What The Hell is Cryptocurrency? 13 Things You Need to Know!

January 9, 2018

1. Cryptocurrency is a digital (online) currency that uses an encryption technique (solving algorithms) to control how

    much of the currency there is.

 

2. Some of the most popular Cryptocurrencies are BitcoinRipple, and Ethereum. Bitcoin has 16.7 million coins in

    circulation currently worth $16,400 a coin, meaning the total number of Bitcoin is collectively worth $273.7
    billion (known as its market capitalisation). Ethereum, the second largest, has 99 million coins in circulation

    worth $1200 per coin equaling a value of $117 billion. Ripple, the smallest of the three big cryptocurrencies, has

    48.5 billion coins in circulation at $2.3 a coin worth around $89 billion.

 

3. Cryptocurrencies are acquired through a process called mining. This involves using computers to solve complex

    equations (cryptography) to verify the coin's authenticity and in turn, the miner receives a new coin as a reward for

    this work. As more coins are mined and enter the market, it takes longer and more work to mine newer coins,

    making that cryptocurrency increase in rarity.

 

 

4. In terms of mining, there are places around the world that have warehouses full of mining computers (farms) solving algorithms in a capacity that costs them $36,000/ £26,900 daily in electrical bills!

 

This is where a majority of the cryptocurrency mining is done in the world. (Now you understand why the miners need to be rewarded!)

 

 

 

 

 

 

5. Cryptography is the science and technique behind cryptocurrency: it is the creation of algorithms that are used

    to encrypt and secure information. This encryption technique is used to secure transactions through mining.

 

6. To keep track of all the coins mined and transactions processed most cryptocurrencies use a very

    reliable ledger called Blockchain

 

7. The value of these coins come from their limited amount. Gold, for example, is a limited resource which makes

    it very valuable. Unlike the currency the government produces which is relatively unlimited, cryptocurrencies have

    a fixed amount of coins that can enter the market but no fixed price. As we consume this cryptocurrency and bring

    more coins into the market through mining, the coin becomes more valuable. 

 

8. The purpose of cryptocurrencies in the long term is to deregulate our everyday currency from the government. This

    then allows the currency to be unaffected by economic changes.

 

9. Find the best mining hardware https://www.bitcoinmining.com/bitcoin-mining-hardware/

 

10. To start mining for Bitcoin https://www.bitcoinmining.com/bitcoin-mining-for-beginners-how-to-mine-bitcoins/

 

 

11. Recently, Bitcoin has received the most attention, as its year to date coin price is up 1,500% for 2017. This growth

      is coming from the increase in popularity in the cryptocurrency space. The ease of use for future purchases with

      the virtual coin and the idea that the government can’t regulate this currency creates this popularity.

 

12. To buy Bitcoin and other cryptocurrencies https://www.coinbase.com/home

 

13. With the increase in the value of 1,500%, it makes Bitcoin and most other cryptocurrencies a very risky investment.

 

 

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