THE JOURNEY TO CRYPTOCURRENCY MASTERY BEGINS NOW
Welcome to my mini blog site for learning about cryptocurrency! As I learn how to enter into this new age, I want you to follow along and learn with me. This will be our resource to exchange knowledge and ideas.
Cryptocurrency is the future, folks. Whether you understand it or not, it's going to be the biggest fundamental change in finance that you will see in your lifetime. Now is the opportunity for you to learn, and to benefit in order to secure your financial future.
What is cryptocurrency, exactly? It's simply a digital payment system that does not require the involvement of banks, governments, or regulatory agencies. It's just a medium of exchange. It was invented by an unknown person or group of people under the name "Satoshi Nakamoto".
It was released in the year 2009 as an open source software system that runs on a peer-to-peer network where transactions take place directly from the people involved in trading, without a bank or other intermediary.
Any time two individuals make a transaction of currency, it is verified by network nodes, and recorded in a public distributed ledger called the "blockchain". It is open for anyone to view, and every single transaction that occurs is public knowledge.
The first "cryptocurrency" was Bitcoin. Bitcoins can be traded for products, services, or traded for worldwide currencies like the US dollar. As of February of 2015, there were over 100,000 merchants and vendors in the world accepting Bitcoins as a method of payment.
Whenever a transaction is made, it is verified by thousands of "auditors" out on the node. This keeps every transaction safe, and prevents anyone from duplicating their Bitcoins or making fraudulent trades. It makes the system impossible to hack, unlike regular money that you can counterfeit.
The process of auditing Bitcoin transactions is called "mining", because auditors are rewarded with tiny amounts of Bitcoin currency for performing a service. But there is a finite amount of Bitcoin currency that will be allowed to be created, and once that's done, mining will cease. At that point, auditors will be paid by charging a small fee to verify transactions.
Bitcoins can also be bought, and just sat on, as an investment. The more people pile on and buy Bitcoins, the higher the demand becomes. That means the value of each Bitcoin rises over time. I have a friend who bought five Bitcoins back in 2013 for around $400 per coin. Each of those coins is now worth nearly $10,000. That makes it an attractive investment.
Since Bitcoin was invented, there are several other cryptocurrencies that have hit the scene such as Ethereum and Litecoin. There are probably over 100 different cryptocurrencies that are being bought and sold as of this day, and the majority of them are increasing in value.
The benefit of cryptocurrency is that it removes the banks from the equation when two individuals seek to transact business or trade. It puts the power into the hands of the people, and the banks don't make any money. That's why it represents a threat to the current monetary system of the governments in the world.
That is the most basic level explanation of what Bitcoin and cryptocurrency is, and we'll get into much more detail as time goes on. This is a good starting point, and you'll want to continue to learn so you will be able to plan for investing. And you better have a sense of urgency about it. Why?
It is due to the fact that we are in the stage of change that is called the "Early Adopters". At this stage of change, this is where innovation hits critical mass and we experience massive growth. A good example would be the arrival of the first iPhone.
You can probably remember when you first heard about the development of Apple's first smartphone, but you had no idea it would change the world. Within a few months after the first iPhone was released, we hit critical mass. Years later, the majority of everyone in the world, regardless of their socioeconomic level, carries a smartphone.
This is exactly the point we are at right now regarding cryptocurrency. If you ask your friends about it, it is possible that 9 out of 10 have heard about Bitcoin but have not had any experience buying or trading with it. That will rapidly change.
Getting on the band wagon now could mean the difference between living at your current financial level, or living in a wealthy state beyond your wildest dreams. But if you wait to enter the market along with the majority of people, you won't be able to capitalize on the explosive growth from a financial standpoint.
The Crypto Keeper