Crypto currencies or Crypto are one kind of software system that gives transactional functionality to the users over Internet. Most significant feature of this system is the decentralized nature – generally provided by blockchain database system. “Crypto currencies” and Blockchain have actually become two major elements to global zeitgeist recently; generally because of “price” of the Bitcoin skyrocketing. It has lead many people to take part in this market, with a lot of “Bitcoin exchanges” undergoing the enormous infrastructure stresses as this demand soared.
One important point to know about “crypto” is although it serves the purpose (transactions through Internet); it doesn’t provide other financial benefit. Its “basic value” is limited to an ability of transacting it with people; and not in a storing and disseminating of value (that is what many people see in crypto news).
Other thing you have to realize is “Bitcoin” and others are the payment networks – and NOT “currencies”. The important thing to know is “getting rich” with the BTC isn’t a case to give people any good economic standing – it is just this process of buying “coins” for the low rate and sell this higher.
Decentralized the Payment Networks
One important thing to know about “Crypto” is it is predominantly the decentralized payment network. Think Visa and Mastercard without central processing system. It is very important because this highlights real reason why many people have actually started looking in “Bitcoin” proposition very deeply; it provides you an ability to send and receive money from anybody across the world, providing they’ve your Bitcoin wallet information.
Reason why it attributes the “price” to various “coins” due to the misconception that the “Bitcoin” can somehow give you an ability to earn money of being the “crypto” asset. An ONLY way people are making money with the Bitcoin is because of “rise” in the price – buying “coins” for low cost, and selling this out for the higher one.
It means that if you are looking to get much involved with “crypto” space now, you are basically looking to buy any of this “coins” which are inexpensive, and riding the price rises till you sell this off later on. As none of these “coins” are actually backed by the real-world assets, and there is not any way to estimate how it can work.
Final thoughts
Bitcoin is a pioneer of the new crypto-currency period; this technology gives you the peek in future currency.