Where Tesla goes, the world goes. And if Elon Musk invested $1.5 billion in bitcoin, the most popular cryptocurrency to date, then it's time to jump on the digital money bandwagon and get up to speed on how to use cryptocurrencies and even make payments with them.

South Florida is emerging as one of the areas of the country that will most quickly accommodate this type of transaction.

In February the Miami City Commission approved incorporating bitcoin as part of the city's financial transactions. Mayor Francis Suárez promotes a project so that public employees can choose to collect part of their salary in cryptocurrency and has talked about investing part of the City's treasury in bitcoin.

While investors have embraced bitcoin as the cash cow of 2021 in hopes of becoming millionaires, major financial firms have shown some resistance as their experts debate the formation of a possible bubble in the bitcoin. cryptocurrency market.

However, the rush for bitcoin – a digital and decentralized currency – exceeds all expectations. Despite the fact that it does not exist physically, economic factors seem to indicate that its popularity is here to stay and its democratization is already unstoppable.

What is bitcoin?

Bitcoin is a currency that only exists in a virtual way, characterized by its decentralized structure, since there is no monetary authority responsible for its issuance, but rather it is driven by its users.

In other words, it is a purely electronic version of cash for Internet use that has become a very attractive alternative type of investment.

How does it work?

Each bitcoin is a currency stored in a mobile or desktop application, a kind of virtual wallet that allows its owner, using his own key, to transfer and receive the currency.

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— Daniel Kim Mon Feb 22 23:53:33 +0000 2021

Each transaction is recorded with cryptographic techniques in a public list called the blockchain, thus verifying its authenticity. The network is based on a user-to-user system, which eliminates the intervention of a third party such as credit cards or PayPal. It can be exchanged for real goods and services, and even liquid money.

How secure is the currency?

Supporters of bitcoin defend its security record, arguing that its only vulnerability is user error. For them, bitcoin technology represents the future of payment methods. On the other hand, detractors argue that the currency is elusive, volatile and unregulated, which lends itself to illegal transactions.

Businessmen and investment firm founders are putting up to 10 percent of their capital in cryptocurrency, which they use as a safeguard or guarantee against the ups and downs of the stock market.

Why are so many investing in this cryptocurrency if it carries great risks?

Bitcoin is a growing market for innovation and, like any emerging technology, carries risks, which is why it has a speculative investment profile. Even so, and despite warnings from financial institutions, enthusiasts are seduced by its stratospheric short-term profits and by not being regulated by governments.

Bitcoin also stands out in the investment market due to the arrival of hedge funds in search of better returns. Retiring these gains to your profits, however, results in a drop in the price per unit, as it did shortly after peaking. Personal finance experts suggest that each person do a thorough risk assessment before investing.

How can a person without much financial training handle cryptocurrencies?

▪How to open and keep a wallet safe. A wallet is an App that works on the mobile or on a desktop and gives you access to your CM, there are many types of wallets, basically there are physical ones (pen drive or on paper) and digital ones as an app that you can download.

The only requirement to open a wallet is to have a mobile number or email. This implies that anyone in the world can have a portfolio, which can function as a basic bank account. The CM Wallet is a solution for millions of people who do not have access to basic financial services.

▪How to buy CM and deposit them in the Wallet

Once you have a Wallet you can go to a physical exchange house or via the web and exchange your Fiat (regular) currency for CM, there are also ATMs where you can do it safely.

▪How to exchange them with other users

You can accept payments and issue payments to anyone with a wallet securely and easily, from your mobile phone or computer at a low cost per transaction and immediately.

Are cryptocurrency transactions reliable?

The bitcoin network is impenetrable, the only way to access it and the BTC that are there is by deciphering the cryptographic algorithms in which the keys to access them are written. This requires more economic power and computing power than the value of the entire BTC network.

The only real threat to the BTC network would be the quantum computer, which could crack the keys faster due to its computational power, but we are many years away from this technology being available and the BTC Network could be put on up-to-date with this technology and make any necessary changes to avoid possible damage to the network.

Bitcoin has been on the market for over 12 years and so far there have been no incidents within the bitcoin network that have affected any user. There have been hacker attacks on many occasions, but they focus on digital exchange houses. The CMs are encrypted, the wallets are encrypted, and it is very difficult for someone to access your wallet and extract your CMs without your consent.

This story was originally published on December 10, 2021 1:17 pm.