HONG KONG, HONG KONG – As a visual representation of the digital Cryptocurrency,Statistics show that baby boomers are the wealthiest generation in US history. Boomers have collectively earned $3.7 trillion. With all that disposable cash it would seem that dipping into the edgy financial world of cryptocurrency a worthy endeavor. Apparently, there are several reasons boomers are hesitant, least of which is the steep learning curve. So with that in mind, I have decided to delve into this new age money world, aka tokenomics, and disarm it for you in the best boomer layman’s terms I can.
Cryptocurrency starts at the blockchain. The blockchain is a system of online accounting developed by a person or group of people known by the pseudonym, Satoshi Nakamoto. It is an incorruptible (doesn’t that sound promising) digital ledger of transactions.
To make it simple, imagine the blockchain as a spreadsheet that tracks all the transactions ever made. It is duplicated thousands of times across a decentralized network of computers and accessible to anyone on the internet who wants to jump in (could be me..or you). The information held on the spreadsheet aka blockchain or ledger is shared and continually reconciled and readily verifiable by these very same people…aka you or me or hundreds of others. No one governing body is in charge, so no one can alter, fabricate or hack and lots of people are verifying so minimizes the mistakes.
Many people are taking advantage of the blockchain ledgers and becoming miners. The miners – also could be you or me…are generally mathematically inclined. They use software to validate new transactions and record them on the global ledger, ie the blockchain. On average, a block is mined every 10 minutes. The miners do this by solving difficult mathematical problems based on a cryptographic hash algorithm. The solution found is called the Proof-Of-Work. This proof proves that a miner spent a lot of time and resources to solve the problem. When a block is ‘solved’, the transactions contained are considered confirmed. Miners earn rewards like cryptocurrency or transaction fees for every proof credited to them. So, if you are a math whiz this could be a good crypto entry point for you to explore.
But let’s understand what you’re earning first….What is Cryptocurrency.
Cryptocurrency is not actually a coin in the traditional sense but rather entries into the blockchain database that no one can change without fulfilling specific conditions, i.e. the miners doing the mathematical problems. It is called a peer to peer transaction, in other words, a community-driven currency. The currency makers, miners, buyers, and sellers derive the minute to minute value.
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