FAQs ON CRYPTO and BITCOIN
What Is
Cryptocurrency ?
A cryptocurrency is a digital or virtual currency that is
secured by cryptography, which makes it nearly impossible to counterfeit
or double-spend. Many cryptocurrencies are decentralized networks based
on blockchain technology—a distributed ledger enforced by a
disparate network of computers. A defining feature of cryptocurrencies
is that they are generally not issued by any central authority,
rendering them theoretically immune to government interference or
manipulation.
What is a
Bitcoin ?
Bitcoin is a type of cryptocurrency. There are no physical
bitcoins, only balances kept on a public ledger that everyone has
transparent access to. All bitcoin transactions are verified by
a massive amount of computing power. Bitcoin is the most popular
cryptocurrency to date and has triggered the launch of hundreds of other
cryptocurrencies, collectively referred to as altcoins. Bitcoin
is commonly abbreviated as "BTC".
Why is there a surge in Bitcoin investments?
(1) Bitcoin is seen as an avenue for stored value, like gold but without
the hassle of physically holding the asset (2) Growing adoption of
institutions in accepting Bitcoin as a payment method and alternative
investment asset-class. (3) It is also sometimes viewed as an
inflation-hedge.