Are you trying to understand exactly what crypto-currency is? You may have just recently heard about the price of Bitcoin sky rocketing.
What Is Crypto-Currency?
You’ve probably at least heard of Bitcoin right? Well, Bitcoin is what is known as cryptocurrency. Cryptocurrency or ‘Crypto’ for short is basically the future of money for a few reasons. It’s safer than what we use now (banks and even Paypal are hacked constantly) and we also take power back from the banks and governments for ourselves. There are virtually no fees with cryptocurrency and it can also help very poor countries who don’t have access to banks. Check out the video below to help you understand..
Who Invented Cryptocurrency?
In 2008, someone possibly named Satoshi Nakamoto uploaded a whitepaper to a cryptology mailing list that was entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.” He outlined the concept of this cryptocurrency, which uses no central bank or authority to allow financial transactions between two anonymous people. Amazingly, no-one knows exactly who he is. After Bitcoin was up-and-running, his communications became very limited, and then he disappeared altogether in mid-2010. Meanwhile, the value of Bitcoins have steadily soared, leading to speculation that, whoever he is, is probably very wealthy. While Bitcoin was something revolutionary, perhaps he never imagined the industry would literally explode. There are now more than 500 different coins, each with it’s own story and it’s own solutions.
What Is ‘Mining?’
‘Mining’ is basically a computer cracking a cryptocurrency code to produce a coin. That’s how the coins are ‘made’. Bitcoins for example are created each time a user discovers a new block. The rate of block creation is approximately constant over time: around 6 per hour. The number of coins such as Bitcoin generated per block is set to decrease geometrically, with a 50% reduction every four years. The result is that the number of Bitcoins in existence will never exceed 21 million. This decreasing-supply algorithm was chosen for Bitcoin because it approximates the rate at which commodities like gold are mined. Users who use their computers to perform calculations to discover a block are thus called Miners. The below image is an example of a large ‘Mine’. People all over the world are spending millions and setting up huge mining facilities to get Bitcoins for themselves. It’s an absolute revolution.
What is the Blockchain?
How Significant really is Cryptocurrency?
In my opinion it’s very significant but it’s just such early days. Just like email destroyed mail and ebooks destroyed physical book stores, I strongly believe that cryptocurrencies are the next BIG thing that will make the current banking system that we all know, eventually lose it’s power over the world. We are currently transitioning from super early adopter phase to early adopter phase so the opportunity is right now!
Check out these articles on crypto below:
The Benefits of Cryptocurrency
- A fully decentralized system, where there are no banks controlling our hard earned money. The people take the power back!
- Send funds around the world within minutes with no fees, and no-one who can revert the payment or tell you that you can’t do it.
- Money becomes your business and nobody ever knows how much you have and what you are doing with it. There is no one who can take your hard earned money or track it. Not even authorities like the CIA, FBI or MI6 – they must be in great fear of crypto but there is nothing they can do to stop it!
- It can help poor countries dramatically as only 40% of the world have access to a bank – where as 80% have access to a mobile phone!
- Much more secure than keeping your money in a bank or merchant!
In a nutshell, that’s what crypto-currency is. If you’d like to buy some bitcoin and hang on to it for 10 years, I’d highly recommend it. You can visit www.coinjar.com to buy some.