Bitcoins are a medium of trade. They are electronic currencies that can be sent from one user to the other without intermediary’s

interferences. They are modified in a strong cryptography process to make them serve their purpose. They are converted from money that is deposited in the bitcoin accounts. The cash deposited is converted to electronic currencies which are the bitcoins. Traders use this medium of exchange for many reasons in the benefit of conducting the trade purposes that allow the use of the bitcoins as a medium of exchange.

How are bitcoins made?

Bitcoins are made through a conversion process. The trader, who is the user of the bitcoins, deposits cash in the bitcoin account.

Then he buys the bitcoins at their availability prices. After buying the bitcoins, this is when the cash used in the transaction is converted into the number of bitcoins that the cash amount can purchase. The more cash is converted the more bitcoins are converted. The bitcoins are more presentable in the electronic trades.

During the process of conversion, there are some transaction fees that are deducted. They are deducted by the service provider which is the bitcoin company. During the conversion, the bitcoins prices can be high or low depending on the rate that they are converted. Purchasing bitcoins at the time they are at a low price is advantageous to a trader since the less they cost the more bitcoins they get in return after conversions.

Are bitcoins valuable?

As a medium of exchange, bitcoins also have their value. Value of trading mediums increases due to the economic conditions. What

makes a medium of exchange get valuable is its demand. Following the rule of demand and supply, it states that when the demand is high, the value of the demanded commodity also rises. For the case of bitcoins, its value has been improving since the demand also has been rising down the years.

Since in the current world use of technology has changed things so much, the methods of electronic trading have been widely used. This means that the replacement of cash with electronic cash is on higher rates hence making the bitcoins valuable.

A way that proves that the bitcoins are valuable is that traders can keep them for future use. This can be done by making them remain it their accounts without conducting any trade using them. After some time, the demand for bitcoins will rise and during this time, the traders can sell their bitcoins or lend loans to traders and get the benefits of interests gained from the loans. Since bitcoins can change in

their prices, in most cases it favours the traders selling them. The brokers who give the bitcoins on loans also benefit from the trade.

As most people would not see the need for using electronic currencies, they should try out using the best methods and learn how the work. Bitcoins are more valuable than using the dollar in most cases. As most of the business operators are encouraging electronic trading, it’s advisable for individuals and traders to learn how to use the bitcoins since they are valuable compared to cash in hand.

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