Page 19 - Equity Movement Magazine-Issue2

CRYPTO CURRENCY RESOURCE (CONT’D)
Because its exchange value is the same everywhere in
the world. People living in countries subject to constant
currency devaluation, high inflation or unstable
governments, are purchasing cryptocurrency to avoid
losing their savings.
Investors and entrepreneurs say cryptocurrency, like
bitcoin, that have no physical backing and can be sent
electronically from one person to another, will be the
preferred payment choice of people in
countries around the globe in just a
matter of years. Some say bitcoin is the
preferred choice for those who use it for
illegal transactions. Still, cryptocurrency
experts say it’s here to stay and will
transform the way money is exchanged.
Cryptocurrency spans all demographics. In
fact, those accustomed to using platforms
such as PayPal, Google Pay and mobile
banking will experience a quicker use level
when compared to those who are used to
going into a physical bank. Imagine right now there are
those who have inserted a chip under their skin with
their “digital financial imprint” with access 24/7. Instead
of an implanted chip, cryptocurrency uses a digital
wallet. The wallets give users an address where
cryptocurrency can be sent from other users, but most
websites require users to link to a bank account.
A bitcoin can be divided out to eight decimal places, so
a user can send another person 0.00000001 bitcoin. In
today’s market a bitcoin would cost about $5,151.55
United States Dollar (As of 4/28/19). All bitcoin
transactions are tracked by a decentralized network of
computers around the world, not by a government or
bank. Anyone can join the computer network.
The record of these bitcoin transactions on the network
is known as the blockchain, essentially a permanent
ledger. In order to provide a bigger return on
investment, programmers within the blockchain
network have to “mine” for more tokens. They
compete to process new transactions on the blockchain.
According to the bitcoin network rules, which are
decided by everyone maintaining the blockchain, the
mining reward is halved every four years. Anyone can
set their computer up to mine bitcoin. The successful
programmer wins 12.5 bitcoin. Satoshi made it such
that the bitcoin network would have a finite number of
digital tokens. New coins will only be mined until there
are 21 million in existence, which is expected to happen
in the year 2140. There are multiple ways to buy bitcoin.
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Meeting in person, bitcoin ATM, wallet to wallet by
scanning a QR code and traditional cryptocurrency
exchanges.
Cryptocurrency still has skeptics that argue that bitcoin
is volatile, unregulated, unpredictable and
unsustainable. Of course, as more cryptocurrency pop
up and gets traded on mainstream exchanges, there are
bound to have more issues come up such as hacking.
For the most part, most transactions are
typically people buying and selling bitcoin
to each other.
So, what’s the future of cryptocurrency?
Bitcoin is just the start of a cryptocurrency
and the technology it utilizes. Other
popular cryptocurrency includes Ethereum,
Ripple, Litecoin, Bitcoin Cash and Monero.
Digital cryptocurrencies are being created
for all types of uses like real estate, among
other industries.
Blockchain technology is useful for more than just
bitcoin. It can be used for tracking ownership, and
digital assets. It can create new ways to do business and
offer new services to people throughout the world. Just
think, no one thought the internet would be where it is
today. Hmmm….
To cryptocurrency or not to crypto? Either way, the key is
becoming familiar with what is changing how we view
currency and adjust based on information.
GLOSSARY OF TERMS
Bitcoin: a decentralized, peer-to-peer, global
cryptocurrency and payment system created in 2008 by
an unknown programmer called Satoshi Nakamoto.
Bitcoin mining: the process of how bitcoin transactions
are verified and added to the blockchain, resulting in
new bitcoins being released.
Blockchain: a global network of computers that tracks
and creates a database of all bitcoin transactions.
Coinbase: one of the leading digital currency exchanges
brokering cryptocurrencies Bitcoin, Bitcoin Cash,
Ethereum, Litecoin.
Cryptocurrency: a digital or virtual currency that is not
regulated by any central authority or government.