1) What is cryptocurrency and how deos it work?
Cryptocurrency is a computer-generated monetary system. It’s created by specialized, powerful computers called “miners,” which compete mathematically to secure “transactions.” The transactions are bundled which the cryptocurrency miner digitally verifies to assure the validity of all transactions. The miner computes a “cryptographic hash,” a computerized method to ensure the validity and prevent invalid construction.
2) What is the leagal status of Cryptocurrency?
Cryptocurrency is legal in the U.S., though other countries like Russia and Argentina have restrictions on foreign currencies. The United States Treasury Department has issued non-binding guidance on how it perceives certain cryptocurrency activities. FinCEN (Financial Crimes Enforcement Network) does not consider cryptocurrency “money transmitters,” as it relates to money laundering and terrorist financing.
3) What are long term projections for cryptocurrency?
This decentralized form of money does not require a processor like a bank or credit card company (and their fees), offering major benefits over fiat currency or credit systems. Values may fluctuate, but they have continued to generate excellent value returns.