You could end up spending more money on electricity for your computer than the Bitcoin would be worth. It’s unregulated, volatile and can’t be used as widely as traditional currencies. Also, the reward for mining a Bitcoin halves every four years. At the current trajectory, it’s predicted the last Bitcoin will be mined by 2140 unless current protocols are changed. They use high-end computer hardware to crack increasingly complex, mathematical verification problems generated by Bitcoin’s source code – its computing DNA. In other words, each party to the transaction trusts that the asset being exchanged has inherent value.

This does not mean it is genuine – criminals will go to great lengths to cover up the scam. No legitimate person or organisation will pressure you into making an investment or to commit to something on the spot. You may have heard about the cryptocurrency scam linked to the popular Netflix show, Squid Game, in 2021. Bitcoin is the original and most popular kind of cryptocurrency but there are other highly traded types like What is Bitcoin Dogecoin, Ethereum and Litecoin. Bitcoin first appeared in 2009 and was invented by someone who went by the name of Satoshi Nakamoto but has never been identified. Have a look at our article to see where cryptocurrency came from, how it works and how to avoid cryptocurrency scams. Why can you take it to a shop and expect the owner to accept it – or an electronic version of it – in exchange for a couple of pints of milk?

Is cryptocurrency a good investment?

Bitcoin is a digital currency, also known as a cryptocurrency. It was invented in 2008 by an anonymous person or group named Satoshi Nakamoto. Bitcoin payments aren’t exactly mainstream, but big names like Microsoft, Express VPN and Wikipedia take Bitcoin payments.

In other words, bitcoin is a form of money that does not depend on the solvency or trustworthiness of any central authority at all. Since 2010, almost a dozen hacks of cryptocurrency exchanges have occurred. Relatively speaking, however, conventional banking and financial institutions have lost billions of dollars to cybercriminals during this same timeframe. Programmers and cryptocurrency communities are working hard to identify and mend the vulnerabilities in their blockchain networks. If bitcoin becomes an acceptable currency for real-world vendors, government central banks may actually find their role upstaged by sophisticated computer algorithms.

Bitcoin is a decentralised currency

As more and more people started using it and recognising its potential, the value of bitcoin gradually increased. Today, it is worth much more ($28,305 in May 2022), and people worldwide use it for a variety of purposes. Bitcoin’s decentralised nature also allows for near-instantaneous transactions, as there is no need to go through a bank or other third party. This benefit makes Bitcoin an ideal currency for online purchases, as there is no risk of chargebacks or fraud. Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual. You transfer Bitcoins from your digital wallet to someone else’s using an app or website and the person’s unique Bitcoin address. The decentralised nature of blockchain means there’s no need for intermediaries such as a bank or payment processor.

• At AQRU, we firmly believe that everyone should have the opportunity to benefit from high yield returns.
• Because each equation is unique, once it is solved, the network knows that the transaction must be authentic.
• AQRU may not offer certain products, features and/or services on the AQRU App in certain jurisdictions due to regulatory restrictions.
• Finally, we have a $30 million insurance policy to cover the value of your investment in the unlikely event of theft through hacking.
• Cryptocurrency is a decentralised digital money system that operates as virtual tokens or coins.
• As the cryptocurrency is decentralised, its development is decided by reaching a consensus within its community.
• The price of aBitcoin has jumped up and down since it first entered the mainstream consciousness in 2013.

Few technologies have the ability to stir passionate online debate and baffle the vast majority of the population as bitcoin. The virtual currency rocketed in value last year before crashing at the start of 2018. Is a global cryptocurrency exchange platform that currently does not operate in Europe, UK and Australia, still you are welcome to browse and find out more. Is a global cryptocurrency exchange platform that currently does not operate in the US, still you are welcome to browse and find out more. Is a US-based licensed platform that provides crypto exchange services for US residents.