Crypto explained for [ beginners ] : Bitcoin,Ethereum, [ Cryptocurrency & Blockchain ] what's driving the craze for investor

 Crypto : Bitcoin,Ethereum , Cryptocurrency & Blockchain what's driving the craze for investor 

 Cover Image of Crypto explained for [ beginners ] : Bitcoin,Ethereum, [ Cryptocurrency & Blockchain ] what's driving the craze for investor 

 Economics is boring this is a lie we've

been told all our lives but accept it or

not our life depends on it

war poverty revolution they all hinge on

economics which itself rests on one key

concept

money the ultimate catalyst for the

worst and the best of human endeavor

like it or not money defines our social

status it also compromises our morals

sometimes

some people spend their lives chasing

these rectangular pieces of paper

some are willing to fight even kill for

it

but are we headed towards the end of

money as we know it

will we have to burn our rupees dollars

and euros

transform every single penny we have

into digital binaries

or should i say to cryptocurrency

is it really the new goal the future of

money or is it gambling

a recipe for financial disaster if these

are questions you've been asking

yourselves

what the internet did for information

digital currency is doing for money

it is revolutionizing transactions and

eliminating banking

not a week goes by when cryptocurrencies

do not dominate the news there are

record-breaking price surges every other

day

your colleagues won't stop talking about

it your friends want you to invest

what do you do you weigh the pros and

cons

understand where you're putting your

money and that's where the problem lies

most of us do not understand money and

it's handling it's a life skill

we were not taught in school beyond the

basic computing

now if money changes form the first

thing you try to do is understand it

and that's what we'll do today and if

you're worried that we are going to get

too technical do not

it's all plain english let's start with

understanding

three basic concepts bitcoin blockchain

and cryptocurrency what do they mean

here are some quick definitions

first bitcoin it is the name of the best

known cryptocurrency

like the euro is the name of one type of

currency bitcoin

is digital and decentralized it exists

electronically

it's a computer code only and i'll

explain in a bit

for now the second definition

cryptocurrency it is a medium of

exchange for bitcoin

just as notes and coins are for rupees

and dollars

crypto means data encryption it

basically

ensures the security of transactions now

you may have heard about

your messages being encrypted it means

they're secure

it's the same for crypto it's encrypted

data

but unlike debit and credit cards

cryptocurrency has no physical

counterpart

it's the only form it exists in the

third definition is blockchain

it is the technology that enables the

existence of cryptocurrencies

think of it like a computer file that

stores data

but this is a file across a vast network

of computers

and it's not exclusive to bitcoin and

crypto blockchain has many many uses

this is just one of them so simply put

this is everything we don't understand

about money combined with everything we

don't understand about technology

now don't lose your head if you do not

get it because most people don't

and surveys have shown this only one out

of ten people understand how

cryptocurrencies work

and one in three cryptocurrency

investors themselves

know little to nothing about it take

bitcoin for instance

no one even knows who created it it has

been in circulation since 2009

but the identity of its creator or

creators

remains a mystery to this day over the

years many people have claimed to be

or have been called nakamoto but there's

still no clarity

____________

Related Pages:

