Articles Posted in Technology in Business

Cryptocurrency has been a trending topic of discussion for the last several years. Cryptocurrencies such as Bitcoin and Ethereum have captured the public’s attention with their unstable, and highly fluctuating market values, as well as their promises for quick and easy rewards.

Geo Bellas Chicago Business Lawyer

Currency in the Digital World

But what exactly are cryptocurrencies? And how secure are they as an investment?     Questions such as these are precisely what Federal and State regulators, as well as Congress, are struggling to explore and answer.

Bellas-Business-Lawyer-300x194Should your small business be dealing in the online currencies (“cryptocurrencies”) like Bitcoin? What are they, anyway, and what are the risks and benefits?

Bitcoin is what’s known as a “cryptocurrency,” a digital coin that buyers and sellers of goods and services can use to undertake transactions over the Internet such as restaurant bills and tuition fees. Bitcoin is not the only such cryptocurrency—Ethereum is another example—but it’s probably the best known.

One acquire Bitcoins in one of several ways: as payment for goods or services, by purchasing them at a Bitcoin exchange, by exchanging them with a willing partner, and through what’s called competitive mining, which involves using special software to solve math problems. They are stored in one’s encrypted online “wallet” and transmitted via a “blockchain” when a transaction is consummated, assuming the price of the good or service does not exceed the buyer’s available balance. One can convert Bitcoins to cash if another party agrees to buy them.