A Cryptocurrency is a medium of exchange designed for exchanging information through a process made possible by the principles of cryptography. These principles are very important to Cryptocurrency because they secure transactions and control creation of additional units of the currency. In the simplest of terms — a Cryptocurrency is a digital currency.
In 2009, the first Cryptocurrency — Bitcoin — was announced. Bitcoin was created by a person using an alias, Satoshi Nakamoto. The technical system behind the creation and development of Bitcoin is known as blockchain technology. After Bitcoin was announced in 2009, hundreds of other Cryptocurrencies have been created and are commonly referred to as Altcoins. These Altcoins or digital currencies use the blockchain technology to verify and authorize transactions.
Cryptocurrencies are completely decentralized i.e. they are not controlled by the government in any way. This is because unlike fiat currencies like the US Dollar, Cryptocurrencies are not printed hence it can neither be controlled by government nor any bank. Ever since 2009, Cryptocurrencies have been growing rapidly. More people from the four corners of the world are becoming familiar with digital currencies. A lot of industries have also embraced the blockchain technology.
There are many factors that affect the development or collapse of the economy. Interest rates, inflation, monetary supply are just a few of these factors. Actions by central banking systems such as the Federal Reserve Systems may have a negative impact on the economy. Increasing or decreasing the amount of fiat currency in the economy may lead to collapse of the economy. More countries are currently operating on debts and some of them are responding by printing more currency to cover these debts. In times of financial distress the price of commodities rises and the value of the fiat currency goes down forcing investors to look at alternative means not tied to government bills like Cryptocurrencies.
There are various advantages of using Cryptocurrencies as compared to using fiat currencies. Besides being completely decentralized, it’s also possible to make transactions anonymously without revealing your real identity. Whereas transactions made through the bank system attract a lot of charges and fees some upfront and others hidden, transactions made through Cryptocurrencies attract only upfront charges that are very small. There are no hidden charges or fees. These advantages make Cryptocurrencies worthy investments. Many retailers have recognized that the Cryptocurrency world has grown rapidly over the years and hence are now accepting Cryptocurrencies as a mode of payment.
As I mentioned earlier, currently there are hundreds of Cryptocurrencies and it’s impossible to know all of them. Most of these Cryptocurrencies have been growing at a very fast rate. Just to mention a few of them; to start with Bitcoin, which is the most popular and the commonly used Cryptocurrency, the price for one Bitcoin is currently above the $1,000 mark and Bitcoin experts have stated that its price will continued to grow through 2017. Ethereum which is the number two Cryptocurrency only after Bitcoin also has some significant returns, this coin has grown forty times in the past two years. It grew from $8.24 to about $10.62, that’s a 28.88% increase in January (2017) alone. Other coins that have grown over the years and are considered worthy investments in 2017 include DogeCoin and LiteCoin. Monero is another Cryptocurrency that grew exponentially in 2016, this is because it has perfected the privacy or anonymity feature of Cryptocurrencies.
There are many ways in which one can acquire digital coins. You may decide to buy them online from exchanges and brokers such as CoinFloor and CoinCorner or you may decide to mine them. For you to mine them you will need to invest in mining hardware and software. You may choose to be a solo miner or a cloud miner. For cloud miners consider Genesis Mining. Genesis Mining offers miners an easy way to purchase hash power since they specialize in building the most efficient and reliable mining rig to help their clients mine profitably and for a long time. You only need to set up an account with them and fund it for you to start mining. There are no hidden charges with Genesis Mining i.e. it’s very transparent and you don’t have to go through the hassles of set up and maintenance of a mining rig. After mining you may decide to sell them and make some money.
There are other ways besides mining for you to make money from Cryptocurrency. You may decide to be a Crypto trader which is quite similar to Forex trading. The only difference is the pairing i.e. BTC/USD and so on. There are more than fifty pairings involving Cryptocurrencies so you only have to choose the one that best suits you. You may also decide to be a speculator by investing now in Cryptocurrencies that have huge potential such as Monero, then wait for a few months when their value grows and sell them. With the USD declining (by 2.6% by the end of January), people will tend to look at alternative currencies such as Cryptocurrencies. 2017 promises to be a good year for the Cryptocurrency world.
Bitcoin Girl "Official Music Video" by petercool217
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