How "Crypto" Currency Works – An Overview of Bitcoin, Etherium and Ripple

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“Crypto” – or “crypto currency” – is a type of software system that allows users to transact over the Internet. The most important feature of the system is their Decentralized Nature – usually provided by Blockchain Database system.

Blockchain and “cryptocurrency” have recently become a major component of global zeitgeist; Usually the “price” of bitcoin is skyrocketing. It has managed to get millions of people to participate in the market, with many “bitcoin exchanges” going through massive infrastructural pressures as demand increases.

The most important thing to realize about “crypto” is that while it actually serves one purpose (cross-border transactions via the Internet), it does not provide any other financial benefits. In other words, its “intrinsic value” is firmly limited in its ability to transact with other people; Not in the case of value saving / promotion (which most people see as it is).

The most important thing you need to understand is that “bitcoin” and the like Payment network – Not “currency”. It will be covered more deeply in a second; The most important thing to realize is that “getting rich” with BTC is not about giving people a better economic position – it’s just about being able to buy “coins” at a lower price and sell higher.

To this end, when looking at “crypto”, you must first understand how it actually works and where its “value” actually lies …

Decentralized payment network …

As mentioned, the main thing to remember about “crypto” is that it is mainly a Decentralized payment network. Think of Visa / MasterCard without a central processing system.

This is important because it highlights the real reason why people are starting to see the “Bitcoin” offer more deeply; It gives you the ability to send / receive money from anyone around the world, as long as they have your Bitcoin wallet address.

The reason it features a “value” for different “currencies” is due to the misconception that “bitcoin” will give you the ability to make money because it is a “crypto” asset. It’s not.

The Only The reason people are making money with Bitcoin is because its price has “increased” – buying “coins” at a lower price, and selling at a much higher price. While this has worked well for a lot of people, it was actually based on a “bigger fool theory” – basically saying that if you manage to “sell” coins, it’s to a “bigger fool” than you.

This means that if you want to get involved with the “crypto” space today, you are basically looking to buy any “coins” (even “alt” coins) that are cheap (or cheap) and riding them until you sell them later. . Since none of the “coins” are supported by real-world resources, there is no way to predict when / if / how it will work.

Future growth

For all intents and purposes, “Bitcoin” is an expended force.

The epic rally of December 2017 hints at mass adoption, and although its price is likely to continue to rise in the $ 20,000 + range, buying a coin today would be basically a huge gamble that would happen.

Smart Money is already seeing a lot of “alt” coins (etherium / ripple, etc.) that are relatively low in price, but are constantly rising in price and acceptance. The key to looking at the modern “crypto” space is how the various “platform” systems are actually being used.

Such rapid “technology” space; Ethereum and Ripple look like the next “Bitcoin” – focusing on how they are able to give users the ability to use “decentralized applications” (DApps) over their underlying networks to gain functionality.

This means that if you look at the next level of “crypto” growth, it will almost certainly come from a variety of platforms that you can identify there.

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