Large computer equipment controlled by powerful economic groups, known as whales, are the main producers. “There are real computer farms dedicated to this work,” acknowledges Jesús Pérez, founder of Crypto Plaza, a center that functions as an ecosystem of entrepreneurs on encryption and finance, and director of the consulting firm Digital Assets Institute.
Another safer and easier way is to do it through a purchase platform or a financial intermediary. They can also be purchased at ATMs created exclusively for it. Before doing so, it is convenient to read the conditions since each entity charges different commissions. Once purchased, they are assigned a unique and personal password, which should be kept safe.
What is the value of the most popular cryptocurrency: bitcoin?
It does not have a single or stable value since it fluctuates according to supply and demand. For example, at the beginning of 2020, bitcoin was trading at just over $ 7,000 (5,760 euros), and at the beginning of 2021, it marked a historical record of $ 42,000 (34,500 euros), while, in the week of January 18, the bitcoin had lost up to 30% of its value reaching a price of just under $ 29,000 are (24,000 euros). On Friday 22, however, he was leading a recovery to $ 31,000 (25,500 euros). To know the value of each cryptocurrency at all times, it is advisable to consult specialized pages.
Can I invest in cryptocurrencies?
Yes, but it is a risky and speculative market where it is possible to win and lose large amounts in a short time. The most profitable and least dangerous are, according to experts, bitcoin and ethereum.
Bitcoin is currently the seventh most capitalized asset globally, around 700,000 million dollars (almost 575,000 million euros), behind Amazon or Google. It is important to keep in mind the saying circulating on the stock market: past returns do not guarantee future returns.
Where are cryptocurrencies kept?
They are stored in so-called purses (wallets in English) that have to be created expressly, of which, according to Statista, there are about 64 million worldwide. It is software that can be stored on a computer, mobile, or any other digital device, but the most comfortable way is to leave it in custody in a cryptocurrency bank.
Is there a regulation for cryptocurrencies?
No, but since 2015 the European Union (EU) has considered bitcoin and other cryptocurrencies as a form of payment, with the same validity as the euro. Despite this, Christine Lagarde, the European Central Bank (ECB) president, shows her reluctance and has declared that regulation of bitcoin is necessary because it is “a very speculative asset.” The ECB has announced the creation of a digital euro, an electronic form of money that Europeans could use to make their daily payments complement to cash. It would not be a new currency or a cryptocurrency, but a digital euro would have the same value as a cash euro.
The use of cash in Colombia is very common. However, the search for security and transparency when handling money has made users use alternatives such as paying online or debit and credit cards.
However, lately, virtual currencies have become very common, with Bitcoins being a benchmark for these practices.
But… What is Bitcoin?
Bitcoin is a virtual currency that appeared in 2009, and that is intangible; that is to say; it cannot be touched or felt like the bill known today. As with the money you have in the bank, it is possible to increase or decrease the number of bitcoins, depending on expenses and income; another peculiarity of this product is that although payments can be made, it cannot be physically available, such as if it is done when withdrawing money from the ATM.
Five keys will help you understand the use of Bitcoins a little better.
How much does a Bitcoin cost?
It all depends on your requirement; as with other currencies, bitcoin is valued according to its supply and demand in the market. The currency's popularity with users has increased its value steadily; since bitcoin was created, its price has multiplied about 50 times more.
Several calculators calculate currencies in real-time; an important detail to consider is that Bitcoin has a limit of 21 million currencies, which is expected to reach in 2041. As reported by BBVA.
Who regulates bitcoin?
Any financial authority does not regulate Bitcoin, so its transactions are irrevocable. Users have no one to claim in case of fraud, theft, loss, or change in value.
By not being monitored, the transactions are free of any commission or taxes.
How are Bitcoins acquired?
To access a Bitcoin account, you only need to download one of the applications available for any operating system. A type of “wallet” or “purse” will be created to which you will only have access with a password for personal use with which you can carry out transactional operations.
How to get bitcoins?
To get coins of this type, there are 3 possibilities:
The simplest ways are to enter one of the Bitcoin stores such as "Bitpoint.com" and exchange conventional money such as pesos, dollars, or euros for these currencies. The exchange of goods between users is also a simple way to buy and sell through bitcoins. The strangest of all the ways to get a Bitcoin is "Mining," which involves solving very complex mathematical problems from the computer in exchange for winning bitcoins.
Characteristics of a bitcoin.
Privacy. Bitcoin is a currency that, being of a person-to-person type, no one has access to the information of the purchase or any other transaction. And since there is no need to leave any personal data, the risk of falling into the hands of cybercriminals is reduced.
Speed. I was considering that the money is sent online and without intermediaries; the maximum that the transaction can take is 10 minutes.
Serves all over the world. Performing transactions with this currency from anywhere globally is possible, even in countries where it is not possible to have Paypal accounts. Also, the time or holidays are not considered, and there are no limits; users are free to manage their money.
What happens when bitcoins are lost?
When the bitcoins are lost from the wallet or purse, they will always be in the blockchain like other currencies. However, it will be inactive money since there is no possibility that someone will find the private keys to be used.
The use of this type of currency is free. However, you must bear in mind that negative factors can affect your economy, as with any other monetary resource. As there is no regulatory entity, there is no possibility that they will respond to you if you suffer a mishap with your wallet.
That is why there is nothing better than having backing or support; remember that the financial sector offers you different services and products capable of getting you out of trouble and helping to improve your quality of life.