With the technological advances of the day, it is no surprise that every area of our lives has been affected. Even some of the staple ways of life are now being challenged. Take currency for example.
The Way We Spend Cash Has Changed
Maybe you didn’t grow up in the generation that only used cash or checks. Many of us have been swiping bank or credit cards for a long time. I’m not sure how I would get gas in my car if it wasn’t for the convenience of a card. Who has time to go in and pay with cash?
A lot of people have turned to online shopping. Many people chose to pay bills through a website. These days, many businesses do not accept checks. Also, it’s pretty rare to find a shop that doesn’t take credit.
Currency Itself Has Been the Same Until Now
It’s safe to say the way we spend money has changed over the years. One thing that hasn’t changed, however, is currency itself.
Sure, you can argue that there are other ways of paying for services. Bartering still occurs. You can also redeem reward points in exchange for items. However, if money is the only acceptable form of payment, then you have one choice.
Whether you swipe a card, use cash, write a check, or pay online, it is all the same type of currency. It is government issued and backed by the bank.
Bitcoins Are Virtual Money
Bitcoin was created by Satoshi Nakamoto. There is much speculation about the creator. No one is quite certain if this is the name of a real person or group of people.
In 2009, Nakamoto released the idea of cryptocurrency. This form of money is based off of cryptography. Cryptography is the process of solving difficult math problems. In exchange for solving the problem, bitcoins are awarded.
How Cryptocurrency Works
Virtual money is a flat currency. It’s just like the cash system. We have all agreed that paper bills and coins issued by our government can be used to purchase items and services.
Businesses and individuals that use bitcoin, have agreed that it is an acceptable form of payment. There are a growing number of companies that accept it.
How One Gets Virtual Money
You can earn coins one of three ways. Those with the means, choose to mine for them. Individuals that do not have those capabilities have to purchase it with the flat currency of their country. Others provide services or products in exchange for it.
-Mining for Coins
Through the use of mining software, an individual or group can mine for coins. It takes brute force to accomplish the tasks to receive the reward.
Typically, it is awarded in blocks of 50. For this reason, most individuals do not go at it alone. Groups of people form together to accomplish the task and earn faster. You will then be awarded based off of your contribution to the pool.
Maybe it seems a little counterproductive, but you can purchase it with the flat currency of your country. Essentially, you are buying money. However, there are advantages to investing in it.
Just like buying gold bricks as a form of investment, buying cryptocurrency is also a form of investing. For one thing, if the banking systems fail, it won’t affect the value of your bitcoins. Other factors can cause the value to fluctuate, but government is not one of them.
-Exchanging Services and Products For Virtual Money
Not everyone has enough funds to buy in. Even more people do not have the tech know how of running mining software. For those with limited resources, offering your services or products is a great way to get in on this exchange.
This type of currency exchange will take time to catch on. While I know a lot of people are skeptical about bitcoin, it has its benefits. Over time, I think it will be a viable form of payment for many.