Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Bitcoin, Ethereum and Ripple

A Bit About Bitcoin and Cryptocurrencies (in Case You Didn't Already Know)

The below content is a very brief summation of various cryptocurrencies, for those who need/want a quick introduction. I have started writing a book to serve as a quick introduction yo cryptocurrencies and mining, for those individuals in a hurry. However, due to more pressing financial constraints and concerns, that project has been put on the back burner while I attempt to regain control of my life and finances. (I'm not succeeding there, having too many demands on my time and a procrastination problem as well.)

Bitcoin: The First Cryptocurrency

In the world of cryptocurrencies, Bitcoin is the first modern digital currency. It was invented in 2008 (following a houding market crash due to what is known in the relevant financial circles as "dub-prime mortages": issuing mortages to people who're unlikely to be able to pay them), by an anonymous and mysterious programmer using the pseudonym Satoshi Nakamoto. (The first implementation was in 2009.) Satoshi planned to build an electronic payment system that is not dependent on government or financial institutions and is entirely decentralized. He focused on creating a network that is independent of central authority (banks and governments) or servers.

In 2009, when Bitcoin was introduced, people didn’t understand its underlying technology (*id est* Blockchain). However, over time it gained huge popularity across the world and became the first modern cryptocurrency. Many developers tried creating cryptocurrencies but failed miserably. (Cough, cough, Justin Sun). Others (such as Vitalik Buterin) have created successful alternatives to Bitcoin.

Ethereum: The Second Cryptocurrency

Ethereum is a blockchain-based platform created by Vitalik Buterin. It was intended to solve a number of problems with Bitcoin and completely revolutionise the way transactions are carried out, through the use of Smart Contracts. However, as many posters throughout the cryptosphere have noted, it has problems of its own (such as high transaction fees).

Ripple: Cryptocurrency for International Money Exchange (Forex)

Ripple (XRP) is a cryptocurrency created by bankers. It is intended to be a go-between when doing international money exchanges (such as dollars to euros or fiat to other crypocurrencies), in order to mitigate the fees that banks charge (see below). Ripple is meant to be a catch-all "any" currency to represent any currency within a transaction.

Why Are Bitcoin and Other Cryptocurrencies so Popular?

Unlike traditional currencies, Bitcoin has *worth*, not *value*. It cannot be denied that its market is highly volatile and its value keeps on fluctuating a lot. (This is a side effect of so few people investing, HODLing and trading in it, compared to the fiat currency of a nation such as the USA. As more people take hold of it and learn to put their emotions aside, the market will stabilise somewhat — although there are no circuit breakers/controls like in a stock exchange). The main reason behind the skyrocketing value of Bitcoin (in fiat terms, not that one should pay much heed to that) is its pervasive usage across the world. Many businesses and individuals are using Bitcoin as a payment method instead of traditional currencies. (Here's hoping more come on board soon.) Most consumers are using Bitcoin (and other cryptocurrencies) because of the high convenience, ease of use and ultimate security that blockchain technology offers them.

Cryptocurrencies such as Bitcoin (Ethereum, Litecoin, Dash, etc.) are gaining huge popularity because a plethora of customers are accepting them as means of payment in their businesses. Through this, trading has become a lot easier and more accessible. People are choosing real estate companies, ISPs, (even coffee shops) and other businesses that accept crypto payments. From looking at the growth rate and utility of Bitcoin, one can predict that Bitcoin’s worth and relevance will rise with more retailers and businesses accepting it as a payment method.

Quick, Easy, and Cheap Transactions

Bitcoin (as with other cryptocurrencies) is not dependent on central authority and banks. This means there are no intermediaries to create bottlenecks, unnecessary charges and/or censorship. With no intermediaries being involved, there is only the network and/or miners' fee. This fee is usually dependent on how busy the network is. However, with many of the available wallets, you can set the fee yourself. Just keep in mind that the lower the fee, the longer it takes to get network confirmations (and there is a minimum viable fee). Traditionally, transferring funds through banks internationally has been a time-consuming and expensive process, since banks usually charge huge transaction fees from both the sender and receiver and take several days to complete the transaction. Consequentially, Bitcoin (and Ripple) is still more cost-effective when sending to another country (even with network/transaction fees).

Highly Volatile Markets

National governments, state actors and parastatal institutions do not control the Bitcoin market; the users control it. However, since there are so few users (distributed throughout the world), the Bitcoin market is highly volatile and it behaves according to demand and supply. A volatile market is not for the faint-hearted nor to be trifled with. If you don't know what you're doing/how to trade effectively, you can potentially lose all your investment. Proper knowledge of crypto investing and trading methods is vital if you wish to make exceptional long-term gains. It is vital to invest in a particular cryptocurrency at low prices and exchange them when the price rises. (Do not ever sell your crypto for fiat; that's a surefire way to lose.)

The reason for the volatile markets of cryptocurrencies is largely due to FUD about the various uncertainties related to the legitimacy of them. Despite volatile markets, Bitcoin, Ethereum and Dash have great impacts on businesses and are expected to become the most popular cryptocurrencies for dealing with them.

Less Risk of Fraud

Most investors are attracted to Bitcoin because it is completely digital and largely devoid of human factors/vulnerabilities. This factor is quite appealing to traders and investors. There are unlikely to be fraud issues because it has no physical appearance and is not controlled by a central authority or financial institution. (However, it is not completely impervious to the occassional hack, but it is mostly the exchanges that fall victim to them.) As with all online technologies and spaces, be aware of fake companies and scammers that are out to pull the rug from under you and make off with your crypto. Do your own research beforehand. At the very least, run a query on a company/organisation through Presearch before buying, selling or trading any cryptocurrencies.

Post thumbnail photo by Worldspectrum from/on Pexels

How do you rate this article?


Great White Snark
Great White Snark

I'm currently seeking fixed employment as a S/W & Web developer (C# & ASP .NET MVC, PHP 8+, Python 3), hoping to stash the farmed fiat and go full Crypto, quit the 07:30-18:00 grind. Unsigned music producer; snarky; white; balding; smashes Patriarchy.

Cryptographic Anarchy: (Mis)Adventures in Crypto
Cryptographic Anarchy: (Mis)Adventures in Crypto

The content of this blog is exclusively to do with online privacy/security, cryptography and cryptocurrency: Understanding it, investing in it, mining it (in groups/crowds), developing/programming it, the social problems it aims to solve and the various ways to make more of it (or not, as various losses and failures happen). Let's get away from banksters, Capitalists and fiat, to an anarcho-syndicalist commune. Banner image: Blogger's own. Contemplating making an HD NFT version if there's interest.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.