In the past decade, cryptocurrency has completely shaken up the financial industry. An increasing number of people are getting introduced to the concept, and getting involved in the subculture. However, the phenomenon is still relatively new. So, for anyone who might not be aware of what cryptocurrency is, how it works, and what you can use it for, this article will explain it all. Without further ado, let us get into this brief introduction to cryptocurrency.
What is Crypto?
Cryptocurrency is a digital, decentralized form of currency. Through the use of cryptography, programmers and developers encode cryptocurrency onto a blockchain. If you need more information on blockchains and how they work, read this article, as it provides a pretty good and simple explanation. Thanks to the blockchain technology, cryptocurrency is completely decentralized. Which means it does not fall under the purview of any government or central authority figure. In other words, it is an untraceable, unregulated form of currency.
Is Cryptocurrency Legal?
Laws around the world vary. In most places, cryptocurrency is legal, though unrecognized as a tender. However, there are nations that have illegalized the practice. Meaning owning and trading cryptocurrency might get you in legal trouble. So, if you are a resident of the following countries, you should be aware of the illegal status of cryptocurrency:
- China
- Egypt
- Iraq
- Morocco
- Nepal
- Qatar
- Algeria
- Bangladesh
- Tunisia
Outside of these countries, crypto is by and large legal. In fact, many mainstream, international businesses are beginning to embrace cryptocurrency as a viable tender. So, if you shop in places like Starbucks, Whole Foods, or Microsoft, you might be able to make crypto-based purchases.
Pros and Cons of Crypto
The major advantages of cryptocurrency are that it is decentralized and digital. The fact it is decentralized means that transactions are entirely anonymous and largely untraceable. So, if you want a little privacy when purchasing online, cryptocurrency is a great choice. That, coupled with the peer-to-peer system eliminates any middleman, and ensures you get the best bang for your buck.
However, crypto also comes with a pretty big con. Namely, the value of cryptocurrency is incredibly volatile. Prices of Bitcoin have gone up and down and back up, all in the same day. The one thing that remains true though, is that the prices do eventually climb back up. However, by then, you might have already gotten spooked and sold your stocks. In other words, the crypto market is not newbie friendly. So, if you are going to get involved, make sure you do a good amount of research.
The Uses of Crypto
Finally, we come to the final question. What exactly can people use crypto for? The major thing that people do with crypto is invest. In many ways the crypto market works like a stock market. People purchase stocks in cryptocurrency, and then resell them for a higher price. However, if that does not appeal to you, there are other ways to use cryptocurrency.
Obviously, you can use crypto as a currency. Many businesses worldwide now accept crypto-based payments. We already mentioned prominent ones like Whole Foods and Microsoft. However, there are quite a few local businesses in most European, Asian and African countries that have begun accepting Bitcoin as a viable currency.
Lastly, you can use cryptocurrency to play at a number of online casinos. Whether you want to play classics like poker, blackjack, slots, or roulette, or whether you want to try something a bit more unique, like pai gow or pachinko, there are a ton of crypto-based websites that accepts Bitcoin, Ether, Tether, and other cryptocurrencies. An excellent example is the following website: https://bitcasino.io/play/video-bingo/pachinko.
