What Is Cryptocurrency?

What Is Cryptocurrency?

It is thought that we are slowly transitioning into a cashless society. We’ve had the introduction of contactless payments, and Apple and Android pay. So why, wouldn’t we consider leaving some of our cash in digital form too.

Over the next couple of weeks, we’re going to be taking a look at cryptocurrency and see what this means for professionals in the Wills and Probate sector.

What is cryptocurrency and where did it come from?

  • Cryptocurrency was developed in the wake of the 2008 financial crisis by Satoshi Nakamoto. This 12-year-old cryptocurrency is called Bitcoin
  • As with many things, as time progressed other cryptocurrencies began to emerge. There are referred to as altcoins
  • Bitcoins or altcoins aren’t a physical object. They need to be held in a digital wallet and can be exchanged for goods and or services in the digital sphere
  • Cryptocurrency can be transferred directly from person to person without using a bank or third party

How can people get cryptocurrency?

There are several ways people can get cryptocurrency. These include:

  • Gifting: someone can give you cryptocurrency in a similar way they would gift you cash. Although instead of receiving the physical coins or notes, the money will be added directly to your digital wallet
  • Purchasing: People can buy cryptocurrency using their credit or debit card.
  • Receiving payment: Someone can pay you for a goods or service using cryptocurrency.

For more information about cryptocurrency, and how it can be used CLICK HERE.

In our next article we look at why cryptocurrency owners should make a Will.

Jennifer van Deursen