{"id":43253,"date":"2018-04-27T07:00:14","date_gmt":"2018-04-27T06:00:14","guid":{"rendered":"https:\/\/www.clickworker.com\/?p=43253"},"modified":"2022-07-25T18:00:17","modified_gmt":"2022-07-25T17:00:17","slug":"cryptocurrency-payment-means-ibusiness","status":"publish","type":"post","link":"https:\/\/www.clickworker.com\/customer-blog\/cryptocurrency-payment-means-ibusiness\/","title":{"rendered":"Cryptocurrency: A means of payment for your Internet business?"},"content":{"rendered":"

\"Cryptocurrency\"<\/p>\r\n

Cryptocurrencies are fun and rev up the business? It certainly looks like it when we take a look at the market trends of the most popular digital currencies. But what is crypto money? Does it have a real value, or is it only an object of speculation? Should you accept crypto money as a means of payment for your Internet business? This blog post wants to provide answers to the many questions on the subject.<\/p>\r\n\r\n\r\n\r\n\r\n

What are cryptocurrencies?<\/h2>\r\n\r\n

Cryptocurrencies are digital currencies that can be used to buy services and make purchases on the Internet as well as in real life. Of course this only works where the currency is accepted.<\/p>\r\n

Cryptocurrencies are not issued by a central bank, although there is perhaps one exception, the Petro. According to the Chavez administration, the Petro is Venezuela’s official, oil-backed currency, covered by the country’s huge oil reserves. However, that is more than questionable. The Petro is generally rated as a scam set up by the Venezuelan government to obtain quick access to foreign currencies. (Find out more at: What is crypto money worth?<\/a>)<\/p>\r\n

Crypto money is based on a peer-to-peer payment network. Which basically means that the currency is distributed over many computers and anyone can participate in this network. And, to prevent a cunning computer coder from counterfeiting the currency, it uses cryptographic techniques. These techniques ensure that only crypto money owners are able to carry out financial transactions and especially that no one can forge the monetary units. <\/p>\r\n\r\n

In the case of crypto money, cryptography functions like a supervisory body, which is why it is named cryptocurrency.<\/strong><\/p>\r\n\r\n

Cryptocurrencies are stored by means of a so-called wallet software. This makes transactions such as sending and receiving money possible. Every currency has its own wallet.<\/p>\r\n\r\n

What does cryptocurrency have to do with blockchain?<\/h2>\r\n

Blockchain is similar to a ledger. It keeps records of every Bitcoin, Ripple or whatever currency transaction takes place and whom it belongs to. This means that cryptocurrencies cannot simply be replicated because information about who sent which coin or token to whom is recorded in the ledger. If the coin appears somewhere else, that person’s crypto money is worthless because according to the ledger that person is not its rightful owner.<\/p>\r\n

Since the blockchain is spread out over a large number of computers it cannot be forged. In doing so, the community generates security within this type of network thus ensuring that digital currencies cannot be duplicated.<\/p>\r\n\r\n

How are cryptocurrencies created?<\/h2>\r\n

Cryptocurrencies are “dug” or calculated by means of very complicated and complex mathematical processes. This is referred to as mining. The problem is that the more cryptocurrency units exist, the costlier is the calculation process. This is meant to prevent the inflation of the currency. When the most well-known currency, the Bitcoin, first appeared, you could dig Bitcoins yourself on your personal computer. Meanwhile, there are so many units of the currency that mining with a personal computer is no longer worthwhile. Your electricity costs would be much higher than the returns. Furthermore, a cryptocurrency has an upper limit – it is therefore not suitable for inflationary production.<\/p>\r\n

Graphic cards are ideal for digging cryptocurrencies. Several are usually combined to ensure effective mining. Mining uses a lot of electricity and creates heat. Most of the mining farms are therefore located in Iceland, where it is cold and electricity costs are low. <\/p>\r\n

Tip:<\/strong>\r\nIf you are thinking of starting your own cryptocurrency mining then have a look at this article “How to mine bitcoin”<\/a>. <\/p>\r\n\r\n

Are cryptocurrencies legal?<\/h2>\r\n

Some countries have forbidden cryptocurrencies. The Bitcoin is illegal in the following countries:<\/p>\r\n