Cryptocurrency FAQs: From Bitcoin to Blockchain
The technology for cryptocurrencies has been around since the 2000s, but today it seems to make headlines on a daily basis. Terms such as “blockchain,” “ICO,” and “Bitcoin” are buzzwords for reporters, but there are a lot of cryptocurrency FAQs that news sources don’t readily address. Below are a few questions we want to answer for you.
Cryptocurrency FAQs
What is blockchain technology?
Blockchain technology is a decentralized means of storing transaction records. Think of the blockchain as a ledger of transactions—not just for money, but anything of value. The information on the blockchain isn’t stored in any centralized location, so it cannot be hacked. The ledger cannot be changed in any way; therefore, blockchain technology is incorruptible, which is what makes it so appealing.
Why do people buy cryptocurrency?
People buy cryptocurrency for many different reasons. When an individual decides to buy cryptocurrency, they don’t have to spend it right away—just like when you earn cash or purchase stocks. It is also decentralized, so no single governing body nor financial institution can regulate it. An individual may buy cryptocurrency because they want to:
- Benefit from the appreciation of a cryptocurrency
Invest in a new cryptocurrency and the crypto company’s individual projects
Purchase a good or service
Send money anywhere in the world instantly, without transaction fees from a government or financial institution.
This list is by no means exhaustive. As a decentralized currency and potential investment, there are lots of incentives for using cryptocurrency over cash.
How many Bitcoins are there?
Many people have wondered, “Exactly how many Bitcoins are there?” But to answer that question, you must clarify whether you’re asking how many are in circulation or how many will ever exist. The number of Bitcoins there are in circulation is constantly increasing, but as of April 2018, there were 17 million in circulation. Due to blockchain technology, we know that only 21 million Bitcoins will ever exist. Once 21 million are in circulation, the supply will be exhausted—unless Bitcoin changes in the years to come. Some cryptocurrencies have an infinite supply, while others are like Bitcoin and have a finite number. Having a finite number affects the value of the cryptocurrency over time.
What’s a cryptocurrency ATM?
A cryptocurrency ATM is a simple and familiar way to buy and exchange cryptocurrencies. A cryptocurrency ATM, such as one of our Pelicoin ATMs, is often located where regular bank ATMs are located. You might find a cryptocurrency ATM at a gas station or convenience store, and as cryptocurrency ATMs continue to grow in popularity, you might see them in other locations as well. They work similarly to the ATM machines you might already be accustomed to using, making it easier than ever to turn cash into cryptocurrency. Learn more about how to use Pelicoin crypto ATMs with the step-by-step instructions on our website.
Cryptocurrency with Pelicoin
If you’re interested in purchasing some cryptocurrency of your own, visit a Pelicoin ATM today! With locations across Louisiana and the Gulf South, Pelicoin can help you buy cryptocurrency today. If you have any questions, don’t hesitate to contact Pelicoin at support@pelicoin.com or (504) 507-0879.