became a fiat currency. When a currency is not backed by anything but the faith that everyone will accept that currency, it becomes fiat. The same is the case with cryptocurrency.
How People Earn it
There are numerous ways to earn crypto, but the most popular and quick one is mine. In mining, people use their computers to solve complex mathematical problems, increasing the number of coins in circulation. Initially, there were not that many coins, mining was cheap and quick, but now there are lots of coins in circulation, due to which the complexity of problems has increased. Mining has now become time-consuming and expensive and so no longer as beneficial as before. It is still helpful but nowhere near as much as before. Another popular way is via faucets; these are apps that reward you with a small cryptocurrency for doing tasks like viewing ads.
Risks involved with cryptocurrency
Many people have expressed their fears over the different kinds of cryptocurrency. Due to the decentralization and anonymity of the crypto, it is used in any illegal activities, leading many countries like China to ban it effectively. Many countries have all or most kinds of cryptocurrency prohibited. As crypto is entirely digital, it is susceptible to hacking, errors or glitches; due to many massive hacking attacks, people have lost millions in cryptocurrency. It is pretty fluid and unpredictable; the value can increase or decrease by thousands or tens of thousands of dollars within a few moments. So crypto can be a very dangerous beast entirely, but still, it keeps growing at an unprecedented rate.
Crypto is a new way for people to earn money at home. Do trade safely, without much paperwork and with ease. Crypto, just like all new things, was considered by many to be some dark web evil thing that people only used to do illegal activities and had no use beyond that. But now, as time passed and people grew an understanding of it, it has come a long way with different types of it being launched every day, such as dogecoin. Many international companies and small businesses use it as a primary way of dealing with money. It has millions of users marking to everyone that it is here to stay.
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