The users of bitcoin exchange the digital “coins” for products or services and trade them for real cash. You can pay electronically using the computer or phone app, and sort of sending money through PayPal. Bitcoin trading and mining are anonymously handled, and making this cryptocurrency prime for cybercrimes, such as phishing or blackmail schemes. All these when combined with a fact that bitcoin isn’t regulated by any government or bank and tied to country, makes for the scary combination.
Bitcoin and Future Exchange
Bitcoin gained huge credibility when the large financial company created the futures exchange for this currency. (The futures exchange is fancy investment term for central marketplace of buying & selling the futures contracts.) The futures contract obligates buyer and seller to buy and sell some kind or amount of asset (such as gold) at certain price. That depends what people are keen to pay for such assets, the futures contracts help to determine value of the asset.
Many large investing companies are launching the bitcoin futures exchanges, which includes New York’s NASDAQ. The applications are filed with Securities Exchange Commission for approving bitcoin associated exchange-traded funds.
How Can You Buy Bitcoin?
For buying bitcoin, if you want to take on this risk, you just need the digital currency account, such as Coinbase. The accounts act as the digital wallet just like PayPal account. When you have uploaded all your details and money, you may buy bitcoins. The process is scarily simple.