“Crypto” – or “cryptocurrencies” – is a type of software that provides functionality to users on the Internet. The most important part of the system is theirs decentralized environment – provided by blockchain database system.
Blockchain and “cryptocurrencies” have become big things in the global zeitgeist recently; mainly due to the “price” of Bitcoin going up. This has caused millions of people to participate in the market, and many of the “Bitcoin exchanges” are facing major infrastructure problems as demand has increased.
The most important thing to understand about “crypto” is that although it has a purpose (transactions through the Internet), it does not provide any other financial benefit. In other words, his “intrinsic value” is limited to his ability to interact with other people; You are NOT saving/spreading value (which is what most people see).
The most important thing you need to understand is that “Bitcoin” is something like that payment network – NOT “money”. This will be discussed in depth in a second; the most important thing to note is that “getting rich” with BTC is not a matter of giving people a good financial position – it’s just a way to buy “money” at a low price and sell it at a higher price.
To do this, when looking at “crypto”, you must first understand how it works, and where its “value” really is…
Decentralized Payment Networks…
As mentioned, the important thing to remember about “Crypto” is that it is often a Decentralized payment network. Consider Visa / Mastercard without a centralized processing system.
This is important because it shows the real reason why people are starting to look into the concept of “Bitcoin” seriously; it allows you to send/receive money from anyone around the world, as long as they have your Bitcoin wallet address.
The reason this takes “value” to different “currencies” is because of the misconception that “Bitcoin” somehow allows you to earn money by being a “crypto” economy. It is not.
The ONLY The way people have been making money with Bitcoin has been because of the “rising” of its value – buying “money” at a low price, and selling it at a higher price. Although it worked for many people, it was based on a “very stupid theory” – basically saying that if you can “sell” the money, it’s a “bigger fool” than you.
This means that if you are looking to participate in the “crypto” sector today, you are looking to buy “coins” (even “alt” coins) that are cheap (or cheap), and increase their value. the price goes up until you sell them later. Because no “money” is backed by real wealth, there is no way to know when/if/how this will work.
Future Growth
For all intents and purposes, “Bitcoin” is a usable energy.
The December 2017 auction saw massive adoption, and while prices will continue to grow to $20,000+, buying one of the walls today would be a huge gamble to make that happen.
Smart money is already looking at many “alt” coins (Ethereum/Ripple etc) that have low value, but are constantly growing in value and adoption. An important thing to look at in the current “crypto” environment is how the various “platform” systems are being used.
This is the area of fast “technology”; Ethereum & Ripple are seen as the next “Bitcoin” – they are looking for a way in which they can give users the opportunity to use “dedicated applications” (DApps) on top of their original network to work. work.
This means that if you are looking for the next level of “crypto” growth, it will almost always come from different platforms that you can identify out there.