Exchanging of bitcoins for dollars is becoming common and this article will shade light to the frequently asked questions regarding the bitcoins.
What’s are Bitcoins?
Bitcoins refer to both a payment network and currency. Unlike other payment networks, it is decentralized. It relies on redeeming it with different currencies and there is no assurance that its value will be fixed. Bitcoins are not physical coins as they are depicted, you cannot withdraw them directly, but you can trade them for physical currency.
Why Are Bitcoins so valuable?
Since its inception, the value of Bitcoins has not been that consistent. Its amount depends on the traffic created by the internet users. When more people trade using bitcoins, it attracts the attention of media which even advertises it more. As a result, more people join its use, and that’s how its value keeps going high.
Why Would I Want to Use Bitcoins?
Honestly speaking if you are a resident of America or other wealthy western countries you might find the use of bitcoins irrelevant. The platform has a fixed charged on its users also trading it with currencies attracts charges. However, it is fastest and convenient means of international money transfer.
How comes Bitcoins are worth $50 billion yet with few Applications?
Bitcoins are still new, and most people see it’s potential. The charges are constant regardless of the amount of transaction. Also, it is a reserve currency of a broader cryptocurrency economy. Likewise, Bitcoins could become a store of value to be used in future.
How Do I Get Some?
It is a risk investing in Bitcoins as they can be hacked or even disappear from the web and it fluctuates over time. However, considering the rewards, you can join the platform by creating an account at coin exchange site. Here you deposit a few dollars and purchase the bitcoins.
How Do I Cash Out?
It is simple, just execute a transaction to convert the bitcoins back to dollars and then withdraw your cash at a local bank. However, this operation might take some time, or you may not convert all the bitcoins due to security issues.
Is It True That Bitcoins Waste A Ton Of Energy?
That is right as Bitcoins have to maintain their shared transaction ledger through the mining process that consumes a lot of electric power. The consumption increases as the value of the bitcoins increases. However, the problem will solve itself with time.