Aired 8 months ago
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Cryptocurrency - The KISS Theory.
I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing, but that will soon be developed, is a reliable e-cash – a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.
Milton Friedman
Cryptocurrency the future of money.
What Is Cryptocurrency? Crypto’s for short, are digital assets using encryption to regulate, mine, and verify transfer of funds.
The first time I had heard of crypto’s was of course BTC or Bitcoin. This was back in 2007. Wish, I thought back then the way I do now. My financial situation would be in a much better state.
For this post when I refer to crypto’s I will be using BTC or bitcoin. Just so we are on the same page BTC is not the only Crypto out there. At last count, I believe there was something like 400 and growing.
How do cryptos work?Cryptocurrency are traded peer to peer by the use of digital wallets like COINBASE. this is the wallet that yours truely uses. These wallets use public address keys and private Keyes to allow transactions.
When a peer to peer transaction is started it is queued up then broadcasted to the network then is prepared to uploaded or recorded to the blockchain. The transaction is then recorded to the block chain in a process called mining.
The transactions on the blockchain are public records the amount of BTC sent is recorded. However, who sent the BTC is encrypted. Making it some what antonymous.
Each of the transactions are recorded and lead back to set of digital keys. These keys are like your “bank account†once these BLOCKS are created by miners they are added to the chain hence the term BlockChain.
Blockchain
What is blockchain? Simply put, a “blockchain†is a ledger. In this ledger is all the transactions or “Blocksâ€. When a crypto is used to buy something a new block is added to the chain.
In order for the “Block†to be added. All users of the blockchain are sent a copy of the new ledger. Then certain users of the blockchain called “Miners†then attempt to solve a complicated math problem using software.
When the equation is solved, the new block is added. The first Miner to solve this complicated equation earns a BTC or what ever the going rate is at the time.
Why should you consider crypto?I’m not going too speak for you and I am NOT a financial advisor and I am NOT giving you OR ANYONE ELSE FINANCIAL ADVICE.
Now, that I got that out of the way. I invest in BCT, because I do believe that a cryptocurrency, maybe not bitcoin but another blockchain driven coin. Will in the not far off future be the main form of currency for many countries.
The Great Recession. That changed everything for me.
Why do I believe that? After, watching but not knowing or understanding what I was witnessing until the crash happened. Really opened my eyes to the economic problem, not only here in the United States but around the world.
Here is the kicker, we didn’t fix anything we made it worse. Remember, “There to BIG to FAIL.†yeah, well “THEY†are bigger. Meaning that the next economic crisis is going to be bigger and effect many more people.
After this crash, or reset. I believe that the U.S. dollar will no longer be the worlds fiat goto currency. This combined with massive inflation, due to money printing or quantitative easing. Will cause most people to abandon the dollar for something more secure hence Cryptocurrency. Example, Venezuela.
Where to buy cryptocurrency?You can obtain crypto in many different ways. The easiest way is to just purchase them from exchanges. You can also get them as payment for goods or services. You can exchange your fiat currency for crypto, you can even get crypto for crypto.
Cryptocurrency Wallets
If your going to buy cryptos then your going to need a “walletâ€. There are many different types of crypto wallets. But, I like to keep thing simple. I’m going to cover the main 3 wallets.
Desktop Wallet – App. Driven. Connects directly to the coin. Thus is the most used type of wallet.
Mobile Wallet – this wallet is primarily ran from a smartphone.
Hardware Wallet – specific devices USB drives, dedicated hard drives. Put device online to make purchases or get data ect…
Paper Wallet – print out your wallets QR Code. This allows to send, receive your crypto by scanning the code with your phone or basic scanner.
How/where to use crypto?Here in the U.S. the use of BTC or crypto is not widely used. The things I use it for is basically peer to peer, or buying other cryptos.
My wife also uses crypto. It took some encouragement but after some persuading she finally did. Now, when she asks me for bill money. I just send her what ever she needs in BTC. Ahe thenputs that into her bank account.
As far as buying products. I have used BTC to buy this very tablet that I am writing this post on. Unfortunately, in the couple years that I have been investing that is the only product I have bought with crypto.
Protecting Your Cryptocurrency
How to PROTECT YOUR CRYPTO.With any type of money you want to protect it right? You earned it now how do you keep your digital assets safe.
First, make sure that you backup all your security keys. Keep them in a safe place. You lose these you lose all your money.
That’ell Learn Ya.
This one I know all to well. I had the crypto wallet TOAST it is a wallet specifically for a crypto currency called “Ripple†or XRP. I had around $70.00 of XRP It had been awhile sine I used the wallet and when I went to move my XRP from the TOAST wallet to another wallet it asked me for my security phrase. Didn’t have it and now I don’t have $70.00 well, I’m sure its over $100.00 now. An expensive lesson. It could have been a lot more of a loss.
When you do decide to use them. Be sure to send BTC to BTC WALLET. This is important. You send your BTC to a different wallet like ETH. (ETH=Etherum different crypto.) You will lose your BTC FOREVER.
Use 2 time verification. This is a very effective and easy way to keep would be thieves from easily hijacking your crypto funds.
Read why I believe a Faraday cage could potentially save you from losing your digital assets.
Conclusion
I hope that this quick but thorough overview of what cryptocurrency are, how to buy them, where, how to store them, use them, and last and most important how to protect them. Hope this post was helpful. Please Like, Tweet and Share with your friends.
For More In depth Crypto know how Click This Link.
