The jargon free online resource for Cryptocurrency
Hints, tips - All you need to know, without the head spinning technical terms
Welcome to the brave new world of digital money
Cryptocurrency – A 30 Second Overview
Cryptocurrency is a currency that exists completely online – of which there are numerous. Digital currencies are all recorded through ledger accounts and transactions are made between peers, free from the need of institutions such as banks. Each cryptocurrency system has verification and encryption all built in.
In the simplest sense, this is what cryptocurrency is.
What is mining?
One of the most commonly pondered question in relation to cryptocurrency is in relation to ‘mining’. Much online information about mining is incredibly complex – so here’s a simple explanation:
Cryptocurrency is a digital currency, created from numbers alone. Each of these currencies effectively ‘prints’ money at set times, with coins released at these intervals in batches, which are approximately every 8 minutes with one-coins new block-chain it is 1 minute. The batches of coins are known as blocks, with each block having a set amount of currency. Every set number of years (which differs, as according to the cryptocurrency in question), the amount of coins halve.
Mining is the process of the blocks being released (the coins aren’t automatically processed, they must be released and ‘unlocked’). Effectively the blocks are otherwise locked with mathematical equations which need ‘solving’ before release.
This is mining in a nutshell.
This is why the world has been shaken by Cryptocurrency...
And why so many people are choosing to be educated in it.
What you likely really want to know is why so many people are investing in cryptocurrency. The answer to this question lies in the fact that cryptocurrency is just like any other – it has a value that’s determined by a market. Just as the US dollar or UK pound can rise and fall, so too can any cryptocurrency.
There are many compelling benefits for using and trading cryptocurrency, here’s a brief overview of each:
1. Cryptocurrency is decentralized
Unlike any traditional currency, Cryptocurrency is decentralised, which means that it’s the holder of the money who controls it – not banks, not any other institution.
2. Cryptocurrency provides bank-less regions with an alternative
More than 40% of the world’s population live in regions without banks and financial institutions – ultimately, this means that these regions are unable to undertake simple tasks, such as online payments. Cryptocurrency opens up a new world to these areas – and is predicted to lead to growth and prosperity in previously impoverished regions.
3. Significant payments can be made free from delay
These include payments such as those made for real estate, where traditional money would have to pass via many holders to reach the end user – including solicitors and banks. These payments also benefit from being fee free.
4. You own your currency, and you control it
Banks and alternative transaction websites such as PayPal always maintain the ability to freeze your assets for any number of reasons (we need only look to such account’s terms and conditions to see the extent of caveats). Cryptocurrency, in comparison, is completely controlled by you, with no risk at all of a company removing or withholding your balance.
5. Cryptocurrency has experienced incredible rises in value since its conception
You’re probably here due to one reason – you’ve read, seen and heard all about the amazing rises in value experienced by cryptocurrencies around the world. From 2007 onwards, financial markets around the world were shook by a crisis that led to worldwide job losses, governmental deficits and business bankruptcies, all whilst cryptocurrencies only rose in the value. Today, these currencies are still experiencing steady growth – with many foreseeing this as the true future of payments.
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