Bitcoin & Crypto-Currencies
2018-03-28 16:00:00

Bitcoin & Crypto-Currencies

It is an electronic currency (crypto currency) that is fully traded via the internet or through the purchase platforms that support it, it has been around since about the year (2009) and its inventor is not known. It can be used to purchase via certain sites on the internet or convert it to regular currencies and exchange it to US dollars or other currency with a commission of course like any other currency.

The Price of Bitcoin has had violent unpredictable jumps, it has risen by mid-Year (2017) to about 16 USD for a single Bitcoin, and it is valued at the moment of preparation of this report to around (8000 USD) per Bitcoin and that makes it the world's most expensive currency.

There are distinctive characteristics of Bitcoin that distinguishes it from the rest of the traditional currencies, it is not issued by any central bank or state and is not subject to any control, despite recent attempts to control transfers through which to combat the financing of terrorism and illegal crimes. We have previously seen that some of the virus producers called (Ransomware) that encrypt files on the victim's device to receive a ransom to decrypt the encryption. Some may consider these qualities positive and others consider them to be negative, but all agree that the technology that supports Bitcoin (i.e. Blockchain) is unique and will make significant changes to many aspects of life in the near future.

 

Mining Process of Bitcoin

The Bitcoin currency is different from traditional currencies such as the dollar and the euro being supported by the assets and economies of their countries such as gold or trading power. The Bitcoin can be generated through an internet-connected computer and special programs by solving complex mathematical algorithms such as (Computta) or (MinerGate) software or other mining software, it requires running this software on your computer for a period of time to see your balance of this digital currency increasing over time, and the higher your computer specs and specifications your graphics card, the higher the speed of generation of your device(s), but we only advise this for those who leave their computers running without turning them off or letting them work for long periods of time.

Because of the high competition for the generation of the Bitcoin currency, special devices have been developed with mind boggling speeds that do not compare with your personal computers, no matter how strong it was. Because of the spread of the crypto-currencies, other electronic currencies have surfaced that the normal individual is also able to mine using the normal personal computers, and digital currency platforms and programs have supported the generation of different currencies through the same platform such as (Computta) or (MinerGate) software or other mining software  that are free and open source programs, but like any modern technology, these programs can be identified as viruses by mistake and you will need to update your protection program or add these to programs to your whitelist.

It should be noted that modern and dedicated electronic currency-mining devices (ASIC – Application Specific Integrated Circuits) consume large amounts of electrical power, so they are more widespread as a viable investment in countries where the price of the kilowatt is lower such as East Asia or for people with an existing investment in renewable energy and have a surplus in their electrical generation capacity.

 

Is there any reason to worry about dealing with the Bitcoin?

As mentioned earlier, Bitcoin is not controlled by any particular entity, government or bank, and therefore transfers to your electronic wallet are carried out without the mediation of banks, and since each bitcoin or a part of it has its encryption unique code, you can consider this code as a currency paper that proves you own it.

But more recently and because of the growing concern about the financing of terrorism and crimes, you must be careful not to buy or sell a currency except through intermediaries such as (CoinBase) or others whom you can make sure that their work is legal.

It should also be pointed out that some states impose taxes on crypto-currencies and others consider them illegal, but at the time of preparation of this report, the Jordanian Central Bank has not ban dealing with crypto-currencies, but they only issued a caution against dealing with them to protect the masses from fraudsters and to avoid losing their investment in the event of crypto-currencies collapse, which on-the-other-hand is a very debatable scenario globally.

But what you have to do in case this report made you curios about crypto-currencies, try experiencing with mining it through your device and read more about generating crypto-currencies using the cloud (i.e. Cloud Mining) providers like (Hashflare), also keep in mind not to invest your main capital on this subject because despite all studies, no one is absolutely certain that the crypto-currencies will be dominant or will wither. But, as we have said, the technology that supports crypto-currencies (i.e. Blockchain) is unique and will have significant impact.