Investing
Today cryptocurrencies are
one of the main investing
objects in the world. Bitcoin
is the one which is ahead of
all other digital currencies. It
is stated that one Bitcoin was
valued at $7000 in November
2017 and this value keeps
growing.
The fastest rise of digital
currency has been recorded
by Ethereum. Its value has
increased by at least 2700
percent since May 2016.
Even though cryptocurrencies
are high rising investment
objects, it also entails high
risks, because their market
values fluctuate instantly.
Bitcoin has received the
highest demand for investing,
even though there had been
a slight downfall since 2017,
while there are many other
types of cryptocurrencies to
invest on, such as Litecoin,
Lithium and Monero.
There are wallet services
offered by main exchanges to
store cryptocurrencies when
customers buy their assets.
But, one of the most secure
ways to have full control over
assets is storing them in a
private wallet on a private
computer or a server.
validation of transactions.
Their duty is to solve
cryptographic puzzles. It is
essential in order to record
it in the Blockchain. Miners
make profits solving puzzles.
When a miner solves a puzzle,
he receives a transaction fee
and a reward payment (which
is 12.5 bitcoins as this article
is written).
Mining is not an easy task. In
order to mine, very powerful
computers are needed, not to
mention their huge cost and
power consumption. Also,
puzzles are designed in such
a way that only one person
of all miners will able to solve
the puzzle, making the other
miners’ time and money a
wasted investment.
Internal Revenue Service
(IRS) in the USA has taken a
decision in 2014 that Bitcoin
should be considered as
property for tax purposes.
There is a possibility that
hackers would be using
these online currencies for
web crimes. Not only there
is a lack of regulations,
but there’s also difficulty
in tracking cryptocurrency
exchanges, which fall in their
favor. So there are concerns
and
discussions
about
establishing
international
There are only 21 million laws.
Bitcoins in total. Out of
that 21 million, around 17
million Bitcoins have already
mined away as of now. The
amount of the coins that can
be mined is getting smaller
day by day, which makes the
coin prices go up. Because of
that, reward payment keeps
getting smaller.
Legality of cryptocurrency
Legal
status
of
cryptocurrencies
varies
from one country another.
Many
countries
have
not yet established laws
Mining
and
regulations
about
Miners are the ones who cryptocurrency.
Some
do the bookkeeping in this countries
have
entirely
network. Mining is the banned using cryptocurrency.
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China’s central bank banned
using Bitcoins in 2014. In
Russia, it is not banned, but
people must use Russian
Rubles when purchasing
goods.
University of Peradeniya GAUGE Magazine
Common cryptocurrencies
Bitcoin
The first and the most
famous one. Started in 2009.
Decentralized digital currency
type. Used in many areas
worldwide.