What exactly is cryptocurrency? Simply put, it is a virtual currency that is made possible through the invention of blockchain technology. It is widely used all around the world and is preferred by many people because of its secretive nature. Most cryptocurrency transactions are always kept anonymous and are not revealed to anyone. There are a number of different types of cryptocurrencies available.
Almost everyone seems to know a little bit about cryptocurrencies, but most don’t actually know what they are, or how the technology works. In total, it is rather complicated and hard to explain, but there are some simple facts that just about anyone can absorb and use as a foundation for deeper analysis. I will attempt to help enlighten you readers as simply as I possibly can.
Here are some simple yet major points about this new type of currency:
- Cryptocurrency is an electronically generated virtual currency that derives value from scarcity, confidence, and community involvement. Think about communities such as steemit that create value and participation. Or how mining communities add to the value of the currencies they mine.
- Cryptocurrency was created by blockchain technology, which acts as a proofing ledger that is totally public and decentralized, yet anonymous if so desired.
- There is no formal or governmental ‘legal’ validation like the traditional bank issued and central bank created fiat currency you can find in every part of our modern world.
- Cryptocurrency is a calculable and finite form of currency. There is a public record of how much of the cryptocurrency is in circulation at present, and how much there can be in total.
- You do not require a mediator, bank or any the third party to get involved in trading and using cryptocurrency.
- Most cryptocurrencies and all the transactions made with them are beyond the reach of government and the parasitic bureaucrats that plague our lives otherwise.
- The value and price of the major cryptocurrencies keep fluctuating and are currently the most volatile form of currency on the planet. The exchange rates also change from time to time. That is the main reason it is considered a great way to make easy money.
- The pricing and rates of the cryptocurrencies are totally proportional to its demand in the public and the number of coins that have been used in total. Community drives the value, not central banks or powerful oligarchs.
- There is a large number of different types of cryptocurrency available. The usage terms for all of them are about the same. Bitcoin is one of the most popularly known forms of cryptocurrency, but it is not the latest technology. While Bitcoin is the most valued, there are many others that are steadily moving up and showing great promise. Some are even far better technologically!
- You can theoretically make a lot of “easy” money with the help of investments made in cryptocurrency. Just be careful because it involves great risks just like any other investment.
- You can easily make transactions using cryptocurrency anywhere in the world without having to go through a big hassle, a bank, or any third party at all!
A few more words to consider
Cryptocurrency is a literal goldmine for some people, since it can be a really easy way to make money. Most people find the whole concept of cryptocurrency fascinating, which lends to its overall power and mass appeal. That is what makes it so volatile and mysterious to most people, and what keeps it from advancing more rapidly.
If you are going to delve into this vast market, you need to study and learn a lot more. Keep reading this site and blog, and don’t be afraid to leave comments or questions! Engage your community and participate, you won’t be sorry that you did!