Cryptocurrency Explained

An article written by: Lee Sonogan

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“Cryptography began in mathematics.” – James Sanborn

Similar to shares cryptocurrency is a digital asset of value designed as a medium of exchange based on a market system. Think of it as a coin in a digital form. Using strong cryptography to secure financial transactions you can also create additional units, and personally transfer assets. cryptocurrency is an alternative to modern banking. Saying that it involves a lot of knowledge on how it works before even considering investing into a virtual coin of value.

The value of each coin worth is set by the supply and demand of the market. Then if you have the money for powerful computer hardware you can mine for various coins as Bitcoin and much more. You make coins by solving advanced mathematical algorithms while a large network of mining computers are competing against each other. The reward is usually a small amount of coins. This is how new coins are added into the currency system. Currently one Bitcoin is worth $7,442.23 dollars in America.

Other relevant facts about Bitcoin:
  • Only 0.003% of the world (250,000 people) is estimated to hold at least 1 Bitcoin.
  • Only 24% of people know what Bitcoin is.
  • A coin called Coinye was involved in a trademark dispute with Kanye West.
  • In 2013, James Howells accidentally threw away a hard drive that had 7,500 Bitcoins which were worth $7.5 million  at the time.
  • There are girls who will strip for Bitcoin tips on Reddit via the GirlsGoneBitcoin sub-forum

Cryptocurrency can lose 80% of its value at any second. This currency is high risk investments. There is also a potential to get hacked because it is partly unregulated. Many countries around the world have completely banned it online. Then there is what is called “Whales”. The big money earners of cryptocurrency. They stay at the top because they have to manipulate the price to keep earning. There are methods such as rinse and repeat, buy and sell walls and much more to make people buy and sell at certain times.

Personally I would not invest in Bitcoin. Unless I knew someone personally who was successful at it and would teach me it for free. It is a tool for the rich to invest in, not the average person. WikiLeaks relies on cryptocurrency donations because no other transfer company would deal with them. With that amount of good that cryptocurrency can do there is many black market websites that deals in cytocurrency.

“If privacy is outlawed, only outlaws will have privacy.” – Phil Zimmermann

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