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Basics about Crypto

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Introduction to Cryptocurrency

We all have our own unique reasons for using Bitcoin or Cryptocurrencies. You can purchase items with Cryptocurrency, you can gamble with Cryptocurrency and you can trade or speculate with Cryptocurrency. Traditional investors can also invest in particular Cryptocurrency tokens which provide staking, dividends or further benefits with derive financial gain for those who own them. An overwhelming majority of people are using Cryptocurrency in order to generate financial gain, a passive income or simply to create high personal wealth over time. Perhaps one of the smartest ways to use Cryptocurrency would be to apply professional automated investing techniques which protect your wealth and enhance it through profitable trading.

What is Bitcoin?

Bitcoin is a digital cash system, launched in 2009 by Satoshi Nakamoto. Unlike the currencies you’re used to, there is no central bank controlling it. Instead, the financial system in Bitcoin is run by many thousands of computers, networked and distributed around the world. Anyone can participate in the ecosystem as long as they have an internet connection!

Bitcoin was actually the first ever cryptocurrency to exist. It was first announced in 2008 and officially launched in 2009. It provides users with the ability to send and receive digital money called bitcoins, with a lower-case b, or simply known as BTC. What makes Cryptocurrency and Bitcoin especially attractive is that it cannot be censored by anyone, also Cryptocurrency funds cannot be spent more than once, and transactions can be made at any time, from anywhere for a much lower cost than traditional banking methods. Plus, you have the added benefit of travelling anywhere in the world with your funds safely secured in a digital wallet that takes up zero physical space!

What can I use Cryptocurrency For?

We all have our own unique reasons for using Bitcoin or Cryptocurrencies. You can purchase items with Cryptocurrency, you can gamble with Cryptocurrency and you can trade or speculate with Cryptocurrency. Traditional investors can also invest in particular Cryptocurrency tokens which provide staking, dividends or further benefits with derive financial gain for those who own them. An overwhelming majority of people are using Cryptocurrency in order to generate financial gain, a passive income or simply to create high personal wealth over time. Perhaps one of the smartest ways to use Cryptocurrency would be to apply professional automated investing techniques which protect your wealth and enhance it through profitable trading.

What makes Cryptocurrency so valuable?

Cryptocurrency is decentralized, censorship-resistant, secure, and borderless. This quality has made it appealing for use cases such as international remittance and payments where individuals don’t want to reveal their identities (as they would with a debit or credit card).

Many don’t spend their bitcoins, instead choosing to invest them or hold them for the long-term (also known as hodling). Bitcoin is essentially digital gold, due to it having a definitive and finite supply of coins available; once the last coin is mined there will be no more. Like any financial system, if you alter the nature of the supply Vs the demand large scale price changes are bound to happen, hence so many people having an interest to get involved and take a piece of the potential gains.

Some investors view Bitcoin as only a secure store of value. Because it’s scarce and difficult to produce, it has easy similarities to precious metals like platinum, titanium, gold or silver.

We believe that these clear characteristics along with combined global availability and high liquidity make Cryptocurrency an ideal medium for storing personal wealth and expanding wealth. This is also due to the nature of the price for Cryptocurrency; the prices are clearly rising over time.

How does a Cryptocurrency transaction work?

When Lucy makes a transaction to Daniel, she isn’t sending money in the normal way you would expect. This is not a digital version of Lucy handing Daniel a single Dollar bill.

The process is actually more like her writing on a sheet of paper (that everyone in the world can see) that she’s sending one dollar to Daniel. When Daniel goes to send those same funds to Shelley in a new transaction, Shelley can see that Daniel has them by looking at the sheet. This sheet is called the Blockchain Ledger – Network participants all have the identical info of this stored on their devices. The participants connect in real timeto synchronize new information.

When any user makes a transaction or payment, they broadcast it directly to the network, there is no bank or middle man institution to process such transfers, it is completely de-centralized. In order to add new information, the blockchain uses a special mechanism called mining. It is through this process that new blocks of transactions are recorded in the blockchain, new coins are freshly created and transaction analysis can be completed.

What is the blockchain?

The blockchain is a ledger that is append-only: data can only be added to it never removed. Every action will be able to be viewed forever. Once new information is added, it is impossible to modify or delete it. The blockchain enforces this by including a pointer to the previous block in every subsequent block.

The pointer is a hash of the previous block. Hashing involves data transferring through a one-way system to produce a unique “fingerprint” of the input. If the data is modified even slightly, the fingerprint will look completely different. Since blocks are all chained together, there is no way for someone to edit an old entry without invalidating the blocks that follow, which means in simple terms you cannot fraudulently create a transaction, cancel a transaction once it is sent, double spend the same coin or attempt to interfere with the standard processes. This is the most secure way to transfer and hold funds in the world today. This amazing structure is the component making the entire blockchain totally secure.

Is Cryptocurrency legal?

Cryptocurrency is perfectly legal. There are a handful of exceptions, such as Iran or N. Korea.

Government entities take varying stances to it where taxation and compliance are concerned, it is a new asset class and new market, so regulation and licensing by global authorities are still playing catch up. The regulatory landscape is still highly underdeveloped overall and will likely change considerably in the coming years. It is always advisable to consult a financial accounting professional should your gains with Cryptocurrency exceed an amount of $10,000.

But who created Cryptocurrency? Satoshi who?

Welcome to one of the most fantastic modern mysteries in the world! The truth is, nobody knows who it was that really created bitcoin or the Cryptocurrency system.The original creator used the pseudonym Satoshi Nakamoto, but we don’t know anything about their identity and it is clearly a fake name alias. Conspiracy theorists point at everyone from governments to aliens, all we do know is that Satoshi could be just the one person or perhaps a vast group of creative technicians based anywhere in the world. The name is of Japanese intent and origin of course; however most theorize that Satoshi is originally from a Western English speaking country.

The very first Bitcoin white paper (system as a scientific paper and detailed outline) as well as the software were first published by Satoshi Nakamoto. However, the mysterious creator disappeared in 2010 never to be seen from or heard from again!