No, it is entirely digital. However, it can be converted back into traditional notes and coins (known as FIAT currencies) if you wish. At the moment this is usually undertaken using exchanges or brokers, but there are some visa type charge cards being introduced that store your cryptocurrencies that can be used in ATM machines to convert into cash.
Cryptocurrency - Frequently Asked Questions
Bitcoin & Ethereum Cryptocurrency in Devon South West UK.
- What is cryptocurrency?
It is entirely digital money encrypted with unique serial numbers secured with un-hackable coding. All transactions with cryptocurrency are recorded on the underlying technology known as the Blockchain. Think of crytocurrency as normal money, but without any physical notes and coins.
Since Bitcoin launched in 2009, there are also now additional currencies (altcoins) in the cryptocurrency space.
We already make many transactions without ever physically touching our money - Salaries paid direct to bank accounts - payments by direct debits - buying products online etc. We could consider these types of transactions to be semi-digital as such. The main difference with cryptocurrency is that it is fully digital, completely decentralised and operates without third party intermediary being involved.
- Are there physical coins and notes?
- How can I buy Cryptocurrency?
This is done using exchanges online or local brokers who will charge a small commission for their services. Similarly, when we buy currencies such as Euros, Dollars or Turkish Lira etc to use abroad, we are charged commissions at banks and post offices to buy that currency. The Crypto Group have made it very easy to purchase cryptocurrencies.
Get in touch for further details and we can link you up with our trusted third party broker. You will need photo proof of identity in order to go ahead.
- How and where can I use cryptocurrency to pay for goods and services?
You can use cryptocurrency easily and quickly using a mobile wallet or your computer. This allows you to send or receive money to and from someone cheaply and quickly anywhere in the world. Even if you don’t already own crypto, you can accept it straight away with a dedicated wallet. Cryptocurrency has yet to become fully mainstream, and has not yet reached the point of being accepted everywhere, such as High Street shops, market stalls and supermarkets. However, as usage becomes more widespread, more merchants large and small will accept it. There are already many individuals, businesses (including my own), already using Cryptocurrency. It is rumoured that McDonalds, eBay, and Amazon will accept cryptocurrency very soon. When the retail giants get on board, cryptocurrency will become an everyday thing. As new multiple payment platforms are introduced for shop tills, coffee shops and restaurants etc cryptocurrency will become as commonplace as Visa, MasterCard, PayPal and cash.
- Can I turn cryptocurrency into cash?
Cryptocurrency can be converted back into traditional (FIAT) notes and coins if you wish. At the moment this is usually done using exchanges or brokers, but there are some visa type charge cards that store your cryptocurrencies that can be used in ATM machines and retail outlets converting your crypto coins into cash. It's still early days and it will get easier over time. As more people use digital money there will be less need to convert it back into FIAT money.
- What is the Blockchain?
The Blockchain is the technology behind cryptocurrency. It is an un-hackable encryption coding system enabling it to function with unprecedented security. It is a decentralised ledger of who holds what. It does not operate from a single server and this open source public ledger is run collectively by tens of thousands of computers all around the world.
Blockchain technology is not just about money though. This technology has already begun to support a myriad of other platforms to create a fairer and more transparent world, to encourage a culture of honesty, accountability, and responsibility. This is a huge subject far too big to cover in detail here.
An excellent book on the subject is 'The Blockchain Revolution' by Don Tapscott or alternatively watch this video for a clear overview.
- How much can I invest into cryptocurrency and are there guaranteed profits to be made?
You can invest as little or as much as you like when it comes to cryptocurrency, but no one really knows for certain the future value of any coins. If anyone offers a guaranteed return on an investment especially with something as new as cryptocurrency, there's usually a catch, so be warned, if it sounds too good to be true, then it probably is.
However, it is estimated by Bill Gates, Richard Branson and Elon Musk that in the next few years, the value of Bitcoin could rise between $100,000 and $1m per coin. But of course no one is guaranteeing that this will be the case. So please note that if you are going to put any amount of your own money into this, do your own independent in depth research first, and never risk any more money than you are not prepared to lose in its entirety.
- What is mining?
Mining comprises of two parts. Firstly it is the process that actually brings new cryptocurrency into circulation. Mining is done using powerful computer processors to solve a mathematical puzzle and is now highly competitive process requiring massive hashing power. Successful miners are rewarded in Cryptocurrency. The process is quite literally a 'printing press' for digital money.
Today, huge collective mining pools are now the only realistic way to mine the coins and make substantial profit.
The second component of mining is that miners get paid small fees for all confirmations of financial transactions that take place on each block within the Blockchain.
- Should I mine coins or just buy and hold onto coins?
Fluctuations in the live market value of a cryptocurrency becomes less of an issue for miners, because the most successful pools continue to accumulate more coins daily regardless of markets.
Each time a mining pool wins a new block, new coins are collected from that block so are in effect accumulating coins at a discounted price, as well as accumulating transaction fees for each block mined. On the other hand, If you bought one single Bitcoin, you only ever have one single Bitcoin. It could go up or down in value, and the cryptocurrency market can be very volatile.
- Is it too late to get on board with Bitcoin and Cryptocurrency?
Absolutely not! It has only just begun. It's only in its tenth year and less than 1% of the population have even heard of Bitcoin globally. What's more, most of that 1% either have limited or no knowledge about It and usually base any negative opinions from over simplified, misleading and frequently inaccurate news headlines on TV radio and newspapers. Bitcoin, Altcoins and Blockchain technology are all here to stay. When you really understand why the longterm success is inevitable you will realise its full potential. This is exactly why we do what we do. To provide informed and accurate education for everyone at this very early stage of adoption.
- Do you work for any company?
No, we do not represent any company.
We are a group of individuals who share a common interest and information on crypto currency. Everyone in our group has chosen to mine a variety of cryptocurrencies through a crowd funded mining pool, simply because it makes sense to us, but we do not work for the pool. In fact the opposite is true. The pool works for us and pays out to us every day.