How "Crypto" Currencies Work – A Brief Overview Of Bitcoin, Ethereum & Ripple

“Crypto” – or “cryptocurrencies” – are a type of software system that provides the functionality of transactions for users through the Internet. The most important feature of the system is theirs decentralized nature – usually provided by blockchain database system.

Blockchain and “cryptocurrencies” have become key elements of the global zeitgeist recently; usually as a result of the “price” of heaven in heaven. This has led millions of people to participate in the market, with many of the “Bitcoin exchanges” experiencing massive infrastructure stresses as demand increased.

The most important point to understand about “crypto” is that although it actually serves a purpose (cross-border transactions over the internet), it does not offer any other financial benefit. In other words, its “intrinsic value” is firmly limited in its ability to transact with other people; NO to storing / distributing value (which is what most people see as people).

The most important thing to understand is that “Bitcoin” and the like are payment networks – NO “coins”. This will be addressed more deeply in a second; The most important thing to understand is that “getting rich” with BTC is not a case of giving people a better economic situation – it is simply the process of being able to buy “coins” for a low price and you sell them above.

For this purpose, when you look at “crypto”, you must first understand how it actually works, and where its “value” really lies …

Decentralized Payment Networks …

As mentioned, the main thing to remember about “Crypto” is that it is basically one decentralized payment network. Consider Visa / Mastercard without central processing system.

This is important because it underscores the real reason why people are really starting to look at the “Bitcoin” proposal more deeply; this gives you the ability to send / receive money from anyone in the world, as long as they have your Bitcoin wallet address.

The reason this attributes a “price” to different “currencies” is due to the misconception that “Bitcoin” will somehow give you the ability to make money by being a “crypto” asset. not

only the way people have made money with Bitcoin has been because of its “rising” price – buying “coins” for a low price and selling them for a MUCH higher. While it worked well for many people, it was actually based on the “biggest fool theory” – essentially stating that if you manage to “sell” coins, it is for a “bigger fool” than you.

This means that if you are looking to get involved in the “crypto” space today, you are basically looking to buy any of the “coins” (even “alt” coins) that are free (or cheap), and their riding price increases until you sell them later. Because none of the “currencies” are backed by real-world assets, there is no way to estimate when / if / how this will work.

The Rise of the Future

For all intents and purposes, “Bitcoin” is a wasted force.

The December 2017 epic rally showed massive adoption and while its price is likely to continue to rise in the $ 20,000 + range, buying one of the currencies today will essentially be a big game for this to happen.

Wise money is already looking at most “alt” currencies (Ethereum / Ripple etc.) which have a relatively low price but are constantly rising in price and adoption. The main thing to look at in modern “crypto” space is the way in which different “platform” systems are actually being used.

Such is the rapid “technological” space; Ethereum & Ripple are looking like the next “Bitcoin” – with a focus on how they are able to provide users with the ability to actually use “decentralized applications” (DApps) on top of their networks basic to get work

This means that if you are looking at the next level of “crypto” growth, it will almost certainly come from the various platforms you are able to identify there.