Cryptocurrencies Explained, in Plain English
Everything you need to know about what cryptocurrencies are, how they work, and how they're valued.
Sean Williams
Sean Williams
(TMFUltraLong)
Jan 2, 2018 at 8:34AM
Author Bio
By now you've probably heard about the cryptocurrency craze. Either a family member, friend, neighbor, doctor, Uber driver, sales associate, server, barista, or passer-by on the street, has probably told you how he or she is getting rich quick with virtual currencies like bitcoin, Ethereum, Ripple, or one of the lesser-known 1,300-plus investable cryptocurrencies.
But how much do you really know about them? Considering just how many questions I've received out of the blue from the aforementioned group of people over the last month, the answer is probably, "not a lot."
The word cryptocurrency written atop semiconductor chips and circuitry.
IMAGE SOURCE: GETTY IMAGES.
Today, we'll change that. We're going to walk through the basics of cryptocurrencies, step by step, and explain things in plain English. No crazy technical jargon here. Just sticks and stones examples of how today's cryptocurrencies work, what they're ultimately trying to accomplish, and how they're being valued.
Let's get started.
What are cryptocurrencies?
Simply put, cryptocurrencies are electronic peer-to-peer currencies. They don't physically exist. You can't pick up a bitcoin and hold it in your hand, or pull one out of your wallet. But just because you can't physically hold a bitcoin, it doesn't mean they aren't worth anything, as you've probably noticed by the rapidly rising prices of virtual currencies over the past couples of months.
How many cryptocurrencies are there?
The number is always changing, but according to CoinMarketCap.com as of Dec. 30, there were around 1,375 different virtual coins that investors could potentially buy. It's worth noting that the barrier to entry is particularly low among cryptocurrencies. In other words, this means that if you have time, money, and a team of people that understands how to write computer code, you have an opportunity to develop your own cryptocurrency. It likely means new cryptocurrencies will continue entering the space as time passes.
Why were cryptocurrencies invented?
Technically, the idea of an electronic peer-to-peer currency was being tinkered with decades ago, but it wasn't truly successful until 2008, when bitcoin was conceived. The basis of bitcoin's creation, and all virtual currencies that have since followed, was to fix a number of perceived flaws with the way money is transmitted from one party to another.
What flaws? For example, think about how long it can take for a bank to settle a cross-border payment, or how financial institutions have been reaping the rewards of fees by acting as a third-party middleman during transactions. Cryptocurrencies work around the traditional financial system through the use of blockchain technology.
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So the best candidate for Blockchain development works well with others, knows his or her limitations, and can unconventionally approach problems.The aggregate impact is massive malinvestment; investment in activities that would not have occurred if people were not forced into a position of taking ill-advised risk merely to replace the expected future loss of current savings. On an individual level, it is the doctor, nurse, engineer, teacher, butcher, grocer, builder, etc. being turned into a financial investor, plowing the majority of their savings into Wall St. financial products that bear risk while perceiving there to be none. Over time, stocks only go up, real estate only goes up, and interest rates only go down.dollar bitcoin logo bitcoin fpga ethereum ethereum telegram вебмани bitcoin компания bitcoin bitcoin 2x monero hardware price bitcoin plus bitcoin
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Genesis Mining Review: Genesis Mining is the largest Ether cloud mining provider. Ethereum cloud mining contracts are reasonably priced.bitcoin фарминг In mid 2017, a mechanism called the difficulty bomb (or 'Ethereum Ice Age') started to kick in. This meant that the difficulty of mining a block rose, therefore slowing down blocks. This resulted in a dramatic decrease in issuance rate.Which is why the process for setting up a worker is such a nice respite: basically no precautions are required. A worker represents a computer or mining rig on a pool. You might have just one, or you might want to set up several, each corresponding to a different machine. Each worker will have a username (all housed under your username at the mining pool) and a password. You can make the password '1234' or 'password,' if you want. If someone compromises your worker, all they can do is mine cryptocurrency for you. Only unstoppable ideas can break otherwise immovable institutions: zero brought The Church to its knees and Bitcoin is bringing the false church of The Fed into the sunlight of its long-awaited judgement day.Ethereum’s value is traded using the platform's currency, Ether.надежность bitcoin bitcoin asic ethereum пулы ethereum cgminer tokens ethereum wallet tether nicehash bitcoin bitcoin crash bitcoin сатоши
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