Cryptocurrency Basics

PURA Coin - Cryptocurrency Basics

The ABC’s of cryptocurrencies
Getting from A to B…
PURA Vida everyone! As it seems cryptocurrencies have been entering a phase of consolidation on the road towards mass adoption, we are continuing our series on cryptocurrency terminology. There is already a wealth of information available, still we want to break down information even more for you to meet all needs. Also, let us know what you think of the soft changes we have made to our PURA website!

What is a better way to keep in the swing of things of the new year than with ABC’s on cryptocurrencies? Refresh the knowledge you already have or start with the basics. Today’s series is going to take you from the letter A right to B in words and expressions of the crypto world.

…with PURA…
A as in Asset.
An asset is a good that is assigned a certain value. In our digital world, handling of digital goods such as software, pictures and songs is getting increasingly easier. However, physical products can also be an asset. In this sense, we still have gold as physical asset but it can easily be traded across the globe. All in all, an asset is a depiction of an item or resource that is of use or value.

B as in Bagholder
This is one that you want to be aware of. In the classic sense, this informal term describes an investor who holds shares that are worthless and whose investment has been lost. This can happen if the investor has not been watching market developments. So he holds on to a losing position for too long in the hope of recouping his investment eventually. In the world of cryptocurrencies, those left “holding the bag” are traders who bought coins at high prices and did not sell on time. This may leave them with coins that have lost in value.

B as in Bitcoin
The mother of cryptocurrencies. Introduction was in 2008 by an author under the name of Satoshi Nakamoto in an article titled “Bitcoin: A peer-to-peer to electronic cash system” outlining the concept underlying a blockchain.

…and blockchain technology…
B as in Blockchain
Blockchain is the technology behind cryptocurrencies such as PURA, Bitcoin and Etherum. A blockchain is a chain of blocks of data, hence the name. Encryption, documentation and storage of data entries, such as cryptocurrency transactions, takes place simultaneously on thousands of devices. A blockchain is a distributed ledger, this means the data sharing and synchronization is across networks based on a principle of consensus.

B as in Bullish
This term is one we usually like to hear. This term originates in trading vocabulary, meaning that a coin is likely on an upward trend and prices are rising. Bullish investors are optimistic about price developments.

So we happily got from A to B today. Make sure you stay tune in for the next session!

(Source: Information is based on an article by Kathrin Stein of Blockchain Magazin 01/2017.)