Are you afraid of purchasing Cryptocurrency ? $ Bitcoins
This information is purely for those people who have not yet started or not yet purchased any cryptocurrency in there life.
So don’t panic and take a closer look at Cryptocurrency, how it works ? Lets make it simple ( reference source link )
What is A CryptoCurrency ?
It is classified as a subset of a digital currencies and are also classified as a subset of alternative currencies and virtual currencies.
Well, we specially discussing about Bitcoin, Bitcoin created in 2009, was the first decentralised cryptocurrency. Since then, numerous other cryptocurrencies have been created.
Bitcoin and its derivatives use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control is related to the user of bitcoin’s blockchain transaction database in the role of a distributed ledger.
Decentralized cryptocurrency is introduced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In Decentralized cryptocurrency, companies and governments cannot produce new units, and have not so far provided backing for other firms, banks or corporat entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrency are based was created by the group or individual known as Satoshi Nakamoto .
In Centralized banking and economic system such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of flat money or demanding additions to digital banking ledgers.
BitCoin is fully implemented decentralized cryptocurrency. Within cryptocurrency systems the safety, integrity and balance of ledgers is maintained by community of mutually distrustful parties referred to as miners, member of general public using their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a particular timestamping scheme. Miners have financial incentive to maintain the security of a cryptocurrency ledger.
Now lets move towards, Its Legality !
The legal status of cryptocurrencies varies substantially from country to country and is still undefined or changing in many of them. While some countries have explicitly allowed their use and trade, others have banned or restricted it. Likewise, various government agencies, departments, and courts have classified bitcoins differently.
Now, go for Loss, theft, and Fraud
GBL, a chinese bitcoin trading platform, suddenly shut down on October 26, 2013. Subscribers unable to log in, lost up to $5 million worth of bitcoin.
In February 2014, Cryptocurrency made headlines due to the world’s largest bitcoin exchange. Mt. Gox, declaring bankruptcy. The company stated that it had lost nearly $473 million of their customer’s bitcoin likely due to theft. (equivalent to approximately 750,000 bitcoins)
Main but unforgettable cause of bitcoin going high in the market and that is Darknet Markets
Cryptocurrency is also used in controversial settings in the form of online black markets, such as Silk Road. The original Silk Road was shut down in October 2013 and there have been two more versions in use since then, the current version being Silk Road 3.0. In the year following the initial shutdown of Silk Road, the number of prominent dark markets increased from four to twelve, while the amount of drug listings increased from 18,000 to 32,000.
As per above information, which is taken from wikipedia pages, Bitcoin or tilting towards bitcoins is very risky. This is completely risk based programme / business. Before investing any cryptocurrency you should search the proper channel on internet. read their documents before binding with them.