Read more about Ethereum ETH

Find out more about Solana SOL 

Learn more about SHIBA INU

Find out more about Cardano ADA

Learn more about Litecoin LTC

Find out more about Internet Computer ICP 

Learn more about Binance coin BNB

___________________________

whether it's one person or a group of

people no one really knows

that i have nothing to do with bitcoin

nothing to do with developing

i was just an engineer doing something

else

what nakamoto did though was solve a

potential flaw in digital

banking double spending now what's that

let me explain through an example if a

person buys a sandwich worth ten dollars

for instance they cannot spend that same

ten dollar bill anywhere else

but when the same amount is paid

digitally

some people can manipulate systems and

spend the same ten dollars

more than once and that in simple words

is double spending to stop this from

happening you have banks and credit card

companies acting as middlemen

so they vouch for the transactions that

you make and they prove that you've

already paid for something

at the same time they take their own cut

of the transactions you make

enter bitcoin it solves both these

fiddly problems

like i said it is decentralized meaning

there is no third party controlling it

instead it is regulated by its own

community of users

and all of them record all of their

transactions at the same time

any attempts to fool the bitcoin

community will ideally get noticed

and the payment will get rejected no

single user or government or bank or

credit card company can force a

fee on your payment or control its flow

plus

bitcoin is said to be secure from the

effects of currency debasement and

inflation

does sound perfect doesn't it well it

isn't bitcoin is not without problems

the transactions are irreversible

once you've paid you've paid you will

not get a penny back

plus it's extremely volatile the value

keeps fluctuating

on the 14th of april it was worth 63 000

us dollars one bitcoin

on the 23rd of april it sank below 50

000

why does this happen you see like

everything else the price of bitcoin is

driven by demand and supply

when the demand increases the prices go

up when people see the price going up

they feel like cashing in so they try to

sell their own bitcoin

and this leads to more people wanting to

sell but sometimes

there are not enough buyers so they

lower their price

and on it goes like a roller coaster

ride so fluctuation

is problem number one the second problem

has to do with security

the digital wallets containing bitcoin

are stored in

phones and computers and we all know how

vulnerable

these are two theft and hackers in 2016

a los angeles hospital ended up spending

17 000 us dollars on illegal

transactions

after hackers took control of its

computers for more than a week

so if you have a good amount of money

invested in bitcoin

create passwords that are difficult to

guess also stop visiting those weird and

suspicious websites

the same rules apply for every other

cryptocurrency

which brings us to the question how many

are there

4 000 plus there are more than 4 000

crypto currencies in the world why do so

many of them exist because why not

the key software to create a crypto is

open source which basically means

anyone and everyone can create them so

there's litecoin

name coin peercoin grid coin ripple

prime coin

order mazer coin stellar and this

dogecoin a cryptocurrency that started

off as a meme

it has now become mainstream in 2013 two

software engineers used the image of a

dog

and made this cryptocurrency as a joke

their aim was to make fun of how people

would invest in anything and guess what

people did just that on the 20th of

april dogecoin's market capitalization

surged to more than

50 billion dollars it ended up being

worth

more than ford and marriott all thanks

to dogecoin supporters

who used hashtags and social media posts

to fuel its price

and this episode is both laughable and

fascinating it tells you about the times

we're living in

where online campaigns can have a

surprisingly big impact on the market

price of

anything an age where parody can be

turned into a real

asset dogecoin is worth 50 billion

dollars because

people believe it is worth 50 billion

dollars

you know what they said about the power

of what you believe in perhaps this was

it

it's the same in the case of bitcoin the

fundamental reason

it has value is because people agree it

has value

think of it like these shoes with human

blood they're worth

one thousand dollars why because it's

manufacturer thought

someone would pay one thousand dollars

for such shoes

who by the way was absolutely right

because all of these shoes have been

sold out

what does this tell you that a vast

majority of people investing in

cryptocurrency are just responding to

the craze around it

they're giving it a shot what about

governments

these countries recognize cryptocurrency

the uk is working on something called

brit coin russia does not recognize

cryptocurrency

china cracked down on it but then it

shifted position

now beijing calls it alternative

investment

in india cryptocurrency is not legal

tender but there are people who invest

in it

because people around them do it the

bottom line is this

the future of currency is digital there

is no doubt about it

but when you invest you must know that

you're not just investing you're also

gambling

and if you're ready to gamble you must

also be prepared to win or loseconomics is boring this is a lie we've

been told all our lives but accept it or

not our life depends on it

war poverty revolution they all hinge on

economics which itself rests on one key

concept

money the ultimate catalyst for the

worst and the best of human endeavor

like it or not money defines our social

status it also compromises our morals

sometimes

some people spend their lives chasing

these rectangular pieces of paper

some are willing to fight even kill for

it

but are we headed towards the end of

money as we know it

will we have to burn our rupees dollars

and euros

transform every single penny we have

into digital binaries

or should i say to cryptocurrency

is it really the new goal the future of

money or is it gambling

a recipe for financial disaster if these

are questions you've been asking

yourselves

i have a story to share hello and

welcome to gravitas plus i'm

what the internet did for information

digital currency is doing for money

it is revolutionizing transactions and

eliminating banking

not a week goes by when cryptocurrencies

do not dominate the news there are

record-breaking price surges every other

day

your colleagues won't stop talking about

it your friends want you to invest

what do you do you weigh the pros and

cons

understand where you're putting your

money and that's where the problem lies

most of us do not understand money and

it's handling it's a life skill

we were not taught in school beyond the

basic computing

now if money changes form the first

thing you try to do is understand it

and that's what we'll do today and if

you're worried that we are going to get

