In the world of the global economic network, which keeps the flow of money from the account that you receive from stores, to millions of transactions, in 2009, a completely new currency emerged, leaping from the established network and building its own system with its increasing popularity. It is impossible that you have not encountered a phenomenon called bitcoin somewhere lately, at least in a title or a bombastic announcement. And even if you know everything about cryptocurrencies or you’ve only heard about bitcoin for the first time, surely you have imagined – is there treasure in the world of digital currencies? Although many have not predicted a bright future, there is no doubt that with the explosion of popularity in the past few months, crypts have become an integral part of our society and have announced a great future for digital money. And again we come back to the question – can we catch that train full of gold or it’s all just a story?
As steel, oil and infrastructure development have opened the way for the emergence of first cars, the Internet and advanced software have begun a completely new era in the world of finance under the name of crypts. Cryptocurrency is a digital, virtual cryptographic-based currency programmed with the so-called blockchain system. Although money also loses value due to inflation, it is still considered a safer way of disposing of capital from crypts, as concerns the devaluation of value on the market itself. Cryptocurrencies are mainly speculative and are accepted by individual traders as a means of exchanging and calculating values. The basic parameters in deciding the investment in a particular cryptocurrency are: the final number of commodities to be released, the value of the market capitalisation of the crypt, the stability in a certain period, the security of storage, the number of users and merchants who accepted this crypto payment as a means of payment, traders, company management (if any), support of the professional public and compliance with the legal regulations of the countries that have accepted them as such. Today’s biggest global battle in the world of cryptocurrency is which will be the first crypt of the world’s stock exchanges and will provide the greatest possible accessibility and way of using it to the “ordinary” man. For now, no crypt has gone to any official stock exchange and all transactions are done through private sites.
One of the most important reasons for the creation of the crypts itself is the overflow of money in terms of its printing without cover, the possibility of counterfeiting thanks to today’s available technology, as well as the ever-more-expensive production. Cryptocurrencies do not need such infrastructure in the form of branches and every payment procedure is performed extremely quickly and without intermediaries. The impossibility of falsification of crypts due to its complex method of creation is another important comparative advantage over fresh money. Annual fees only on the transfer of money between physical and legal entities are about 22 trillion dollars. It’s a huge amount of money that ends up with companies like “Western Union” and other transaction systems.
What is bitcoin and how it works?
Bitcoin is a cryptocurrency, launched in 2009 by a person or a group of people under the pseudonym Satoshi Nakamoto. This cryptocurrency is not based on a gold background, there is no country of origin and there is no country or banking organization behind it. Bitcoin is completely digital, and it is created in a process called mining, which runs on standard computers or specialized hardware with respect to strict rules, which are provided by automatically cryptographic systems and the Bitcoin community. These computers and specialized hardware solve a complex series of mathematical algorithms, and the speed of their solving, or the accumulated power of the computer system that a particular individual possesses – depends on the speed and efficiency of its mining. Mining is an automatic process that the computer performs continuously, preferably 24 hours a day, seven days a week. Bitcoin can mine anyone, regardless of land or citizenship, and people who seriously understand mining have real small computer farms, placed in well-ventilated rooms, where they “dig” Bitcoin without a cessation.
What about enriching?
Now, you are wondering, “how can from nothing become something” or how can the money come from calculations that do not serve anything? For a detailed answer to this question, you must have a knowledge of political economy, but – in a simpler way – paper money is not worth anything by itself, but its value is created on the market, that is, the perception of people that it is worth something. The number of Bitcoin is limited, their “appearance” from “nothing” occurs in a predictable rhythm, which prevents inflation, and this is the basic precondition for the trust of brokers and merchants who recognize Bitcoin. Bitcoin has several great advantages compared to traditional currencies. First, online Bitcoin transactions do not require an intermediary, that is, they can be done without a bank, which makes them more attractive to traders because of lower prices of goods and services (no banking fees). Secondly, Bitcoin transactions are anonymous, which can be appreciated by passionate privacy lovers as well as online sellers who do not want them to go through books and bills. Is mining worthwhile, since everyone is talking about it and more people are buying equipment? At the current value of Bitcoin, an investment of 10,000 euros in equipment would return in seven or eight months, and all over it would have been a clean profit. Of course, due to the very nature of this currency, drastic drops and drastic jumps are possible, so it is not excluded that the new investor will collapse, but also earn double.
Customers make and exchange the value of a currency that varies over time in the stock market. The path of the zero value it had at the founding of today’s nearly 3,000 US dollars is truly impressive. Among the most striking results of the phase transition, although it has gone through a lot of temptations, is the growth of seven consecutive years, which did not have any other crypto or fiat currency. And all short-term losses, counting the one from the beginning of 2017 of 30 percent, managed to make up for just a few weeks. Thus, the imbalance that was present in the crisis situations of the cryptology during the first years of its phase development was briefly annulled for achieving an enviable level of stability, as the wind in the back of the trends in the adaptation of bitcoins in the economic network and acceptance from a wider circle of investors. Fantastic growth in the value of cryptocurrencies lately seems to be the best and fastest way to earn a lot of money. The fact is that in the last eight months, the most widespread cryptology has grown by 250 to 400 percent (and some less well-known and less valuable and up to an incredible 3,000 percent). However, given the new currencies, fluctuations are frequent and enormous. In translation, this means that no one knows if in the coming days or months their value will drop drastically, which has already happened, or the trend of growth will continue.
How to buy bitcoin and make it safe?
One way to buy bitcoins is through exchange offices like Kraken or SpectroCoin. Kraken is the world’s largest currency exchange office that supports currencies such as the Canadian and American dollars, the British pound and the Japanese yen. Through these online exchanges, you get the opportunity to make an existing world currency such as the dollar, replace for the bitcoin that is stored in your virtual wallet. An offline wallet, commonly known as “cold storage”, is the safest form of money storage that is significant when the computer or network suffers attacks or damage. The hardware wallet is an excellent shelter in the form of a small device made exclusively for enabling high protection in a large number of bitcoins. Whether it’s online or offline shopping, using a Cryptopay debit card, this kind of backup copy of the wallet gives you the advantage of being bitten by securing your money at any time.
Also read about: How to make a fortune by investing in cryptocurrency.
The fact is that the world is changing faster. And we should not blame technology and scientists as being innovative. Technology is not an obstacle to prosperity and freedom, it does not create them by itself, it is a human being. He is the one who is wondering whether the technology will be used in a positive or negative direction. Bitcoin incorporated anonymity, security and lightness, making a paradox in relation to its complexity. It extends its multi-layered extension to an ever-increasing position in the bureaucratic world, which contributes to the domination of the crypt compared to the others. But whether this, still a young way of doing transactions, will dominate the world, remains an open question that is being discussed on a daily basis. Although it seems easy to use the digital money, there are always shortcomings and problems. When it comes to technology, all problems are solved practically on the move. New ideas and better products are emerging on a daily basis, so digital money should not be completely abandoned. However, additional caution is never a waste.