Bitcoins exist only as digital representations and aren’t pegged to any old-fashioned currency. In the last month or two I’ve observed bitcoin’s price increase exponentially. I had no thought what bitcoin was and never even heard about crypto currency a few months ago. But with the recent government and press attention crypto currencies have obtained, they’ve gotten everyone’s attention.
Crypto currency or more simply electronic money is getting approval quickly all around the earth as it makes transactions quicker and cheaper. These transactions are guaranteed by cryptography and each purchase has its signature or private key. Using its increase in price and reputation everybody else wants an item of the action. There are two major approaches to generate income with bitcoin .
The foremost is a fairly simple method of purchasing the money being an investment and hope that its value increases. The second is the method of “mining” bitcoins. When a exchange has occurred they’re then approved within the system by “miners” using complex algorithms. As an incentive for their work they receive purchase costs and/or newly minted bitcoins!
From an trading point of view there’s a large risk/reward element as that currency is somewhat new and has no intrinsic price causing volatility and huge cost changes. An optimistic simple truth is that there’s a large number of income dedicated to this and organizations are signing on to utilize this currency therefore we don’t know when their price can go back to zero!