So what is this thing called cryptocurrency. The definition is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
That all sounds very dull and not at all as exciting as it actually is. So lets start from the beginning.
Starting in 1998 cryptocurrency started with B-money and Bit Gold. However they never came to full development and so the projects stalled.
In 2008 a paper called “Bitcoin – A peer to peer electronic cash system” [https://bitcoin.org/bitcoin.pdf] was published by Satoshi Nakamoto, side note we have no idea who this person is and they have never stepped forward to claim there invention.
Then in 2009 we got our first established cryptocurrency that I’m sure you have all heard about and is probably why you are reading this blog, Bitcoin [https://www.bitcoin.com/] and here is the kicker. If you had invested then with $1,000 you would now have around $36 million today!
Now I have your attention and your all seeing the dollar signs in your eyes lets get a little technical and get into how this all works, why you should be interested in it and how it will change the world.
Cryptocurrency is a type of digital peer to peer currency. This means it operates independently of all centralised banks. This has some people worried and others very excited. As this peer to peer system means you can make transactions with out fees and with out limits. It is also completely anonymous.
Keeping all of this safe is the Blockchain [https://en.wikipedia.org/wiki/Blockchain] which is simple terms is a ledger that keeps track of all transactions and is verified multiple time before the transaction is authorised.
Who makes these verifications is the next question and this is the peer-to-peer collective also known as Miners. Any one can start mining and reap the rewards. Mining has become more complex as cryptocurrency has developed and is becoming main stream. However it is still possible to set up a small mining operation and make good money.
Now we have the basics down we can get into the more fun stuff. Bitcoin is not the only cryptocurrency there are over 1,800 and growing every day. CoinMarketCap [https://coinmarketcap.com/] is a wonderful website to find out about all the coins and tokens that are available.
But why so many I hear you say. Well cryptocurrency has opened a door to the average person to invest in new companies. So each coin or token represents a new business. I like to call it Crowd Surfing on Steroids.
Imagine being able to invest in Facebook when it first started. Thats what cryptocurrency is letting business and the normal person todo. For example Steem [https://steemit.com/] is a rival to Facebook and you can invest in them today.
So how can you invest today? First you need to change your fiat cash (dollars, sterling, etc) into cryptocurrency. At the moment the best way to do this is via Coin Base [https://www.coinbase.com/] if you are in the USA and BitStamp [https://www.bitstamp.net/] if you are in the EU.
Once you have set up these accounts and you have purchased your basic coins you can then start to explore the different exchanges and buy more exciting coins such as Steem. My two favourites are Binance [https://www.binance.com/] and KuCoin. [https://www.kucoin.co]
Once you have these accounts all set up your ready to go. You can day trade (if you have the nerve) or you can long term invest in different businesses that you believed in and hold onto there coins or tokens. As you will read again and again you must do your own independent research before investing. We are not financial advisors and it is always best to research cryptocurrency and your investments before you make them.
You can find lots of information on Youtube, Twitter and there are lots of Telegram groups starting and filling your days with information. Be aware there are lots of scams out there. Things called Pump and Dump schemes which just want your money and may more tricks. Please be informed and do your research first.
I would recommend Altcoin Buzz [https://altcoinbuzz.io/] as your first stop they have a website and also a youtube channel [https://www.youtube.com/channel/UCGyqEtcGQQtXyUwvcy7Gmyg] with daily videos about what is happing in the cryptocurrency world.
As cryptocurrency becomes more main stream and it is used more and more. The worlds wealth will shift from oil to innovation. There are talks of controlling power demands with the power of the blockchain, eliminating world hunger and poverty and uniting the world as one. This is just the beginning and I hope you join me on the ride.
Welcome to the geek revolution lets take over the world together!