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WHAT IS CRYPTOCURRENCY | THE BEGINNERS GUIDE

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WHAT IS CRYPTOCURRENCY | THE BEGINNERS GUIDE

Most people have heard of Bitcoin and Ethereum as something called "cryptocurrencies." Yet to many there is a bit of uncertainty and even fear around this word and what it truly means.

Naval Ravikant said "Bitcoin is almost to computers what quantum mechanics is to physics."

And while that may be a complicated way of looking at what cryptocurrencies are, it is in this phrasing that we start to understand what a currency is and why cryptocurrency is the evolution of money.

what is cryptocurrency

WHAT IS A CURRENCY?

what is cryptocurrency

WHAT IS A CURRENCY?

Currency is something that holds value.

Currency is a fluid store of value that allows for trading, exchange and even storage of that value over time.

At one point in time currency was the cattle you had in your backyard, then it was sticks and different shaped instruments.

After that the rare ore of gold was found and traded as a simple way to exchange and show store of value, and finally we made it to paper currency that we all know and love.

Good Ole Cash.

And while cash is still currently King, it can be lost, difficult to transfer a large amount, and controlled centrally in its global value.

Which is exactly where cryptocurrencies come in.

what is cryptocurrency

CRYPTOCURRENCIES ARE THE NEXT FORM OF MONEY

what is cryptocurrency

CRYPTOCURRENCIES ARE THE NEXT FORM OF MONEY

What is Cryptocurrency?

Cryptocurrency is a cryptographically secured currency.

In other words, cryptography is the art of writing or solving codes, and thus a “crypto”-currency is a piece of coded data that holds value. It is more secure than a piece of paper and less hackable (granted you follow our guides on securing your currency) than a bank or Equifax...

In fact, the more people who use cryptocurrency, and the protocol it is on, the blockchain, the more secure it becomes as it builds on itself.

Essentially, by sending bitcoin from one person to another you create a record of that exchange, and the more records created, the more records that exist for all of Bitcoin.

This makes it nearly impossible to edit and change the history of Bitcoin, as you would have to change every record and transfer ever done previously.

This is the future of money and it is here to stay...

what is cryptocurrency

HOW CRYPTOCURRENCIES WILL EVOLVE MONEY AND ARE HERE TO STAY

what is cryptocurrency

HOW CRYPTOCURRENCIES WILL EVOLVE MONEY AND ARE HERE TO STAY

"Bitcoin is a bubble" can be heard by every financial analyst stock market broker and skeptic, but Bitcoin, and all cryptocurrencies for that matter, fundamentally cannot be a bubble.

Why?

Because cryptocurrencies are a store of value, exchange and security...

In other words, it is money...

...And money is a bubble that never pops.

Ever heard of the U.S. dollar bubble popping? Neither have I.

Whereas the .Com bubble of the late 90's was a literal bubble in money flooding random useless ideas because they were .com's, cryptocurrency is a means of exchange being flooded as it is the technological successor of money.

In other words, cryptocurrency is the evolution of money.

It’s safer than keeping your money in a bank, it’s quicker than wiring a transfer of money from one country or person to another, it’s more discreet than using a credit card, and its fees are cheaper than almost any processor out there.

It is a technological succession of money, and is a total store of value which will increase in value over time.

(For more info on is Bitcoin a bubble - make sure to give that article a read.)

 

what is cryptocurrency

WHY THE SECOND BEST TIME TO INVEST IN CRYPTOCURRENCY IS TODAY

what is cryptocurrency

WHY THE SECOND BEST TIME TO INVEST IN CRYPTOCURRENCY IS TODAY

So what is Bitcoin? In 2008 when Bitcoin was started, it was worth barely anything.

Even 3 years later, in 2011, it was still worth hardly anything, as seen in the story of someone buying 2 pizzas for about 10,000 Bitcoins, thinking it was a wise investment.

Today 1 bitcoin - a single bitcoin - is worth around $7000.

That makes those two pizza's worth around $70,000,000, making them the most expensive pizzas ever conceived.

Between 2009-2012, we saw the "best time" to get into Bitcoin as it was still very cheap and steadily on the rise, with all of the indications that it was obvious evolution of the way money was going to evolve.

NOW is the second best time.

Its value is increasing, its global use continues to increase, and the value of the whole cryptocurrency market is currently surpassing $200,000,000 (and shows no signs of stopping).

With its current track, some speculators see Bitcoin, specifically, growing up to $300,000 a coin. Because there is a limited supply of these coins (only 21,000,000),  this is entirely feasible and makes a lot of sense. With 8 billion people in the world, trillions of dollars in the market, and only $200,000,000 in cryptocurrency, as mass adoption takes place the amount of money that each good and non-scammy cryptocurrency is worth will increase. A lot.

And the good news is, you don’t need $7000 or so to purchase Bitcoin - these coins are pieces of data that can be divided down to 0.00000001 Bitcoin, allowing you to purchase even extremely small amounts.

You can put $20 or $200,000 into it, and either way it is going to increase.

While we can't go back and buy Bitcoin or Ethereum when they were worth just pennies, we can start to invest in the currency of the future today and profit from the mass adoption taking place.

Remember, NOW is the second best time, and you surely don’t want to miss out on it.

With companies like Mircosoft, Overstock, and over 260,000 businesses now accepting it, cryptocurrency adoption is growing, and really starting to pick up speed.

Before we jump into how to buy and how you can master cryptocurrencies today, let’s dive into Bitcoin and Ethereum to give you a background at the two most popular cryptocurrencies in the world.