A cryptocurrency guide in simple English
While the world is watching.
Bitcoin’s ownership has been shrouded in secrecy, but the concept is anything but. What is Bitcoin and how does it relate to cash flow? Is it a passing fad or is it here to stay? Will it go big before it goes bust? Understand some of the terminology and process behind the conversation.
Crash or currency?
Bitcoin started as a hacker’s method of payment and has evolved into a new form of digital currency. Called cryptocurrency, it’s a form of asset that has absolutely no traditional backing, tangible coinage or bank affiliation, yet it’s as real as it gets.
In a digital age, it’s important to make note of how money has evolved. Dollar bills are FDIC insured, yet the concept of ‘backed by gold’ is long gone. Online shopping has created a world of mobile transaction and fluidity, with very few consumers using cash as a form of shopping. Money is quickly becoming a thing of digits, as opposed to an actual cash flow.
Standard currencies are traditionally stored by banking. Mobile banking is often available, but complications include:
Bank holidays and early closings
Currency exchange fees and delays
Timeframe for money wiring
Cryptocurrencies are instant and have zero currency exchange rates because they are simply a transfer of value. Since no bank or entity actually moderates the currency flow, a public blockchain software operates based on universal wallet approvals for monetary transfers.
A blockchain is a traceable software of digital currency which is similar to a voting process. While completely automated by the internet, it goes through approvals of its entire connectivity of data and users for every currency transfer.
This January, the ever popular currency dropped from a record 20K to its current low of 11K. Is it a definite crash or is it just a bump in the road?
Modern renaissance age.
While it may seem as if digital currencies, also known as cryptocurrencies, are a futuristic approach to finance, it seems like the internet is taking us back to the age of the Renaissance. Bitcoins are the value exchange, pretty much like the trade transfers of ancient times.
What makes an item an asset? The amount that people would pay for it. It’s how the cryptocurrencies are measured for estimated value.
A cryptocurrency is an independently operated form of digital currency which is validated via a series of verified transfers and encryption techniques.
Already own bitcoin or interested in monitoring its progress?
Coinbase is an app which operates on a similar platform as the Stock Exchange. It’s a user friendly way to be in control of purchases and rates for bitcoin and its sister companies.
Monitor your cryptocurrency growth and activity.
Set alerts to your specification.
Purchase currency in its gateway integration.
Multi manage currencies: Bitcoin/ Ethereum/ Litecoin/ Bitcoin Cash.
Bitcoin can be explained in terms of loyalty points. Instead of just for a particular airline or retail chain, your points are a universal form of recognized cash flow for payments and assets.
Bitcoin started in 2009 by a code name, Satoshi Nakamoto.
There’s some theory that the actual founder is Elon Musk, inventor of the Hyperloop.
Bitcoin’s process is completely anonymous, with no need to enter real names or data.
Bitcoin’s current rate is 11K, after a recent drop.
Similar cryptocurrencies are also on the rise and may be wise investment opportunities.
The future of Bitcoin is somewhat unknown. For now, it’s losing popularity and gaining speculation. Experts are predicting a rather unstable future for the cryptocurrency, it may be too early to know. Will the concept become the new norm or will it end as quickly as it all started? We may not be certain yet, but some investment specialists say there’s money to be made in the process.
Are you banking on it?