Hello Steemers!
Today I will explain what Cryptocurrency is and where it is heading.
What is Cryptocurrency?
Cryptocurrency is much like the name implies; a digital currency that you acquire (generally) by having your computer or computers solve highly complex mathematical problems, a process called “mining”. There are of course other ways to acquire currencies such as this wonderful site where you are rewarded Steemcoin for producing content.
Why does it matter?
When the first and most well-known Cryptocurrency Bitcoin came on the scene in 2009 it really didn’t matter much, as it was worth fractions of a penny. A lot of people just thought it was a fad and would die out given time. But Bitcoin (and other Cryptocurrencies) offer many features such as anonymity and mine-ability that separate them from standard fiat currency. So as time went on Bitcoin slowly rose in both popularity and price until 2013 when it had its first major price jump from pennies to hundreds of dollars for a single coin! A year later it was close to 1200$! It then fell in value for a few years after until we get closer to the present… where a single Bitcoin is worth well over 2500$ and it recently reached a new high hitting a whopping 3000$ each.
What makes Bitcoin so valuable?
Well let’s break down some of the features:
Anonymity: Most crypto currencies are either totally anonymous or hard to track, this provides the user and seller security in what they buy or sell. However as time has passed some Cryptocurrencies are now more trackable than they were originally intended, which is allowing newer coins to rise.
Low Fees: When compared to bank fees most Cryptocurrencies offer far better prices across the board.
Fractional: Any Cryptocurrency can be split in almost any conceivable way. For instance you never have to buy a full coin of bitcoin, you could buy as little as a dollar’s worth if you wanted.
Mine-ability: By having your computer act as a node in a network (acting something like how an ATM machine is a single link of a banks chain) and solving complex mathematical puzzles you are rewarded with cryptocurrency. Keep in mind that there is no risk that you can be hacked or lose anything during this process as the data your computer is working with is anonymized, so it is a literal win-win. In a very real sense you can leave your computer on “mining” a coin and make money while you sleep! A lot of people including myself have built computers with the sole purpose of mining a certain coin, these are typically called “Mining Rigs”.
Volatility and Explosive growth:
Having watched the stocks for several years now on and off I can tell you that I have never seen anything like the volatility I have in Cryptocurrencies. While volatility might be scary it is important to realize that there are profits to be made whether you buy a coin when it is cheap or sell another one when it is high. Ultimately volatility is a good thing as you can take advantage of it and make more money. What is more shocking is the EXPLOSIVE GROWTH!!!! I have watched some coins rise thousands of percent in a single day! And larger currencies like Bitcoin and Ethereum double in value. Ethereum was around 40$ in April… today it is well over 300 and has hit a high of 400 recently.
In later posts I will explain how to take advantage of both the Volatility and Growth which can make you some serious cash!
Where is Cryptocurrency going?
CRYPTOCURRENCY IS GOING TO THE FREAKING MOON! Faster than a bat out of hell riding a bullet! Why!? First and foremost are the features mentioned above, but that is not even half of it. The world itself is changing.
Countries around the world are starting to phase out their fiat/paper currency, like Taiwan and India, this can hurt a lot of the poor and cash based businesses so the people are switching to Cryptocoins because everyone has a smartphone or basic computer these days (seriously).
If a country is going through economic turmoil or inflation the people have switched to Crypto coins because they are MORE STABLE and easier to access.
Countries like Japan have actually legalized Coins like Bitcoin and Ripple as legal currency. Other countries like the United States and Russia have started to follow this trend as well.
Cryptocurrency is becoming more and more legitimate and mainstream. In 10 years I believe almost everyone will be using Cryptocurrency in some fashion. Every month it seems that despite any dips or bad news, the price of most Cryptocurrencies rise, as well as the places you can spend them. At this point it is only a matter of time until the entire world jumps on board.