How “Crypto” Works Work – Brief Overview About Bitcoin, Ethereum & Ripple

“Crypto” – or “Crypto Currency” – is a type of software system that provides transactional functionality to users through the Internet. The most important feature of this system is the nature of their decentralization – usually provided by the Blockchain database system.

Blockchain and “Crypto currencies” have become the main element for global zeitgeist recently; Usually as a result of “price” bitcoin skyrocketing. It has led millions of people to participate in the market, with many “Bitcoin exchange” which experienced massive pressure on infrastructure as a demand soaring.

The most important points to realize about “crypto” are that even though it actually serves the purpose (cross-border transactions through the internet), it does not provide other financial benefits. In other words, “intrinsic value” is limited to the ability to transact with others; Not in storing / disseminating value (which is most people see it as).

The most important thing you need to realize is that “Bitcoin” and the like is a payment network – not “currency”. This will be closed deeper in one second; The most important thing to realize is that “getting rich” with BTC is not a case of giving people a better economic stand – it’s just a process to be able to buy “coins” at low prices and sell it higher.

For this purpose, when viewing “Crypto”, you must first understand how it works, and where “Value” is really a lie …

Decentralized payment network …

As mentioned, the important thing to remember about “crypto” is that it is mainly a decentralized payment network. Think of Visa / MasterCard without a central processing system.

It’s important because it highlights the real reason why people really start looking into deeper “bitcoin” propositions; It gives you the ability to send / receive money from anyone around the world, as long as they have your Bitcoin wallet address.

The reason why this connects the “price” to a variety of “coins” is because of a misunderstanding that “Bitcoin” somehow gives you the ability to make money based on an asset “Crypto”. No.

The only way people have made money with Bitcoin have been because “up” in the price – buy a “coin” at a low price, and sell it for a much higher. While it works well for many people, it is actually based on “bigger stupid theory” – basically states that if you succeed in “selling” coins, it’s for “bigger fools” than you.

This means that if you want to be involved with the “Crypto” room today, you basically see buying one of the “coins” (even “alt” coins) that are cheap (or cheap), and drive them prices up until you sell it later. Because there is no “coin” supported by real-world assets, there is no way to estimate when / if / how this will succeed.

Future growth

For all goals and goals, “Bitcoin” is the power spent.

Epic rally December 2017 shows mass adoption, and while the price is likely to continue to grow to a range of $ 20,000 +, buying one of the current coins will basically become a big gamble that will occur.

Smart money has seen the majority of “Alt” coins (ethereum / ripple etc.) which have relatively small prices, but continue to increase in price and adoption. The main thing to see in the modern “Crypto” room is the way in which various systems “platforms” are actually used.

That’s fast “technology” space; Ethereum & Ripple looks like the next “bitcoin” – with a focus on the way they can provide users with the ability to truly utilize “decentralized applications” (DAPPs) on the underlying network to get work functionality.

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