DU financial experts: What's a quick explanation as to how crypto currencies....

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are converted into cash, as most merchants don't accept them for purchase.

Are amounts transferred online to a regular bank account, or by wire? Is it safe and routine operation. One hears about crypto wallets and all that, but how does one spend the funds?

[drray23]

1. There are many legit places where you can buy/sell bitcoins.

Those are crypto exchanges. Nowadays, even mainstream outfits do accept and exchange bitcoins. For example, if you have a paypal account, you can buy/sell bitcoins via paypal. You can host your crypto wallet there as well.

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5. Thanks. Do you trust them, the idea of crypto currencies I mean?

[drray23]

6. its not for everyone.

It can fluctuate wildly. As far as getting and selling some, if you stick to reputable brokers like paypal you should be safe.
Crypto is useful in certain instances.

For example, it makes international transactions easier, provides you with privacy as well. As long as you have an internet connection, you have access to your money (you can also use physical crypto wallets like I do. Ledger is one such device).

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7. Sorry, I know very little about it. A crypto wallet device is electronic...

doesn't hold actual physical bitcoins? Or is there such a thing?

[drray23]

9. works like your bank account. The bank

does not hold physical dollars for all money you have in your account, they just track the number.

[leftieNanner]

8. The thing I don't understand is "mining" bitcoins

And the fact that it takes a huge amount of energy/power to do so.

What does this mean?

[Justice matters.]

10. Cryptocurrency Has a Huge Negative Impact on Climate Change

But scientists and others worry that bitcoin and other cryptocurrencies might pose a danger to the planet. That's because their blockchains require computers all over the planet to solve complex equations in order to verify transactions. That practice, called mining, can be lucrative, because the people who do it earn bitcoins as a reward, as The Balance explains.

The problem, critics say, is that all those calculations needed to solve the equations for mining cumulatively consume large amounts of electricity. Bitcoin already uses 149.63 terawatt hours annually, more than entire countries such as Malaysia and Sweden, according to the Cambridge Bitcoin Electricity Consumption Index. Microsoft co-founder and global philanthropist Bill Gates recently told journalist Andrew Ross Sorkin that bitcoin "uses more energy per transaction than any other method known to mankind."

More at: https://science.howstuffworks.com/environmental/conservation/issues/cryptocurrency-climate-change-news.htm

[leftieNanner]

11. Thank you for this

Now I have a little bit of understanding of the process.

I like your handle. Makes me think of Glenn Kirchner and his wonderful "Justice Matters" videos.

[HariSeldon]

2. You have to trade it, like a foreign currency (FOREX)

There are sites where you buy cryptocurrency paying with a traditional currency or buy a traditional currency paying with cryptocurrency. Some quick examples:

* coinbase.com
* Robinhood trading platform

I make NO representation about the trustworthiness of these sites/services. Personally, I think cryptocurrency in the currently available implementations are an Objectivist scam.

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4. Thank you. I'm still leery of them myself. Too often I've heard of millions worth...

of crypto currencies being absconded with by a slippery operator who vanishes with the funds and many lose their investments.

[AZSkiffyGeek]

3. I believe PayPal does it now

Or at least they make it accessible to use for transactions.

[hunter]

12. Someone buys a magic number from someone who is selling it.

Personally, I'm much more invested in the magic bean market.

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13. Sounds about right.