What Cryptocurrency Is & Isn’t

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Cryptocurrency as a whole is an industry that we continue to learn about. As providers of Bitcoin in Miami and beyond, we thought it would be useful to explain what exactly cryptocurrencies like Bitcoin, Litecoin, Ethereum and Bitcoin Cash are versus what they are not. This is also a great way to understand the exact applications that cryptocurrencies have to offer.

What Cryptocurrency Is:

  • A currency. This may seem obvious, but you can use cryptocurrency to buy and sell goods and services. Instead of cryptocurrencies existing in the real world, they only exist in binary code on computer ledgers.
  • Unprotected: There is not a governing body to help monitor the buying or selling of cryptocurrencies. Once a cryptocurrency has launched, there is no way to control it until it comes to an end on its own.

What Cryptocurrency Is Not:

  • An asset that produces revenue: Once you invest in cryptocurrency such as Bitcoin in Miami, there won’t be an income stream available in return. You will not be able to earn royalties on the technology in the future.
  • A commodity: Commodities are consumed and lead to a demand for more. From a consumption standpoint, there is not a demand for cryptocurrency, and it will not be destroyed by a transaction. Instead, it can be used over and over.
  • A store of value: Some people think that you will get the money that you invested in cryptocurrency back at some point. This may not be the way that it works because it is so volatile.

Do you have more questions about cryptocurrency? Feel free to contact our team at RockItCoin for more information!

Source: Forbes