Introduction: Crypto-Currency in brief
“Crypto” or “crypto-currency” – is a form of software framework that allows users to conduct transactions over the Internet. The system’s most important aspect is its decentralized existence, which is usually provided by a blockchain database system.
Blockchain and “crypto-currency” have recently risen to prominence in the global zeitgeist, owing to the skyrocketing “price” of Bitcoin. As a result, millions of people have entered the market, with many “Bitcoin exchanges” experiencing tremendous infrastructure stress as demand has risen.
The most important thing to remember about crypto-currency is that, while it does have a meaning (cross-border Internet transactions), it does not have any financial gain. In other words, the “intrinsic value” is strictly limited to the ability to trade with other people; it does not include the ability to store or disseminate value (which is what most people see it as).
The most important thing to remember is that “Bitcoin” and similar digital currencies are payment networks, not currencies. This will be elaborated in details under; the most important thing to remember is that “getting rich” with BTC does not mean improving people’s financial situation; rather, it simply entails being able to buy “coins” at a low price and sell them at a higher price.
To that end, when contemplating crypto-currency, you must first comprehend how it functions and where its “value” lies…
How it works: Decentralized Network Payment System
As previously said, the most important aspect of Crypto-currency to note is that it is primarily a decentralized payment network. Consider Visa and MasterCard, but without the central processing system.
This is relevant because it elucidates the real reason why people are getting more interested in the “Bitcoin” proposition: it allows you to send and receive money from everyone in the world as long as they have your Bitcoin wallet address.
Because of the misconception that “Bitcoin” would somehow offer you the opportunity to make money by virtue of becoming a “crypto” asset; this assigns a “price” to the various “coins.” That isn’t the case.
People have only been able to profit from Bitcoin because of its “rise” in price – buying the “coins” for a low price and selling them for a much higher price. Although it worked out well for many people, it was based on the “greater fool principle,” which states that if you “sell” the coins, it would be to a “greater fool” than you.
This means that if you want to get into the “crypto” room now, you can buy some “coins” (including “alt” coins) that are cheap (or inexpensive) and ride their price increases before you sell them off later. There’s no way to know when/if/how this would work because none of the “coins” are backed by real-world properties.
Future Potentials of Crypto-currency: Growth
“Bitcoin” is, for all intents and purposes, a defunct power.
The epic rally of December 2017 signaled mass acceptance, and while its price will almost certainly continue to rise into the $20,000+ range, purchasing one of the coins now is essentially a big bet that this will happen.
The smart money is now looking at the majority of “alternative” coins (Ethereum/Ripple, for example), which have a low price but are steadily increasing in price and acceptance. The manner in which the different “platform” systems are actually used is the most important thing to look at in the modern “crypto” space.
Because of the fast-paced “technology” room, Ethereum and Ripple are looking like the next “Bitcoin” – with a focus on how they can provide users with the ability to use “decentralized applications” on top of their networks to get functionality to work.
This means that if you’re looking for the next stage of “crypto” development, it’ll almost certainly come from the numerous platforms you’ll be able to find.