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The Telegraph – What is Bitcoin and what is it for?

The Bitcoin It is a virtual currency or a means of electronic exchange that is used to acquire products and services like any other currency. It consists of a cryptographic key that is associated with a virtual wallet, which discounts and receives payments.

However, this currency is decentralized. That is to say, there is no authority or control entity that is responsible for issuing and registering its movements, which in many countries, as in ours, detracts from its validity and value.

In fact, the Central Bank of Ecuador indicated in a statement that these Cryptocurrencies are not an authorized means of payment in the country and do not have support, since they sustain their value in speculation. They are not controlled, supervised or regulated by any entity in the country. Therefore, “they represent a financial risk.”

How are cryptocurrencies used? First, you must have a system to store and operate bitcoin, called an electronic wallet, which contains pairs of cryptographic keys. It is a public key and a private key.

Then, the wallets can be used from computers or mobile devices as long as the application that has bitcoin is available to carry out the operations.

Finally, you can make transactions with other people who have virtual wallets. There are even cases of people who already carry out commercial exchanges with payments of these cryptocurrencies.

But, those who use this system or any other cryptocurrency, must be careful with the investments they make, so as not to fall into the traps of illegally raising money.

Despite these warnings, bitcoin has historically held upward, according to its advocates, in four-year cycles. The last of these cycles peaked in December 2017, when it reached $ 19,600. A year later it bottomed out at $ 3,000. That confirms that it is also a highly volatile currency.

In this 2021, the fourth year of the next cycle is fulfilled and that explains, according to those who invest in this measure, a striking rise that has made it the most profitable investment: it reached $ 64,800 in April.

How do you get a Bitcoin?

There are three great ways:

  • You can buy a bitcoin (or a portion of the currency) using money. Many people download applications on their phones that allow them to buy bitcoin using the funds in their bank account.
  • You can sell things and allow people to pay you with bitcoins.
  • Or you can create them through a process known as bitcoin mining. Those who engage in these activities are called miners.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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