If you can connect yourself with the names of Bitcoin, Dogecoin, & Ethereum, the chances are that you’ve already acquainted yourself with the buzzword crypto. These digital coins have become increasingly popular over the last five years. And what started as a journey with the introduction of just one cryptocurrency (Bitcoin) at that time is an industry with 7,800+ different currencies today.
And if you’re a new investor who wants to get a piece of the crypto pie, the chances are that you need to know a bit more about the industry before getting into it. Therefore, continue reading as we explore different aspects of cryptocurrencies and understand what they are all about.
What Are Cryptocurrencies?
Cryptocurrencies are virtual or digital currencies decentralized in nature, meaning no bank or centralized authority has the power to regulate them. However, Blockchain technology for managing cryptocurrencies is identical to the conventional peer-to-peer system.
Besides blockchain and decentralization, the other defining characteristic of cryptocurrencies is cryptography. This is an encryption kind of technology that helps ensure the safety and security of crypto transactions.
The crypto fever started back in 2009 with the release of the very first cryptocurrency we now know as Bitcoin. Yet, it was not until a couple of years ago that cryptocurrencies genuinely began to garner mainstream attention.
Currently, more and more businesses and organizations are opening up to the idea of cryptocurrencies. This is because there are thousands of cryptocurrencies being traded across different platforms.
As a result, many have many fortunes, while many are losing fortunes. This makes it very important to understand cryptocurrencies before getting involved with them.
How Do Cryptocurrencies Work?
As mentioned earlier, cryptocurrencies run on a distributed network called the blockchain. This blockchain is used to record and update information about every single crypto transaction going on at any given time.
Cryptos are not something you can manufacture in a manufacturing plant. Instead, one needs to mine cryptocurrencies through a complex computerized process. This process is all about using extensive computing power to solve complex mathematical equations and earn cryptos.
Once you’ve mined them, these cryptos can be sold or traded on different crypto trading platforms.
Things That You Can Buy Using Cryptocurrencies?
Gone are the days when cryptos were taboo! Today, they’ve become an increasingly common transaction method throughout the globe. In fact, stats suggest that over 19% of businesses in the US have started accepting cryptos as a means of payment.
While it took some time, many prominent businesses are now accepting cryptocurrencies. This opened up a gateway of opportunities for crypto users to spend their fortune and derive some value from it. Some of the easiest ways you can spend your cryptocurrencies today include:
- Cars: You probably heard Tesla making the headlines with an announcement about them accepting cryptocurrencies. However, buying a Tesla with your cryptocurrencies is much easier said than done. There are so many complications and nuances you need to take care of that defeat the purpose of using cryptocurrencies.
But if you are living in the UK, you have the golden opportunity to buy a BMW in exchange for your cryptocurrencies. But it’s worth mentioning that you will need to go through a third-party site to complete the transaction successfully.
- Fast Food: Everybody shares a more or less universal love for fast food. Currently, numerous fast-food chains across different locations accept cryptocurrencies in exchange for their products.
One of the most well-known fast-food chains that accept cryptocurrencies is none other than Subway. They have been accepting cryptocurrencies for almost a decade. But the catch is this facility is only available at selected stores only.
Also, if you want something sweet, platforms like Coingate, provide you with Dunkin’ Donuts gift cards.
- Electronics: The next everyday item you can buy using your cryptocurrencies is electronics. A prominent store named Newegg allows you to purchase all sorts of electronics items using your cryptocurrencies.
Also, your choices are not just limited to software and laptops. You can get all sorts of electronics, starting from high-tech drones to gaming chairs. Newegg also allows you to buy dishwashers and even pressure washers using your cryptocurrencies.
- Television Services: You might find this hard to believe, but you can pay for your television services with cryptocurrencies. Many television satellite providers are now accepting cryptocurrencies in exchange for television services. It is further worth mentioning that you will need to use a particular platform called BitPay.
However, many businesses have opened up to crypto. Many are yet to start accepting them as a reliable means of payment.
Cryptocurrencies are no longer a thing of the future because the future is finally here. As time passes, cryptocurrencies will undoubtedly become more mainstream and garner more users. Therefore, start investing in cryptocurrencies before they become more expensive and capitalize on this amazing opportunity.