The online world encloses our social life, provides us with entertainment of all kinds, helps us to get any information or product anywhere in the world; it was logical that sooner or later, it would also create a form of money. We are not talking about digital money like the one we have in a video game account, but a real currency with which you can buy things beyond the online world. Those are cryptocurrencies, and every entrepreneur should know about them. Kimberly Rosales, a specialist with years of experience in this space, explains how the arrival of cryptocurrencies has had a positive impact on entrepreneurs.
Unlike traditional currencies issued in each country, cryptocurrencies simulate what we used to do with gold: mining. They are hidden in encrypted blocks and to access them, you have to solve mathematical problems. Anyone can mine cryptocurrencies, discover them and then sell, exchange or use them in the market.
“Currently, very high-end computers are used, sheds of processors working day and night, pools of miners who unite their technological power to solve a single problem and thus obtain the coveted Bitcoin (BTC). But its creators have already said that there is a limited number of blocks so that mining will not last forever, which is why its value is rising more and more since it is very difficult to obtain them,” says Rosales.
The first to accept BTC were technology organizations such as Wikileaks and the Electronic Frontier Foundation in 2011, and during the following two years, foundations and organizations accepted BTC as donations.
During 2013 the currency suffered ups and downs due to both positive and negative reactions from society to the following events: software update bans in some countries due to legal framework problems, BTCs seized by authorities due to illegal trades, the launch of BTC ATMs, and universities accepting the currency as tuition payment.
Every entrepreneur is interested in accelerating their business or investing, and if you are like that, it is likely that many people have approached you with the proposal of mining BTC or making pyramid clubs; from now on, it is important to warn that the first is already too exploited and the investment exceeds the profits you will get, the second is illegal and in most cases are scams.
The real advantage that BTC offers you at this moment is the Exchange, just as you buy dollars when they are at a low price and then sell them when they reach a peak in the rise. In the same way, you can make money with BTC.
However, during the last five years, its value has risen progressively (with some minor dips that do not represent losses), so it is a medium-term savings tool. Its value in 2011 was around $100, and today, it exceeds $42,000. Not only will you save, but you can also earn substantial interest.
“In case you decide to take this action, you should not deposit all your savings in this currency. The distribution in different forms of investment is the smartest way to save, earn and protect your money. If you have everything in the same place, the chances of losing it all are multiplied,” suggests Rosales.
Another way to take advantage and at the same time add value to the cryptocurrency is to accept BTC in your business, both digital and physical. It’s good to stay ahead of the trends; even the government of Japan has accepted BTC as legal tender.
Among the benefits of cryptocurrencies and specifically BTC, we have that there are no intermediaries. Transactions are made person to person. No one earns a commission for the transactions; instead, 100% of the money is sent and received.
In addition to all this, it is not necessary to identify yourself to handle it. You simply need to have a virtual wallet on your device. There are no transaction limits. You can send and receive the amount you want. The money cannot be traced, so no one will know who receives, sends, where or when the transactions are made, or how the money is obtained.
“As you may notice, buying BTC is extremely safe for every individual, but that also lends itself to protect criminals, who have found in cryptocurrencies the perfect way to move their money undetected. Regardless of the use that each person gives to Bitcoin, the currency itself is not illegal. In fact, governments cannot control it, hence why they want to attack it,” concludes Rosales.