“Encryption” – or “cryptocurrency” – is a software system that provides users with transaction functions over the Internet. The main feature of the system is their decentralization function – usually provided by the blockchain database system.
Blockchain and “cryptocurrency” have recently become important elements of the global zeitgeist; mostly because of Bitcoin’s sky-high “price”. This has resulted in millions of people participating in the market. As demand rises, many “bitcoin exchanges” are under tremendous infrastructure pressure.
The important thing to realize about “encryption” is that while it actually serves one purpose (cross-border transactions over the Internet), it offers no other economic benefits. In other words, “intrinsic value” is strictly limited to the ability to do business with others; it’s not the storage/distribution of value (what most people think).
The most important thing to realize is that “Bitcoin” and so on are payment networks and not “currency”. This will be explained in more detail later, the important thing to realize is that ‘getting rich’ through BTC does not enable people to gain a better economic status – it is simply being able to buy ‘coins’ at a low price. sell at a higher price.
For this reason, when you look at “encryption”, you first have to understand how it really works and where the “value” really lies…
Decentralized payment network…
As mentioned before, the key to remember about “encryption” is that it is primarily a decentralized payment network. Think of Visa/Mastercard without a central processing system.
This is important because it highlights the real reason why people are really starting to study the “Bitcoin” proposition more deeply; it allows you to send/receive money to anyone around the world as long as they have your Bitcoin wallet address.
The reason why “price” is attributed to various “coins” is because people mistakenly believe that “bitcoin” will somehow give you the opportunity to make money by becoming a “crypto” asset. It doesn’t.
The only way for people to make money with Bitcoin is to “rise” the price buying “coins” at a low price and then selling them at a much higher price. While it works well for many people, it’s actually based on the “big fool theory” – essentially, if you manage to “sell” the coin, it will be sold to someone “big fool” than you .
This means that if you want to get involved in the “crypto” field today, you are actually considering buying cheap (or cheap) “coins” (or even “alt” coins) and using them to raise prices until you sell it later. Since no “coin” is backed by real-world assets, it is impossible to estimate when/or/how it will work.
In all respects, “Bitcoin” is the end of a force.
The epic rebound in December 2017 signaled its mass adoption, and while its price may continue to rise above the $20,000 range, buying one of these tokens today is actually a huge gamble for this to happen.
Smart money already pays attention to most of the relatively cheap ‘alt’ coins (Ethereum/Ripple, etc.), but prices and acceptance rates are still growing. The most important thing to look at in the modern “encryption” space is the actual use of different “platform” systems.
This is the fast “tech” space; Ethereum and Ripple look like the next “bitcoin” – focused on their ability to actually allow users to leverage “decentralized applications” on top of their underlying networks (DApps) that work in a way to acquire functionality.