Why Cryptocurrency Is So Much More Than The Price Of Bitcoin
It was January 2009, the world economy was in a tailspin, unemployment was on the rise, banks were hording cash and politicians were touting ‘their elixir’ to solve these problems. Meanwhile, us working class stiffs, wondered if we will ever be able to recover from the fiscal mess the ‘rulers of the universe’ got us into. The rise in foreclosures was a bain on our homes equity, and the stock markets epic freefall, a threat to our retirement. Finding positive news in the financial world then, was like locating a six-legged peacock spider in the Poconos in January. Not happening!
But, “every new beginning comes from some other beginnings end”. So, perhaps that end was the trust we placed in the monetary system, as we knew it. And the new beginning will be the impact Cryptocurrencies will have from that day forward.
January 12th, 2009 marks the date when the first decentralized peer-to-peer digital payment transaction took place when “Satoshi Nakamoto” sent Hal Finney, 10 bitcoin. It was then that the cork popped, and digital currency was born!
Satoshi Nakamoto may be a real user, he/she may not be, the fact that he/she can remain anonymous is part of the attraction to using Bitcoin. Each transaction, each bitcoin wallet where tokens reside, are completely anonymous. Transactions to and from those wallets however, can be monitored by anyone at anytime at this address. If you want to set up an alert to see when transactions over $2.5 Million happen go here.
What is Bitcoin anyway.
A Bitcoin token is actually a snippet of computer code used to represent a measure of digital ownership. Each Token has a value figured by the total Bitcoin market capitalization, currently at $70,336,480,042 divided by the total number of tokens in circulation, which as of today, are 17,399,788 Tokens. Bitcoin Tokens trade 24/7/365 and the price fluctuation is what drives the loins share of interest in Bitcoin. But, it is sooo not the price of Bitcoin we should focus on, what is proving to have the greatest impact the world over, is the Bitcoin Protocol.
The Bitcoin Protocol,
and the Bitcoin Token are analogous in some respects, but have wholly different functions. Where the token is a measure of value, The Protocol is a network of digital distribution methods called ledgers which are controlled by no-one, but available to be monitored by everyone. Yes, this means no government, no cabal, no one person possesses the ability to manipulate the supply of tokens, nor the ability to upset the protocol. It’s a perfect hedge to the fungible central money supply we have today in the US of A.
A Perfect Fortress:
A network of computers across the globe are the facilitators of bitcoin transactions. For the facilitation of these transactions, computers, or wallets which are a 26 character key, are rewarded with Bitcoin Tokens. These “transaction facilitators” are commonly referred to as miners. Miners are both humans and computers. Humans deploy the Bitcoin Protocol by using computer (Mining) programs to verify transactions, and for the work performed are rewarded Bitcoin Tokens.
What’s it take to be a miner of the human kind?
An open mind, a little mining equipment, an internet connection, and the willingness to learn minimal programming to put it all together. But, thankfully the latter is where Youtube comes in.
With the price of Bitcoin tokens trading nearly 77% off its high, the effects of this downturn have sent ripples through the Mining community. The drastic decline in the Bitcoin token price has made mining profitability near impossible when the Bitcoin reward is less than the cost of your equipment and on-going electrical costs. But, if you believe in the Bitcoin Protocol, and you believe Bitcoin has solidified its place as an acceptable currency like Amazon has, perhaps is it worth buying a few tokens and hanging on to them.
Silicon Valley’s Bitcoin Platform; Coinbase enables investors who want to “get in the cryptocurrency game”, to buy different tokens with little seed money. Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic are all available to the novice investor.
What are your thoughts on now, being a buying opportunity for cryptocurrencies?
Some great reads about the subject of Bitcoin:
Good Financial Cents-When is the right time to invest in Cryptocurrency, (or should you)?
Investorjunkie-Bitcoin Basics…What are Cryptocurrencies and Blockchains
Lazymanandmoney-5 top ways you can start earning an extra income using bitcoin
ModestMoney-Why Bitcoin is not a real currency.
Slick Photo, compliments of: