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The cryptocurrency market is still unbalanced but has a stable upward trend. More companies now accept bitcoins, lightcoins, and other cryptocurrencies, but using coins everywhere can be difficult. Here are the three best ways to convert your bitcoins into cash to use when shopping online and in-store.

Bitcoin in the financial system

Information surplus has become a sign of modern society and the monopolization of information. The answer to these processes was bitcoin. It supports the anonymity of transactions and their independence from any public and private financial institutions.

Bitcoin is a precedent for an open network that operates according to its own rules, it accepts any number of potential participants who want to go beyond the institutionalized space provided by the state and traditional financial institutions and participate in creating their own space of operational activity.

There are currently many types of cryptocurrencies. One of the most popular is Bitcoin, because this model of cryptocurrency has the most extensive and large network, and is one of the most liquid cryptocurrencies. The main idea of bitcoin is to create a currency that will work transparently, distribute freely, and will not depreciate. Unlike the usual currencies, no state can now control, further “print” or devalue bitcoins.

How to convert bitcoin?

It is too expensive to pay with bitcoins for goods and services today due to the low speed and high cost of transactions. It is much easier to convert cryptocurrency into “live” money.

Bitcoins can be transferred anywhere and anytime; everything will arrive in a few minutes. Bitcoin is intangible and is not pegged to any government currency, precious metals, or natural resources. For example, if you need to convert bitcoin to Naira, there are several possible ways:

• through an ATM

Bitcoin ATMs are available in most major cities around the world and provide a relatively quick way to convert bitcoins and other cryptocurrencies into government-issued currency. Many Bitcoin ATMs allow you to buy bitcoins in much the same way that you deposit money into a regular ATM.

• through the Internet exchange service

These are intermediary services with which you can withdraw funds from the sale of cryptocurrency to ordinary electronic wallets, for example, Yandex-Money, or even exchange virtual money using bots in Telegram.

• Peer-to-peer

It implies personal interaction between the seller and the buyer and payment for cryptocurrency in cash or transfer to a bank card. A potential buyer of virtual money can be found in one of the online communities, the largest of which is Lokalbitcoins.com.

Moreover, you can use a Bitcoin debit card. Cryptocurrency debit cards are a practical and affordable way to spend bitcoins and other cryptocurrencies in almost any retail store.

What are the risks?

There are many risks involved in buying, selling, exchanging, and converting cryptocurrencies. Individuals and legal entities must be aware of them, before performing such operations. The main risks include:

• the possibility of a loss of funds due to theft, for example as a result of cyber-attacks on cryptocurrency exchange platforms, or use infrastructure;
• no guarantees for the return of invested funds in cryptocurrency. Savings held in cryptocurrency are not guaranteed as they are not considered bank deposits;
• the possibility of fraud. Savings can be used to build financial pyramids, which can in a relatively short time lead to the loss of investors’ money;
• significant price fluctuations of cryptocurrencies and related risks – speculation and unregulated levels of commissions for transactions in cryptocurrencies;
• lack of infrastructure. Cryptocurrencies are not generally accepted in trade and service networks. They are not legal tender and are not currency.

Cryptocurrency in the modern system of international monetary, financial, and credit relations is a convenient form of electronic payments and promising for implementation investment. This article will analyze the features of the cryptocurrency bitcoin in modern financial markets and provide a guide on how to mine bitcoin gold.

What is bitcoin?

Today, digital money has become a new challenge to the usual traditions of money circulation and is becoming a purely conditional (virtual) reality and a key element of the virtual economy. Among digital money, there is a cryptocurrency – a digital currency protected by cryptographic technologies. The cryptocurrency payment system is based on the following principles:

• decentralization;
• the anonymity of participants;
• independence from state influence;
• lack of a single control center;
• scattering of data among the parties-contractors.

The cryptographic code protects the cryptocurrency and it gives the ability of any user-operator to issue it bypassing the actions and positions of the central bank. Blockchain technology is a distributed database that requires appropriate IT support and is based on special encryption algorithms. Issuance (mining), circulation, and accounting of such units are decentralized, there is no external or internal administrator of this mining process, and as a key feature – cryptocurrencies have no limits of their formation and circulation (distribution).

Cryptocurrency provides a fast and reliable system of payments and money transfers, which is based on the latest technologies and is not controlled by regulatory government agencies. There are many cryptocurrencies in the world today (Bitcoin, Litecoin, Ethereum, Peercoin), but the most famous with the rapid development is Bitcoin (bitcoin).

It is a program code that is not regulated by any country or banking supervisor in the world and does not have a single issuance center. The production of bitcoins is limited algorithmically: theoretically, every owner of a powerful computer can “get” bitcoins by using computing power, but there is a limit to their total number in circulation.

Where to get “magic” bitcoins?

Cryptocurrency is mined by millions of computers around the world, using a program to calculate mathematical algorithms. Since 2009, bitcoins have been mined on home computers. However, over time, this task became more difficult, so the creation of bitcoin farms, which use special powerful equipment. The crypt is also mined on Asics – equipment created specifically for mining.

Bitcoins are stored in an open database – a blockchain, which is a decentralized public register. It is essentially a kind of electronic ledger, a copy of which is stored on thousands of computers at the same time.

The mechanism of creating bitcoin can really be compared to the extraction of gold, which is supported by current monetary currencies. It was necessary to increase the value of banknotes constantly increase production capacity for gold mining. The main feature of creating bitcoin is the constant complication of the calculation algorithm, so each new “coin” is mined with more time and resources.

Benefits from using cryptocurrency

The main advantages of using cryptocurrency include:

• No inflation. The commodity prices remain at the same level, which leads to the absence of currency depreciation;
• Neither banks nor neither the tax authorities nor the state can control the exchange coins between users’ wallets, which reduces tax revenues to the state budget;
• Significant savings in the cost of issuing money. Since the Bitcoin system is intangible, coins and printing are minted banknotes, as well as the associated maintenance costs unnecessary;
• Low commission. Payments using cryptocurrency are currently made either without commission or with incredibly low commissions;
• Peer cryptocurrency network. There are no such networks the master server, which is responsible for all operations;
• Cryptocurrency cannot be copied.