Has anyone ever asked you where to start in cryptocurrency investing? One of the largest effects on the market today is the lack of understanding from new money. I learned this in my effort to spread the opportunity of cryptocurrency. Unique characteristics of block chain technology creates revolutionary opportunities potentially improving multiple aspects of today’s society. Creating a more efficient and honest social structure by reproducing blockchain’s that can be accepted universally. Initially I didn’t quite grasp this concept, however, after a month of detailed research I developed an understanding that allowed me to take the big leap. This article entails the golden nuggets that I collected through my trial and errors of acquiring various coins.
Through my endeavors of trying to explain these concepts to my friends and family. I soon realized that in order to effectively grasp this information, it requires, a paradigm shift. The only way to approach a paradigm shift, is to approach with diligence. This means dedicating time to research and shadowing those who are experts in the industry
The first step in understanding the fundamentals!
Blockchain technology
• You are hinging any investment you make not on the currency but the technology. Research:
o Blockchain
o How bitcoin works wiki
o Cryptography
Coins and technology
• Coins are just a funding representation of the actual company’s` technology edge or contribution to the blockchain. Bitcoin is the most popular coin but lacks the amount of utility that other coins present. I see a lot of potential in alternative coins. research:
o Top 15 coins according to market cap (coinmarketcap.com)
o 5 potential cheap coins to make you money in the future
As you’re doing research you’re going realize that there is a lot of opposing views but don’t take anything to serious every new technology has negatives and positives, your smart phone for instance. Having a smart phone has a lot of great advantages, like the convenience of being able to access the internet from anywhere. However, it is arguable that the overuse of smartphones diluted the quality of in person communication. This exemplifies the difference of perspectives in cryptocurrency. The question is does the positives outweigh the negatives?
Fundamental Negatives
Security Issues
This is a new domain for developers, hence, they are susceptible to hackers.
The network is only as good as the developers creating it and the market must go through adversity to evolve into something that can replace all fiat currency.
Widespread adoption
The decentralization is a direct threat to authorities with centralized power so support has always been a problem with cryptocurrency. Blockchain is also a very hard concept to understand so generally people are mistrustful yet it has proved to successfully acquire organic adoption.
Imperfect Technology
The first coins made are turning out to be less scalable than previously thought. Many coins are experiencing hard forks and changes to the code for real world application.
Important Positives
Artificial Trust
Two parties are able to make an exchange without the oversight of a third party, strongly reducing or even eliminating counterparty risk.
Ecosystem Innovation
The effect this technology is having on human is comparable to when the internet was first created. Innovations that came after the internet was impossible to visualize, blockchain technology is creating possibilities that we can’t even imagine.
Connecting the world
The evolution of communication always creates an evolution of human beings, the better we communicate the easier it is to share ideas.
Transparency and immutability
Changes to public blockchains are publicly viewable by all parties creating transparency, and all transactions are immutable, meaning they cannot be altered or deleted.
Durability, reliability, and longevity
Due to the decentralized networks, blockchain does not have a central point of failure and is better able to withstand malicious attacks.
I’m aware that there are many more positives and negates of cryptocurrency but for the sake of this post I left it to the most important.
Personally, I believe cryptocurrency’s positives greatly outweigh the negatives. I would even go as far as to say that it has the potential to change the whole world in a positive manor. But the truth is there is no way to communicate this to you so I urge everyone to do their own research.
Thank you for reading this and I hope it has been beneficial!
If you would like me to keep sharing content, please upvote and share!
Sincerely,
Alexander Lorenzo