I hope this is helpful to all newbies on crypto like me 😉
So I learnt Cryptocurrency movement is beyond a Social or Financial Haven but was on course to trigger even a Political Revolution.
If there is any sector or innovation after the internet that will give power back to the people, it is CRYPTOCURRENCY AND THE BLOCKCHAIN. Getting more convinced that there was more to explore...😍
A lot of people still do not understand the new revolution Bitcoin has brought to the world of finance and technology for the first time in history; value can be transferred from one person to another without the need of a government or third party. It is AMAZING!
To understand Cryptocurrency, you need to understand the in-depth knowledge and evolution of money and how it was used in years past. The Internet has provided a whole new platform for the
evolution of Money...
All we need to do is to apply our brain. Lets move🏃🏻♀️🏃🏻♀️
The 21st century gave rise to disruptive forms of currency; Mobile payments, electronic money, and virtual currency.
Cryptocurrencies could be classified as virtual or digital currency but not all digital or virtual currency are cryptocurrencies.
So you’ve been hearing of Crypto and seeing cash tags like $BTC $Eth etc. and you’re lost because everything seems like shorthand to you. 😂😂🤪💪✌️
Cryptocurrency is a form a “DIGITAL MONEY”. Now lets say you have N20,000 cash and you deposited it in the bank, your money is now in your account and its only represented by numbers.
You can still pay for goods at the Supermarket, pay for your Uber either through transfer or debit card with those numbers, now that figure you see when you open your bank App is digital money.
However, what sets cryptocurrencies apart is the technology behind them.
I know you don’t care about technology, only how much is left in your balance but it’s important to know how this technology benefits the society.
Cryptocurrencies rely on a technology called blockchain, which is decentralized (meaning no single entity is in charge of it).
The first ever cryptocurrency was Bitcoin! Until 2011 when Altcoins were created. Now we have over 2,000 Altcoins created.
Simply put, any coin that is not #bitcoin is an altcoin.
Now why Cryptocurrency, what are the benefits, what sets it apart from your traditional money? I’ll share few I learnt.
1.Reduces corruption: Crypto tends to distribute power among every member rather than one single entity i.e. Bank.
2 Eliminates excessive Money Printing:
Central banks have the ability to simply print money at anytime but printing more money to pay Govt debts is like putting a bandage on a broken leg. It rarely solve the problem, it only increases the money in circulation, causes inflation and devalues the currency.
Now you may wonder, if there is more money in circulation, isn’t that a good thing?
Now if you have 50 note for an Apple and you buy 1 and another 50 note is given to you for another, you go to the Store to buy again, and the shop owner has just 10 Apples, you’ve increased the demand for the Apples. In order not to sell it all out, she’ll increase the Price to 70, if more people like you come, she’ll increase the price again to 100.
Now you’re back to square one, you have more notes of your currency but can no longer afford an Apple.
That’s why some countries are rich in “Millions” but 1 million in some countries is not up to $2,500 because the Government thought it is wise to keep printing money.
3 Crypto gives you Control over your money: With traditional cash, you’re basically giving away all your control to central banks and the government. At any point, your government is able to simply freeze your bank account and deny your access to your funds and there’s literally nothing you can do. With cryptocurrencies, you and only you can access your funds.
Your wallet has a key that only you should be able to access. No bank or government can freeze your crypto assets.
4 Transparency: Blockchain is a great technology for storing financial records or any other data where an audit trail is required because every transaction is tracked and permanently recorded on a public ledger.
Most cryptocurrencies have a limited set amount of coins available...
When all those coins are in circulation, a central entity or the company behind the blockchain has no easy way to simply create more coins or add on to its supply. So you’re simply buying what someone else sold. That way it stays valuable.
See you next time 🤗I hope you learn something.