How "Cryptography" Coin operation – A brief overview of Bitcoin, Ethereum and Ripple

“Crypto” – or “crypto currency” – is a type of software system that provides users with transactional functionality over the Internet. The most important feature of the system is theirs decentralized nature – usually provided block chain database system.

Blockchain and “crypto currency” have become major elements in the global zeitgeist lately; usually due to the rise in the “price” of Bitcoin. This has led millions of people to participate in the market, as many “in exchange for Bitcoin” were experiencing major infrastructure tensions as demand rose.

The most important point to realize about “crypto” is that even if it actually serves a purpose (cross-border transactions over the Internet), it does not provide any other financial benefit. In other words, its “intrinsic value” is firmly limited to its ability to interact with other people; NO value when storing / spreading (which is what most people see).

The most important thing you need to realize is that they are “Bitcoin” and the like payment networks – NOT “currencies”. This will be worked out in more depth in a second; the most important thing to realize is that “enriching” with BTC is not the case to give people a better economic situation; it’s just a process of buying “coins” for a low price and selling them higher.

To do this, when looking at the “crypto”, you must first understand how it works, and where its “value” really lies …

Decentralized Payment Networks …

As I said, the key to remembering about “Crypto” is primarily a decentralized payment network. Think Visa / Mastercard without a central processing system.

This is important because it highlights the real reason why people have begun to explore the “Bitcoin” proposal in more depth; it gives you the ability to send / receive money from anywhere in the world as long as they have the address of your Bitcoin wallet.

The reason this attributes a “price” to different “coins” is because “Bitcoin” will somehow give you the ability to make money by being an “crypto” asset. It is not.

The ONLY The way people make money with Bitcoin has been due to its “rise” in price – buying “coins” at a low price and selling MUCH higher. Although it worked well for many people, it was actually based on the “theory of the greater fool”; basically, if you get to “sell” the coins, it’s a “bigger fool” than you.

This means that if you want to participate in the “crypto” space today, you are basically looking to buy any “coins” (as well as “alt” coins) cheaply (or cheaply) and walk on them. the price goes up until you sell them later. Since even one “coin” is not protected by real-world assets, there is no way to calculate when this / bullet / how it will work.

Future Growth

For all intents and purposes, “Bitcoin” is a spent force.

The December 2017 epic rally signaled massive adoption, and while its price is likely to continue to rise in the $ 20,000 range, buying one of the coins today will essentially be a big bet for what will happen.

Smart money is being studied for most “alt” coins that are already relatively low priced (Ethereum / Ripple, etc.), but they are constantly growing in price and adoption. The main thing to look at in modern “crypto” space is the way in which different “platform” systems are actually used.

Such is the space where “technology” is fast; Ethereum and Ripple look like the next “Bitcoin” – focusing on how they are able to actually give users the ability to actually use “decentralized applications” (DApps) on their underlying networks to achieve functionality. lana.

This means that if you’re looking at the next level of “crypto” growth, it’s almost certain to come from different platforms that you’re able to identify.