“Crypto” – or “cryptocurrency” – is a type of software system that provides transaction functionality to users over the Internet. They are the most important features of the system Decentralized Nature – usually provided by Blockchain database system.
Blockchain and “cryptocurrency” have recently become staples of the global zeitgeist; Usually as a result of the “price” of Bitcoin skyrocketing. This has led to millions of people participating in the market, with many “Bitcoin Exchanges” undergoing massive infrastructural stress as demand increases.
The most important thing to realize about “crypto” is that while it actually serves one purpose (cross-border transactions over the Internet), it does not provide any other financial benefit. In other words, its “intrinsic value” is strictly limited to its ability to transact with other human beings; Not in price saving/promotion (which is what most people call it).
The most important thing you need to understand is that “Bitcoin” and the like Payment network – Not “Currency”. This will be covered in more depth in a second; The most important thing to realize is that “getting rich” with BTC isn’t about putting people in a better economic position – it’s just a process of being able to buy a “coin” at a lower price and sell it higher.
To this end, when looking at “crypto”, you must first understand how it actually works and where its “value” actually lies…
Decentralized payment network…
As mentioned, the key thing to remember about “crypto” is that it is primarily a Decentralized payment network. Think Visa/Mastercard without the central processing system.
This is important because it highlights the real reason why people are starting to look more deeply into the “Bitcoin” proposition; This gives you the ability to send/receive money from anyone around the world, as long as they have your Bitcoin wallet address.
The reason it features a “price” for different “currencies” is because of the misconception that “Bitcoin” will give you the ability to make money by being a “crypto” asset. It doesn’t.
The only The way people are making money with Bitcoin is by “raising” its price – buying “coins” at a low price, and selling them at a much higher price. While this worked well for many people, it was actually based on the “bigger fool theory” – basically saying that if you manage to “sell” the coins, it’s to a “bigger fool” than you.
This means that if you want to get involved in the “crypto” space today, you are essentially buying any “coin” (even “alt” coin) that is cheap (or cheap) and riding them up until you sell them later. . Since none of the “coins” are backed by real-world assets, there’s no way to predict when/if/how it will work.
For all intents and purposes, “Bitcoin” is a spent energy.
The epic rally in December 2017 signaled mass adoption, and while its price will likely continue to rise in the $20,000+ range, buying a coin today would essentially be a huge gamble that would happen.
Smart money is already looking at most of the “alt” coins (Ethereum/Ripple etc) that have relatively low prices, but are constantly increasing in price and adoption. The key thing to look at in the modern “crypto” space is how the various “platform” systems are actually being used.
Such as the fast-paced “tech” space; Ethereum & Ripple look like the next “Bitcoin” – focusing on how they’ll enable users to use “decentralized applications” (DApps) on top of their underlying networks to gain functionality
This means that if you look at the next level of “crypto” growth, it will almost certainly come from the various platforms that you are able to identify out there.