too technical do not

it's all plain english let's start with

understanding

three basic concepts bitcoin blockchain

and cryptocurrency what do they mean

here are some quick definitions

first bitcoin it is the name of the best

known cryptocurrency

like the euro is the name of one type of

currency bitcoin

is digital and decentralized it exists

electronically

it's a computer code only and i'll

explain in a bit

for now the second definition

cryptocurrency it is a medium of

exchange for bitcoin

just as notes and coins are for rupees

and dollars

crypto means data encryption it

basically

ensures the security of transactions now

you may have heard about

your messages being encrypted it means

they're secure

it's the same for crypto it's encrypted

data

but unlike debit and credit cards

cryptocurrency has no physical

counterpart

it's the only form it exists in the

third definition is blockchain

it is the technology that enables the

existence of cryptocurrencies

think of it like a computer file that

stores data

but this is a file across a vast network

of computers

and it's not exclusive to bitcoin and

crypto blockchain has many many uses

this is just one of them so simply put

this is everything we don't understand

about money combined with everything we

don't understand about technology

now don't lose your head if you do not

get it because most people don't

and surveys have shown this only one out

of ten people understand how

cryptocurrencies work

and one in three cryptocurrency

investors themselves

know little to nothing about it take

bitcoin for instance

no one even knows who created it it has

been in circulation since 2009

but the identity of its creator or

creators

remains a mystery to this day over the

years many people have claimed to be

or have been called nakamoto but there's

still no clarity

whether it's one person or a group of

people no one really knows

that i have nothing to do with bitcoin

nothing to do with developing

i was just an engineer doing something

else

what nakamoto did though was solve a

potential flaw in digital

banking double spending now what's that

let me explain through an example if a

person buys a sandwich worth ten dollars

for instance they cannot spend that same

ten dollar bill anywhere else

but when the same amount is paid

digitally

some people can manipulate systems and

spend the same ten dollars

more than once and that in simple words

is double spending to stop this from

happening you have banks and credit card

companies acting as middlemen

so they vouch for the transactions that

you make and they prove that you've

already paid for something

at the same time they take their own cut

of the transactions you make

enter bitcoin it solves both these

fiddly problems

like i said it is decentralized meaning

there is no third party controlling it

instead it is regulated by its own

community of users

and all of them record all of their

transactions at the same time

any attempts to fool the bitcoin

community will ideally get noticed

and the payment will get rejected no

single user or government or bank or

credit card company can force a

fee on your payment or control its flow

plus

bitcoin is said to be secure from the

effects of currency debasement and

inflation

does sound perfect doesn't it well it

isn't bitcoin is not without problems

the transactions are irreversible

once you've paid you've paid you will

not get a penny back

plus it's extremely volatile the value

keeps fluctuating

on the 14th of april it was worth 63 000

us dollars one bitcoin

on the 23rd of april it sank below 50

000

why does this happen you see like

everything else the price of bitcoin is

driven by demand and supply

when the demand increases the prices go

up when people see the price going up

they feel like cashing in so they try to

sell their own bitcoin

and this leads to more people wanting to

sell but sometimes

there are not enough buyers so they

lower their price

and on it goes like a roller coaster

ride so fluctuation

is problem number one the second problem

has to do with security

the digital wallets containing bitcoin

are stored in

phones and computers and we all know how

vulnerable

these are two theft and hackers in 2016

a los angeles hospital ended up spending

17 000 us dollars on illegal

transactions

after hackers took control of its

computers for more than a week

so if you have a good amount of money

invested in bitcoin

create passwords that are difficult to

guess also stop visiting those weird and

suspicious websites

the same rules apply for every other

cryptocurrency

which brings us to the question how many

are there

4 000 plus there are more than 4 000

crypto currencies in the world why do so

many of them exist because why not

the key software to create a crypto is

open source which basically means

anyone and everyone can create them so

there's litecoin

name coin peercoin grid coin ripple

prime coin

order mazer coin stellar and this

dogecoin a cryptocurrency that started

off as a meme

it has now become mainstream in 2013 two

software engineers used the image of a

dog

and made this cryptocurrency as a joke

their aim was to make fun of how people

would invest in anything and guess what

people did just that on the 20th of

april dogecoin's market capitalization

surged to more than

50 billion dollars it ended up being

worth

more than ford and marriott all thanks

to dogecoin supporters

who used hashtags and social media posts

to fuel its price

and this episode is both laughable and

fascinating it tells you about the times

we're living in

where online campaigns can have a

surprisingly big impact on the market

price of

anything an age where parody can be

turned into a real

asset dogecoin is worth 50 billion

dollars because

people believe it is worth 50 billion

dollars

you know what they said about the power

of what you believe in perhaps this was

it

it's the same in the case of bitcoin the

fundamental reason

it has value is because people agree it

has value

think of it like these shoes with human

blood they're worth

one thousand dollars why because it's

manufacturer thought

someone would pay one thousand dollars

for such shoes

who by the way was absolutely right

because all of these shoes have been

sold out

what does this tell you that a vast

majority of people investing in

cryptocurrency are just responding to

the craze around it

they're giving it a shot what about

governments

these countries recognize cryptocurrency

the uk is working on something called

brit coin russia does not recognize

cryptocurrency

china cracked down on it but then it

shifted position

now beijing calls it alternative

investment

in india cryptocurrency is not legal

tender but there are people who invest

in it

because people around them do it the

bottom line is this

the future of currency is digital there

is no doubt about it

but when you invest you must know that

you're not just investing you're also

gambling

and if you're ready to gamble you must

also be prepared to win or lose.

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