Bitcoin blockchain dogecoin ethereum nfts everyone is talking about cryptocurrencies right now but what does it all mean soIn this article I will take you from crypto noob to cryptogenius i’m going to tell you why this is becoming more important and the dark side of crypto.
A Brief History of Money
Stage One – Barter System
When society was in its early days there was no such thing as money that we call it the only way to buy something from someone was to go to them and that was I like your horse I will trade you my cat I will never trade with you but the problem with such a system is that although you would be perfectly happy to part with your horse you probably wouldn’t want the cat so the trade never happens.
Stage Two – Precious Metals as Currency
But that’s where currency came from, the second phase coins, which were made of valuable materials like gold and silver, so everyone accepted that they had value, you’ve probably heard of the British pound, well, the reason they were called pounds is because a pound was just a pound of silver.
Stage Three – Paper Money and Trust in Government
So suddenly in a trade it doesn’t matter that you don’t want my cat as long as I have the coins we can trade for your horse even if you don’t have any use for the silver because it’s a valuable material that you’re sure you can give that coin to someone else and trade for what you want easily but then it developed into the third stage when banks were established and governments took control we realized that as long as there was trust in the system we could get away with the need to transfer blocks of precious metal to some other convenient paper. money
Stage Four – The Digital Era
It does the same thing, but it has no value now because it is made of pure silver it only has value because the government says it is worth the same as the 10-pound note Here in the UK it is just made of well it is plastic; they have recently replaced it because it is more durable, but if you look closely you can see that the Bank of England promises to pay the holder of this note 10 pounds, it is just a receipt that is proof that you have a certain amount of money.
Enter Cryptocurrency – Stage Five
The Basics
As technologies have improved further, we’ve found even easier ways to store and trade our goods, which I would call stage four, where more people than ever are buying things online and using credit cards, and, when you’re at that stage, we don’t see our money. It’s not about coins or bills or cats. It’s just entries on a spreadsheet.
What Is Cryptocurrency?
So the reason I gave you this whole introduction is to give you the context of where cryptocurrency sits in what many have seen as the easiest era of exchange. The way to think about cryptocurrency in the fifth stage is that it is 100% virtual. I know the Bitcoin logo looks like a physical coin, now it’s a small coin, but with crypto, there is no gold, no silver, no paper, it’s just a transfer of digital assets.
How It Works
The Ledger System
The basic concept is the same, think of them as literally just spreadsheets running who has paid what to whom, but instead of multiple banks keeping their separate records with crypto, there is just one big spreadsheet of every transaction made using that currency, and it’s called a ledger.
Mining and Decentralization
We all have a nice spreadsheet, but what’s the fuss about why everyone is going crazy about crypto? There are some distinct advantages to such a currency system, such as it being decentralized, which means that when every transaction of a given cryptocurrency is recorded on a ledger, there are many copies of it that are part of that network and those whoever are part of it.
Security via Multiple Copies
You may have heard of cryptocurrency mining or Bitcoin mining, well, it’s all about setting up a computer to crunch through transactions on your own copy of that ledger or spreadsheet, there are already about a million Bitcoin miners around the world.
Why People Believe in Crypto
Global Access and No Banks
I think people believe in it because they see the future as open, traceable transactions. There are many areas in the world where there is internet access, which is all you need for crypto, but there is no access to traditional banks.
Instant and Borderless Transactions
I’ve already explained what that means, but the main advantage of crypto is that you don’t need banks, it takes half a day with no spending limits, plus you don’t have to worry about exchange rates.
Blockchain Technology
What Is Blockchain?
The reason cryptocurrencies are called cryptocurrencies is that they are secured by cryptography… Blockchain is not Bitcoin. Blockchain itself is not a currency, blockchain is just a secure type of ledger.
How Blockchain Prevents Tampering
So every time I pay for something with Bitcoin, that transaction is recorded as a block, each block contains transaction data like who was paid and how much. If something is changed in a block, the hash of that block will change.
Investing in Cryptocurrency
Going to the Moon
You’ve probably heard that people are investing in cryptocurrencies. There’s a term for cryptocurrencies that goes like this: “Moonrise” or “Moonrise”.
My Portfolio (Not Financial Advice)
So I’ll show you what I did, and disclaimer, this is in no way financial advice. So I put 40 into Ethereum, 20 into Polygon, 20 into Cardano, 10 into Cartesi, and 10 into Litecoin…
The Dark Side of Cryptocurrency
Volatility
Crypto is in a very strange place right now, and that brings me to the problem with it.. The dark side, which is an important side, is exactly that.. I think the reason a lot of people don’t take crypto seriously is because of its volatility.
Lack of Widespread Adoption
The fact is that they are not accepted as a form of payment, well, in most places…
Environmental Concerns
There may be environmental concerns. That high computing power requires a lot of electricity…
Potential for Criminal Use
And four, there’s also a very strong sentiment that because there’s no real policing or regulation of crypto right now, it’s like the perfect currency for criminals…
The World of NFTs
What Are NFTs?
You may have heard of an NFT, a non-fungible token. If you don’t have one, you might want to get a seat for one… You can pay to take digital ownership of something…
The Value of Digital Ownership
As many of these NFTs are just JPEG images… An NFT of this Gucci ghost sold for 3,600… This image, which is a preview of a man’s artwork, sold for $69 million.
Meme Coins and Dogecoin
Dogecoin – The Joke That Paid Off. And finally, you’ve probably heard of Dogecoin Dirtcoin is based on the same technology as Litecoin. Ublii, ld was created as a joke… which has driven its value to the point where we now have people who have become millionaires simply because they bought Dogecoin when it was cheap…
