What are CryptoCurrencies ? - A simple explanation.

"Crypto" - or "cryptocurrencies" - is a type of software system that provides transactional functionality to users online. The most important feature of the program is their decentralized nature - which is usually provided by a blockchain database system.

 

Blockchain and “cryptocurrencies” have been major features in zeitgeist global recently; usually due to the "price" of the rise in Bitcoin. This has led millions of people to participate in the market, and most of the "Bitcoin exchanges" are under intense infrastructure pressure as demand grows.

 

The most important point to note about "crypto" is that although it actually has a purpose (online trading of borders), it doesn't provide any other benefits (financial). In other words, its "internal value" is strictly limited to the ability to trade with other people; IT'S NOT about storing / distributing the value (which most people see as real).

 

The most important thing you need to be aware of is that "Bitcoin" and other payment networks although actually serves a purpose (cross-border transactions through the Internet), they DO NOT provide any financial benefit. The most important thing to note is that "getting rich" with BTC is not a matter of giving people any better economic status - it is simply a process of being able to buy "coins" at a lower price and sell them at a higher price.

 

In this case, when you look at "crypto", you first need to understand how it really works, and where its "value" really lies ...

 

Decentralized Payment Network

 As mentioned, the most important thing to remember about "Crypto" is that the payment network is very fragmented. Consider Visa / Mastercard without a centralized processing system.

 

This is important because it highlights the real reason why people are really starting to look at the "Bitcoin" proposal in depth; it gives you the ability to send / receive money to anyone in the world, as long as they have your Bitcoin wallet address.

 

The reason why this shows the "value" of various "currencies" is due to the misunderstanding that "Bitcoin" will somehow give you the ability to make money due to being a "crypto" asset, it does not.

 

THE ONLY way people used to make money with Bitcoin was due to the "increase" in its price - buying "coins" at a lower price, and selling them at a much higher price. Although it worked well for most people, it was actually based on a "big stupid idea" - actually saying that if you could "sell" coins, it was "more stupid" than you.

 

This means that if you want to join the "crypto" space today, you are actually looking to buy any "coins" (even "alt coins" that are cheap or inexpensive), and ride their currency. The price goes up until you sell them later. Because there are no "coins" backed by real-world assets, there is no way to estimate when this will work or if it will work.

 

Future Growth 

For all intents and purposes, "Bitcoin" is the power used.

 

The December 2017 conference saw a huge influx of people, and while its price will continue to grow to $20,000 +, buying one of the coins today will be a major gamble.

 

Smart money is already looking at most of the "alt" coins (Ethereum / Ripple etc.) which are relatively small in value, but are constantly growing in value and acquisition. The key to looking at the modern "crypto" space is the way the various "platform" systems are used.

 

Such is the fast "technical" space; Ethereum and Ripple look like the next "Bitcoin" - with a focus on how they can give users the ability to use "fixed apps" (decentralized applications) over their subnetworks to get the job done.

 

This means that if you look at the next level of "crypto" growth, it will probably appear in various forums that you can identify yourself there.

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