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digital currency by brian cruz

How does digital currency work?

Digital currency is like an email, You use email to send messages to others through the internet and bitcoin send money through internet to send people who want to buy bitcoins or exchange bitcoins with you, and if you have bitcoin’s in your online wallet then you can spend those bitcoins on some stores because some stores allow bitcoin as a payment now. Santa Cruz Sentinel news says “Bitcoin is a type of digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties” These are examples on how digital currency doesn't need a bank,credit and third parties to function, this good because people wont have problems like how the bank can freeze you account and bitcoin doesn't allow that to happen with their transactions. Digital currency have a designed coin so that they are self contained, which allows that not to have the bank involved. Life ware says“Bitcoins are traded from one personal 'wallet' to another. A wallet is a small personal database that you store on your computer drive (i.e cold storage), on your smartphone, on your tablet, or somewhere in the cloud (hot storage)”(Gil). You have your own digital wallet that allows you to keep or exchange your coins with others or save so that they can be invested later on. People have been successful with their investments and other people see that so thats when its starts to become a trend because it it works out great for one person it should do the same for others.

Why is digital currency so popular?

Bitcoin has broken a $12,000 market value, it has made people who have invested in bitcoin millionaires, so now more digital currency are begin made because of how successful bitcoin has been. Yahoo finance states“Eddy Zillan’s $12,000 investment is now worth well over $500,000, a return exceeding 4,100% in just a few years”(Newman). Zillan keeps investing on digital currency each week and add’s more every time he invest into digital currency. Zillan invest because he has got nothing but good things out of it so he keeps investing because its a successful for him so far. Business Insider says “the first few months, his returns had begun to skyrocket. As his gains inched higher, Zillan was reading about cryptocurrencies obsessively, sometimes spending hours a day on cryptocurrency forums or chatting with other investors online. Soon, he was dabbling in alternate cryptocurrencies”(bernard).When people start to make money off of digital currency they just want to keep doing it because they strive for money that they need to keep investing. However Zillan should he be careful because what happens if he gets hacked and loses everything?

what if someone steals your identity how will this affect your digital currency?

If you have your bitcoin gets stolen because someone hacked you,then you lose all your investment. Elisabeth Goodridge writes for New york times and says “Once this happens everything is lost! Your identity is compromised beyond recovery. Any cash or property you had secured through the system has disappeared”. Everything will disappear because the person who stole your information is now playing as you and bitcoin won't be able to recognize that unless you make a report with the FBI Cyber Criminals or Law Enforcement Agencies. If someone did decide to contact the FBI Cyber Criminals they still wouldn't be much help for accusing the hacker for theft crime. Leyla Amur writes in Brave new coins and says“ law enforcement agencies remain undecided as to whether or not stealing digital currency constitutes a crime”. If someone does steal someone’s information and that hacker is found he/she might not even get a punishment for his actions because stealing cryptocurrency is still an uncertain crime.People may then start to wonder which digital currency are secure and safe to invest in.

which digital currency does the public think is the best?

The most popular digital currencies right now have been bitcoin and ethereum because of how popular they have become with the public and made people successful,Bitcoin seems to be the best option at the moment since they have been known to make people rich in their investments that's what most people would invest in than other digital currencies. Lui kenneth in Quora explains says, “Investing in bitcoins resembles investments in other currencies; The principle of buying cheap and selling expensive to make a profit is the same”.Bitcoin allows you to make transaction and spend your bitcoins like if it were real money which is also of the reasons people start to invest on bitcoin so they can use it like real money online. Bitcoin has made lots people invest into digital that it allows digital currency values to go up with the amount of people investing. Sean Williams who writes for The Motley Fool states,“we've witnessed the aggregate value of all cryptocurrencies rise from a market cap of $17.7 billion to $248 billion as of Nov. 22, 2017. That's about a 1,300% gain in less than 11 months”.The cryptocurrencies gain of 1,300% in less than 11 months is why people say that bitcoin is the best to invest on since it market value has only been going up and peoples investments go higher as well. Since the market is going up with bitcoins stores may want to make a new payment option involving bitcoins.

Will bitcoin be a new payment option in the future

There are big brands that have already started to accept bitcoins as payments like microsoft, subway and reddit. Cryptocurrencies have also started to make their own paypal version with bitcoins. Lucinda Shen writes for Fortune and says“Coinbase is not the only company with such a platform. Bitpay, which is used by Microsoft, also makes a cryptocurrency payments program—though notably, it only accepts Bitcoin”.Microsoft is a big brand company and they have now teamed up with bitcoin to make bitcoins in cash so that people can exchange their bitcoins for money, so then bitcoin can start to get their bitcoins back and then sell them again.There are other company who would rather watch this happen then getting involved. Darryn Pollock explains in Coin telegraph says“Now, there is a host of companies either turning away from Bitcoin or doing a full U-turn. Microsoft recently announced that after almost three years it would stop accepting Bitcoin”. There are still some companies that would rather not invest into the cryptocurrencies paypal like microsoft because it could a wrong way for bitcoin so if a big brand gets out most other companies would do the same because it a big risk.

Citaions

paragraph 1

“A Look at How Digital Currency Works.” Santa Cruz Sentinel, 3 May 2016, www.santacruzsentinel.com/article/zz/20160502/NEWS/160509117.

Gil, Paul. “Bitcoins: What's the Big Deal?” Lifewire, 7 Mar. 2018, www.lifewire.com/what-are-bitcoins-2483146.

paragraph 2

“Meet Some People Getting Rich from Bitcoin.” Yahoo! Finance, Yahoo!, 17 Nov. 2017, finance.yahoo.com/news/meet-people-getting-rich-bitcoin-181650451.html.

Bernard, Zoë. “Meet 'The Wolf of Crypto Street,' an Ohio Teenager Who Used His Entire Savings to Become a Cryptocurrency Millionaire.” Business Insider, Business Insider, 6 Feb. 2018, www.businessinsider.com/eddy-zillan-ohio-savings-cryptocurrency-millionaire-2018-2?scrlybrkr=a0788d8b.

paragraph 3

Goodridge, Elisabeth. “Steps to Prevent Identity Theft, and What to Do If It Happens.” The New York Times, The New York Times, 1 May 2009, www.nytimes.com/2009/05/02/your-money/identity-theft/02idtheftprimer.html.

“CSI Crypto: Can Victims Recover Stolen Coin? » Brave New Coin.” Bravenewcoin, 13 Oct. 2017, bravenewcoin.com/news/csi-crypto-can-victims-recover-stolen-coin/.

paragraph 4

Kenneth , lui. “What's the Best Cryptocurrency to Invest in Right Now?” Quora , Quora, 27 Apr. 2017, www.quora.com/Whats-the-best-cryptocurrency-to-invest-in-long-term-Why.

Williams, Sean. “The Only Cryptocurrency I'd Consider Buying.” The Motley Fool, The Motley Fool, 26 Nov. 2017, www.fool.com/investing/2017/11/26/the-only-cryptocurrency-id-consider-buying.aspx.

paragraph 5

Shen, Lucinda. “Meet 'Paypal for Crypto,' a New Way to Pay With Bitcoin and Litecoin.” Fortune, Fortune, 15 Feb. 2018, fortune.com/2018/02/15/bitcoin-paypal-coinbase-commerce/?scrlybrkr=adcc5a8d.

“Is Bitcoin Dying as a Payment Option?” Coin telegraph, Coin telegraph, 12 Jan. 2018, cointelegraph.com/news/is-bitcoin-dying-as-a-payment-option.

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