Economics is boring this is a lie we have been told all our lives but excepted or not but our life depends on it.
War, poverty, and Revolution all are hinge on economics which itself rests on one key concept money the ultimate catalyst for the worse than the best of humans Endeavour like it or not money defines a social status it also compromises our morals sometimes some people spend their lives chasing these rectangular pieces of paper some are willing to fight even kill for it but are we headed towards the end of money as we know it will we have to burn our rupees dollars or euros transform every single penny we have into digital binary or should I say to cryptocurrency is it really the new gold the future of money or is it gambling a recipe for financial disaster if these are the questions given asking yourself I have a story to share.
What the internet did for information digital currencies doing for money it is revolutionizing transactions and eliminating banking not a weak Goes by when cryptocurrencies do not dominate the news there are record-breaking price urges every other day your colleague won’t stop talking about it your friend want you to invest what do you weigh the pros and cons understand where you’re putting your money and that’s where the problem lies most of us do not understand money and its handling its a life skill we will not be taught in school be on the basic computing now if money changes form the first thing you try to do is understand it and that’s what will do today and if you are worried that we are going to get too technical do not it’s all play in English let’s start with the understanding three Basic concept Bitcoin blockchain and cryptocurrency what did they mean here are some quick definitions
The first Bitcoin is the name of the best-known cryptocurrency like the euro is the name of one type of currency Bitcoin is digital and decentralized it exists electronically its a computer code only and ill explain a bit for now
The second definition of cryptocurrency is the medium of exchange for Bitcoin just as notes and coins of rupees dollar Crypto means data encryption it basically shows the security of transactions now you may have heard about your messages being encrypted it means security the same for Crypto its encrypted data but unlike debit and credit card cryptocurrency has no physical counterpart its the only form its existed
The third definition is blockchain the innovation empowers the presence of digital currencies to think about it like a PC document that stores information yet this is a record across a huge organization of PCs and it’s not restrictive to Bitcoin and Crypto trade has numerous many purposes this is only one of them so just put this is all that we don’t comprehend about cash joined with all that we don’t figure out about innovation.
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What is Cryptocurrency? | Crypto News | Crypto Market
I don’t lose your head if you do not get it because most people don’t and surveys have shown this only one out of ten people understand how digital currency is work and one out of three cryptographic money financial backers themselves know hardly anything about it take Bitcoin, for example, nobody even realizes who made it has been available for use starting around 2009 but the identity of its creator or creators remains a mystery to this day over the years many people of claim to be or have been called Nakamoto but there is still no clarity whether it’s one person or a group of people no one really knows what Nakamoto did though solved a potential flow in digital banking double spending now what’s that? let me explain with example if a person buys a sandwich worth $10 for instance they cannot spend that same 10 dollar bill anywhere else but when the same amount is paid digitally some people can manipulate system and spend the same $10 more than once and that in simple word is double spending to stop this from happening you have banks and credit card companies acting as middleman so they watch for the transactions that you make and they prove that you’ve already paid for something at the same time it they take their own cut off the transactions that you make and the Bitcoin it solves both the problem like it is decentralized important thing is there is no outsider controlling it rather it is directed by its own local area of client and every one of them record each of their exchanges simultaneously any endeavors to trick the Bitcoin people group will likely to get in noticed and the payment will get rejected no single user of government of Bank or credit card company can force a fee on your payment of control its flow plus Bitcoin is said to be secure from the effects of currency the basement and inflation that sounds perfect doesn’t it ? will it isn’t Bitcoin is not without problem the transactions are Irreversible once you’ve paid you’ve paid you will not get a penny back plus IT is extremely volatile the value keeps fluctuating on the 14th of April it was worth 63000 US dollars for 1 Bitcoin on the 23rd April it sank below 50000 dollars why does it happen? if you see like everything else the price of Bitcoin is driven by demand and supply when the demand increases the price in Go up but people see the price going up the feel like catching in so they try to sell their own Bitcoin and this leads to more people wanted to sell but sometimes there are not enough buyers so they lower the prices and it goes like a roller coaster ride so fluctuation is problem number one.
Second problem has to do with security the digital wallets containing Bitcoin are stored in phones and computers and we all know how vulnerable these are for hackers in 2016 a Los Angeles Hospital ended up spending 17000 US dollars on illegal transactions after hackers took control to its computers for more than a week so if you have a good amount of money invested in Bitcoin create passwords that are difficult to get also stop visiting those viered and suspicious website the same rules apply for every other cryptocurrency which brings us to the question how many are there 4000+ more than 4000 cryptocurrency in the world why do so many of them in this because why not the key software to create a crypto is open source which basically means anyone and everyone can create them for their flight Ripple, Prime Coin, Magic Coin, and Doge Coin cryptocurrency that started off as a meme it is now become mainstream in 2013 to software engineers use the image of a dog and made this cryptocurrency as a joke to make fun of her people how would invest in anything guess what people did just that on the 28th of April doge coins market capitalisation search to more than 50 Billion Dollars it ended up being worth more than Ford all thanks to do doge coin supporters who used # and socialmedia post to fuel its price.
This is both laughable and fascinating it tells you about the times a living in online where the campaigns can have a surprisingly big impact on the market price of anything and age web parody can be turned into a real asset doge coin is worth 50 Billion Dollars because people believe it is worth 50 Billion Dollars you know what they said about the power What you believe in perhaps this vas it the same in the case of Bitcoin the fundamental reason it has value is because people agree it has value think of it like this shoes with human blood their worth 1000 dollars why because it’s manufacturer thought someone would pay $1000 for such shoes by the way was absolutely right because all the shoes and sold out what does this tell you ?that the vast majority of people investing in cryptocurrency are just responding to the craze around it they giving it a shot what about government UK is working on something called Britcoin Russia does not recognise cryptocurrency China crack down on it but then it shifted position now Beijing cause it alternative investment in India cryptocurrency is not legal tender but their are people who invest in it because people around them do it the bottom line is this the future of currency is digital there is no doubt about it but when you invest you must know that you are not just investing you are also gambling and if you’re ready to gamble you must also be prepared to win or lose.
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