Everyone is talking about it, but what exactly is it? What makes it different from the digital currency of your bank account? How does it fluctuate in value? What can it actually be used for?
What are they?
Cryptocurrencies began back in 2008 as a “A Peer-to-Peer Electronic Cash System”, so if this is the first you’ve heard about it, you’re a bit late to the game!
There are many types of cryptocurrencies these days beginning from Bitcoin, the first and still more important cryptocurrency, to simpler ones including Monero, Litecoin and Dash.
The currency is decentralised, so it is not issued or guaranteed by central banks, so while money in your bank account will be worth what it states, cryptocurrencies can fluctuate based on several varying factors (see more on this here).
So why use cryptocurrencies?
Similar to the stock market where you can purchase for one price and sell at a higher price many people are using currencies such as Bitcoin as an investment, however, there are a number of people now using them as a currency in itself to trade with.
In the ‘real world’
More recently, the digital currency is being used to purchase real, material goods. For example, an Australian couple have put their house on the market and are seeking 500 bitcoin (more than $AU6 million). The fact the currency fluctuates on a daily basis will make it quite difficult to determine the actual costs in Australian dollars until the day of settlement.
Risks of Cryptocurrencies
With the huge rises in value of the digital asset you there also come the risks of fraud among cyber thieves. While BBC reports Bitcoin as being relatively safe owing to the huge amount of computer power to produce or ‘mine’ bitcoins, there are other cryptocurrencies out there that are being mined with technologies as small as laptops, and even in same cases smartphones.
About Opilio Recruitment
We’ve been operating in the digital recruitment space for 7 years so know a thing or two about recruiting the best talent. Digital recruitment is what we do. We know that the single greatest asset to any business are its people and it is our job to find exceptional talent.
Opilio Recruitment is the go to digital recruitment agency for global brands, tech start-ups and everything in between, simply put we are connected with the best in the industry.