Economics is boring is famous myth but you believe or not your life depends on it.
Source:
https://www.pexels.com/photo/six-10-euro-banknotes-45708/
WAR
POVERTY
REVOLUTION
They all need one key concept MONEY, that is a thing which Sometimes make a man into a Devil, like it or not money define social status.
Sometimes it compromise Morals, some people spend their lives chasing these rectangular papers. Some are willing to fight or even kill for it.
Are we headed towards the end of money?
But now we are going to transfer our single penny into digital binaries, I should say into Cryptocurrency.
Is Cryptocurrency the new gold for the future or is it a gamble?
My today’s article is about these questions.
What the internet did for information same the digital currency doing for the money. It is revolution in transactions and eliminating banking.
There is record breaking news about the Cryptocurrency, your friends and colleagues are talking about it every day, they want to invest their money in it, What you do in this situation?
You should Weigh the pros and cons; first understand where you are putting your money.
That where the problem came, even most of us never understand the handling of our money you know it’s a life skill which you were not taught in your school, beyond the basic computing.
Now money has changed its form, and that’s what we are going to understand today.
Let’s start to know 3 basic concepts
1_Bitcoin
2_Blockchain
3_Crypto currency
•BITCOIN: It is the best known Cryptocurrency, Digital and decentralized currency.
It exists electronically as computer code.
Source:
https://www.pexels.com/photo/person-holding-round-silver-coin-7708815/
•Crypto Currency: It is Medium of exchange for Bitcoin, Crypto Means Data is ‘Encryption’
It ensures security of transactions and It has no physical counterpart.
Source:
https://www.pexels.com/photo/four-assorted-cryptocurrency-coins-843700/
•Block chain: It enables existence of crypto currencies and Operates across vast network of computers. It has not only exclusive to bitcoin and crypto but it has many more uses too.
Source:
https://www.pexels.com/photo/marketing-man-laptop-internet-7567236/
This is everything which we don’t understand about the E-currency. Don’t lose your had if you don’t understand about it because a research told us about the people who has invested in their money and what they know about the here is below.
About Bitcoin
Yet no one knows actual who created that Bitcoin? It has been in circulation since 2009, the identity of creator of That unique E-currency is mystery.
By the years many people claim that SATOSHI NAKAMOTO is creator of it but still there is not clarity whether creator is one person or group of people no one really knows.
What Nakamoto did he saw the healthy potential in digital banking, DOUBLE SPENDING
What is double spending?
Let’s explain that with a little example: If a person buys a sandwich its worth is 10$, they can’t pay same bill to anywhere else. But when the same amount is paid digitally some people can manipulate system and spend the same 10$ to more than once.
That is in simple words is double spending.
For stopping you have banks and credit cards to watching all the transactions that you make and they prove that you have already paid for something at the same time they take their own cut from your money.
In Bitcoin both these fiddly problems like I said it is decentralize meaning there is not third party controlling it instead it is regulated by its own community members, all of members are recording all of their transactions at the same time.
Any attempt to fool the community of bitcoin will noticed quick. And payment goes rejected.
No single
User
Government
Bank
Credit card companies
Can force you any fees on your payment or control its flow and Bitcoin is said to be secure in the face of currency debasement and inflation.
Bitcoin’s transactions are irreversible once you paid you will not reverse any penny back and its extremely volatile its value keeps fluctuating.
The price of Bitcoin is depends of demand and supply, when the demands increases prices go up. When the people see that price is going up they are selling their own Bitcoin and get benefit. Problem No 1 is fluctuation.
Problem No 2 is Security: The digital wallets which keeps Bitcoin are stored in phones and computers, and we all know how easy is any hacker’s attack on our mobile phone and computers.
To feel yourself secure Create strong passwords which can be hard to crack and avoid visiting unwanted websites.
The same rules are applied for every other crypto currency, which bring us to a question how many are they?
There are more than 400+ crypto currencies. Why do so many E-currencies are exist? Why not because key software to create a crypto is an open source, which means anyone and everyone can create them.
Picture of different crypto currencies
The values about the bitcoin because people think it has value and they support it buy and sell invest in crypto currency are just respond to craze around it.
Source:
https://www.pexels.com/photo/nature-people-internet-metal-7293788/
In the end;
The future of currency is digital there is no doubt about it but when you invest you must know you’re not just investing your are also gambling and if you are ready to gamble you must be prepare to win or lose.