How "Crypto" Currencies work – a brief overview of Bitcoin, Ethereum and Ripple

“Crypto” – or “crypto currencies” – is a type of software system that provides users with operational functionality via the Internet. These are the most important features of the system decentralized nature – in general block chain database system.

Blockchain and “cryptocurrencies” have recently become key elements of the global zeitgeist; generally as a result of the rise in the “price” of Bitcoin. This has led to millions of people joining the market, and many “Bitcoin exchanges” have come under massive infrastructure stress as demand has increased.

The most important point about crypto is that it does not provide any other material benefit (border operations over the Internet), although it actually serves one purpose. In other words, “intrinsic value” is strictly limited by the ability to deal with other people; Not in maintaining / spreading value (as most people see it).

The most important thing you need to understand is the presence of Bitcoin and the like payment networks – NOT “Currency”. It will be covered more deeply in a second; The most important thing to realize is that “getting rich” with BTC is not about giving people a better economic situation – it’s just about being able to buy “coins” at a lower price and sell them at a higher price.

To do this, when looking at “crypto”, you must first understand how it works and where the “value” is really …

Decentralized Payment Networks …

As mentioned, the main thing to remember about Crypto is that a decentralized payment network. Consider Visa / Mastercard without a central operating system.

This is important because it really emphasizes the real reason why people are starting to take a deeper look at the Bitcoin offer; Bitcoin allows you to send / receive money from anyone anywhere in the world as long as you have a wallet address.

The reason this attributes “price” to different “coins” is the misconception that Bitcoin will somehow give you the ability to make money by being a “crypto” being. Not at all.

The ONLY The way people make money with Bitcoin is due to the “rise” in price – buying “coins” at a cheaper price and selling them at a much higher price. While it worked well for many people, it actually stemmed from a “bigger stupid theory” – essentially saying that if you could “sell” coins, it was a bigger fool than you.

This means that if you want to be associated with the “crypto” space today, the price goes up until you buy any of the “coins” (even “bottom” coins) that are mostly cheap (or cheap) and sell them later. Since none of the “coins” are backed by real-world assets, there is no way to predict when / how it will work.

Growth in the future

Bitcoin is a force expended for all purposes.

The epic rally of December 2017 showed mass acceptance, and if the price continues to rise in the $ 20,000 + range, buying one of the coins today would be a big gamble that would happen.

Smart money looks at the majority of “bottom” coins (Ethereum / Ripple, etc.), which have a relatively small value, but are constantly increasing in price and appropriation. The main thing to consider in the modern “crypto” space is the actual use of different “platform” systems.

Such is the space of fast-paced “technology”; Ethereum & Ripple is similar to the next Bitcoin – focusing on giving users the ability to actually use “decentralized applications” (DApps) on their core networks to access their features. work.

This means that if you look at the next level of “crypto” growth, you will almost certainly come from a variety of platforms that you can identify there.

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