Cryptocurrency Scam or Computer Game Both

Cryptocurrency Scam or Computer Game Both

The current craze for CryptoCurrency Bitcoin (BTC) and Ethereum (ETH) for example purposes I will attempt to explain for those interested in investing.

Most with limited knowledge assume this is a form of investment option, versus investing in the Stock Market.

Satoshi Nakamoto is the name used by the presumed person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database.

Think of Satoshi Nakamoto’s white paper a road map to solve a puzzle a computer game by Mining Coins in which if computers decrease a transaction, rewarded with earning BitCoins. Investors have poured millions into large and complex mining locations in order to earn coins. Profitable the cost of running these computer centers expensive, with profits ranging in the 75% margin range.

Cryptocurrency Scam or Computer Game Both

Mining is the most profitable

In cryptocurrency networks, mining is a validation of transactions. For this effort, successful miners obtain new cryptocurrency as a reward. The reward decreases transaction fees by creating a complementary incentive to contribute to the processing power of the network.

The rate of generating hashes, which validate any transaction, has been increased by the use of specialized machines such as FPGAs and ASICs running complex hashing algorithms like SHA-256 and scrypt.

By mining, you can earn cryptocurrency without having to put down money for it. Bitcoin miners receive Bitcoin as a reward for completing “blocks” of verified transactions that are added to the blockchain. Any person can purchase the computers and set them up in a basement and start mining.

Buying and Trading Bitcoin the scam.

Any consumer can purchase a Bitcoin, you do not need a broker to listen to promises of great wealth from scammers, scammers will take your money and you will lose. Owning a Bitcoin is no different than betting on a stock, if it goes up you sell and make a profit. Unlike the stock market, you cannot short trade Bitcoins betting the price will go down.

A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. Exchanges may accept credit card payments, wire transfers, or other forms of payment in exchange for digital currencies or cryptocurrencies.