The world of Cryptocurrency!

Wow! These last few months have been an absolute rollercoaster ride in the world of cryptocurrency. Bitcoin, Ethereum, Litecoin, Ripple and Cardano all seem like foreign languages for someone just entering the cryptocurrency world, but once a person begins to understand decentralized digital currency and the block chain technology that forged the bitcoin, your world view will be forever changed on how this realm is constructed. For the first time in modern history there exist currencies that are not controlled by any one person or institution. I like to say that it is a true democratic currency in which the people decide the value, and the people are able to make transactions with little to no interference from 3^rd party organizations. For example, I can send my brother a large sum of money–who may be somewhere in the Congo–direct funds without a Western Union or bank charging a fee, and I could do this in a matter of minutes! Moreover, before you go creating a Coinbase account (cryptocurrency exchange) and snagging you some Bitcoin, here are a few things you should know about cryptocurrency.

The Origin Story

Bitcoin is the Nike of cryptocurrency, and to make it even more mysterious than it already is, it was created in 2009 by a person or group that goes by the pseudonym Satoshi Nakamoto, who is believed to own about 5% of the world’s bitcoin, which is worth billions! Nakamotoset out to create a digital cash system that utilized a peer to peer network and the byproduct of his (or they) efforts is Bitcoin. Satoshi Nakamoto has not been heard from since 2011 and no one knows if he/she/them will ever return. If I owned that many bitcoins, I don’t think I would return either!

Cryptocurrencies are volatile

Cryptocurrencies have very wild swings. I’ve watched Bitcoin fluctuate between $12000-$18000 in a matter of days and in some cases hours. Albeit, this can mean people are making some big bucks, but it could also lead to major losses if a person is not careful or does not understand the risk associated with investing. As you can see, understanding the unpredictability of cryptocurrencies is important before  forging into the uncharted territory of decentralized currency.

You can use cryptocurrencies to shop!!!

I have a friend that said very smugly, “Call me when you can buy something tangible with Bitcoin.” Well, my dear friend, this blog is for you. There are a lot of places where bitcoins and altcoins (all coins are not bitcoin) are accepted. I found a website that provides 99 places online where you can buy things of value with bitcoin, but here are a few honorable mentions: Overstock, Microsoft, Expedia, Subway and Dell

Blockchain is the future

There are a lot of individuals and organizations that spin a lot of rhetoric about cryptocurrency, specifically bitcoin—since it is the mainstream crypto. They believe that Bitcoin is a giant bubble waiting to burst and send all its into financial disarray. Truth is, nobody knows. And anyone claiming to be 100% sure about anything concerning the economic state of cryptocurrency, which they have no control over, is either a liar or falls victim to their own delusions.  One thing though that critics cannot ignore is the blockchain technology, which is shaping itself to be one of the securest ways to handle transactions, especially as human beings vacillate between wanting complete anonymity while also seeking ultimate transparency. The blockchain technology is simple to explain if you understand how peer to peer file sharing networks have been developing for the past 20yrs.  Now, add a financial ledger, prevention of double spending, and verification simultaneously taking place on decentralized servers and there you have it! I know, I know, it sounds confusing. But if you haven’t be in the piracy game then you may be somewhat clueless, so here’s a video I found on Youtube that has a great visual explanation: Blockchain Explanation

There are thousands of cryptocurrencies!

There are new cryptocurrencies being created every day, each promising a new or better way of utilizing the blockchain technology. The major coins are Bitcoin, Litecoin and Ethereum and the alternative coins (altcoins) like Cardano, Ripple, Monero and Tron are changing the landscape on the investment communities and the tech world. New Jobs, careers, financial institutions, entrepreneurs and jargon are being created because of this technology. So, do some research and expose yourself to this other realm because who knows what your brain can bring to this world.