What is cryptocurrency and how does it work?
For anyone who lives in Norfolk that likes to keep their finger on the tech pulse, digital cryptocurrencies may already be on their radar.
However, you may have only heard snippets about what they are and not be fully aware of how they work. If that is the case, don’t worry! As a relatively new form of currency, you are not alone. Many people in Norfolk and beyond will be asking the same questions and wanting to find out more about cryptocurrency.
What is cryptocurrency exactly?
Although it may sound a bit complicated, it really isn’t. In simple terms, cryptocurrency is a digital currency that allows you to make payments in a different way. In essence, it performs the same role as paper money but exists only in a digital form. It works by people mining the cryptocurrency in the form of coins via high-powered computers. Once that is done, they then securely store their coins in an e-wallet for later use or to sell on as a form of investment in the future.
The real advantage with cryptocurrency for many is that the Blockchain technology that all are built on makes them very secure with top level encryption. This makes transactions hard to fake or amend once made. Cryptocurrency operates differently to normal currency. A digital currency is not centrally controlled by any one bank or national government, which makes it immune from external interference.
Where can you use it?
Of course, mining or buying some popular cryptocurrencies like Bitcoin or Ethereum is fine but you need to be able to use them at some point. Although this is still in its infancy, here are a few ways you can use cryptocurrencies right now.
Sports and casino betting online
One sector that has really taken on digital currencies in a big way is online sports and casino betting. A crypto betting website will allow you to fund your account with Bitcoin and also play with it, too. As more online operators realise the advantages playing with digital currency brings to players, this is likely to be seen more and more in the future.
Trading on the financial markets
Another way to engage with digital currency is through the financial markets. There are specialist cryptocurrency broker sites that allow you sell and buy coins in order to make a profit.
Paying for goods
From online stores like ‘The Seedbox Company’ to physical stores in major UK locations, currencies like Bitcoin can also be used to pay for goods. The list of online and physical stores where this is available is growing all the time, so it may come to somewhere in Norfolk very soon.
Cryptocurrency use looks set to grow
Already there has been a big buzz around digital currencies in recent years. This looks set to grow further into the future as more places online and offline begin to accept it as a payment method. Of course, if you already live in Norfolk and have some Bitcoin’s squirreled away, this could well see them rise in value!