What Is Cryptocurrency, What Is Bitcoin? 2018
What is Cryptocurrency? Cryptocurrency is a digital/online form of currency or money system which allows people to send and receive money across the globe, without having to deal with a bank or anyone else. Cryptocurrency is meant to be handled in a peer to peer transaction meaning person to person. All cryptocurrencies are secured and based by cryptography . So far there are over 1000 cryptocurrencies including Litecoin, Ethereum, Monero, Dogecoin, Ripple and Dashcoin but none of them would be in existence if it were not for the number 1 coin of them all Bitcoin. When I say number one I literally mean that. Bitcoin has a market cap as of today January 4th, of $257,487,224,614 and has a record of 320,242,000,000 USD. That’s almost what the biggest companies in the world are worth including Microsoft, Google, Facebook and Tencent. The shocking thing is this occurred in less than 2 years. Why? You must be asking yourself, why all the hype about Bitcoin? It’s because it was the first Cryptocurrency invented about 2008(by the way in 2008 one Bitcoin was worth less than a penny, but in 2017 one Btc has an average Value of $14,000USD. Had it been Litecoin or any other it would have been the same fate for them, a staggering high market cap. Majority of cryptocurrencies are based on the bitcoin platform but not all. Some say that Bitcoin has become too much of a market driven coin and want to stray from that. Speaking of market cap, I will also be posting a short tutorial on how to use coinmarketcap.com; the best source for Cryptocurrency stats. The Founder of Bitcoin, so called Satoshi Nakamoto remains unknown so I’mma leave it at that. The man ain’t want nobody to off him so I’mma leave him be. So now you must be saying to yourself um ok so “some unknown dude just came up with an idea for online money and backed it up with one of the highest level of security features in technology and the product is now worth over quarter of a trillion dollars?” Wellllll yes lol, you see as I said earlier, cryptocurrency transactions are meant to be peer to peer. This is what truly gives these 1000 plus cryptocurrencies including their Godfather Bitcoin the value that they have today.
Cryptocurrency brings the possibility of anonymity when it comes to transacting financially. One of the key differences of using Bitcoin to regular money online is that Bitcoin can be used without having to link your identity unless you choose to link your name to a bitcoin address which I would highly advise not to do. It is almost impossible to tell who owns a bitcoin address. This is something many people have been longing for, not having intermediaries all in their business. Some say that Cryptocurrencies are used by hackers and fraudsters only. Let me be frank, if you believe that don’t even bother watching this video because it will be a waste of your time. Because to understand cryptocurrency you must understand firstly the money that we use on a daily basis, what it is and how it’s being used every second.
Ok so you kind of understand the cryptocurrency dilemma a little better now right? Now you want to know how you can participate in the crypto market world asap. You’ve been hearing or reading around that it might be too late to get in the Crypto world. Let me just say this point blank: Which ever website you read that from or whoever told you that, get that person or website out of your life. Now that you got the bullshit out of the way let’s get into some technical stuff here; how cryptocurrency really work, how you earn it, how you store it when it’s earned or bought, how to protect it and also why go through making sure they’re always protected.
A. The Technical bits of Cryptocurrency. There are two main parts to this, the first being The Blockchain Technology and secondly Mining: which is something we will talk about in just a minute. So, what is The Blockchain? The Blockchain is a record of all transactions that have taken place in the Bitcoin network or other cryptocurrencies using Blockchain Technology. The Blockchain is the online version of a Bank’s ledger but instead it is 1 billion times more secure. It keeps track of new Bitcoins and Cryptos that are generated and always keeps track of who has how much money at all times. With your typical Bank ledger, a teller or anyone in a higher position can easily add or remove an entry but with Blockchain once the transaction goes through all confirmations, that entry can never be edited.
B. How are Bitcoins and other Cryptocurrencies earned or bought? Remember earlier I mentioned Mining well this is the second biggest factor when it comes to crypto world. This is how people like you and I can get our hands on some online Coin, in case you’re confused that’s another name for cryptocurrency or Crypto Coin. So, how does mining work? Well to create a bitcoin or any other coin, computers and now a day’s smartphone devices can run a mining software or in geek wording a specialized software designed to solve a very difficult mathematical puzzle, because of how complicated this math problem is, they must be calculated using very powerful processors such as CPU’S (e.g.) laptops, computers, graphic cards or GPU or to be more specific; an ASIC specialised machine for mining. As long as you own any of these above-mentioned devices you are well on your way to earning crypto coins without investing a cent, well depending on your machine and where you live the electricity could be high due to all that processing power. I will post a video dedicated to mining on the channel so just Subscribe and you will know everything you have to. Ok! So, let’s say you want to start mining some coin.
In the above go to minergate and show ant miner pics
You have two choices as a miner, you could build your own mining rig or you could join other miners in something called a mining pool. Remember mining a coin takes a lot of processing power because of the difficulty of the math puzzle. You get paid in coin when the puzzle is solved or in mining terms when the “block” has been confirmed. And of course, if you’re not interested at all in mining because you’ve read it’s a waste of time and you got some money to go around then by all means just buy your Bitcoin or other Cryptocurrency on an exchange with your credit card or PayPal, there are many different ways of purchasing coins.
C. So now you’re mining or you have some money to buy 1 or some coin, for this example let’s just use Bitcoin, how do you store it and is it safe? This is where the word wallet comes in. A Bitcoin wallet provides a handy way to track of your public and private address. You can have as many Bitcoin wallets as you wish. A wallet’s security is also based on cryptography. When you have a Bitcoin wallet you basically have are your own bank. It is almost impossible to lose your coin unless the wallet provider crashes or your coins get stolen through not being able to secure them well enough.