What is Bitcoin?
In order to understand what mining is and how to mine, first you need to understand Bitcoin.
What is Bitcoin?
Bitcoin is the first truly digital currency that is completely decentralized. How does all of this work? Well, the answer for that can be long or short depending on your interest but what you should know is that Bitcoin is the first application that was built on a technology that will change how the world works. Therefore it will have a huge impact to our daily lives in the foreseeable future.
As first digital currency, it solves a crucial problem that has existed for a long time. It solves the issue of having to rely on a central authority to make payments for goods and services. The use case for this is that you don’t have to rely on anyone or any service while sending money over the internet. An important concept to understand is that cryptocurrency could potentially make companies like Visa, MasterCard and PayPal obsolete. There is also a sentiment that it can replace everyday currencies like the American Dollar or Euro. However, it isn’t out of the question that it could take a significant amount of time to happen.
What are Altcoins?
Altcoin is a term used to describe alternative cryptocurrencies besides Bitcoin. One thing to know is that they specialize in other use cases. For instance, Zcash is more privacy focused than Bitcoin. Tezos are a variation using a governance model that is based on stake voting. On the other hand, Bitcoin is perceived as Digital Gold at the moment which makes it very viable asset where the supply is very limited and demand is only growing. You might hear some people say that you’ve missed your opportunity with Bitcoin, but we have reason to believe that Bitcoin is still in it’s early stages and will bring a huge ROI to it’s early adopters. It’s not too late!
So.. what is blockchain?
Blockchain is the fundamental technology that was created by the inventors of Bitcoin. It creates a secure transaction without the need of a central authority. However, the use case for blockchain is not only digital currencies. All kinds of decentralized applications can be developed on blockchain.
What are smart contracts?
A smart contract is a computer protocol implemented on the blockchain which enforces rules that are written in the contract itself. They are created to enforce, facilitate, and verify the negotiation or fulfillment of a contract. Smart contract technology from the Ethereum blockchain has helped many developers and teams to launch their own tokens. Ethereum was able to raise millions for their ideas and projects through selling the tokens to interested investors.
So.. what’s the point?
The big idea is that these technologies will eventually have the same the scale of impact on society as the internet did. The internet liberated free flow of information. Any data can be copied and can be shared across the world in an instant. What blockchain technology does is remove all the obstacles around value or fiat money and liberating the flow of value on blockchain. Not only value, but decentralized applications can also be created on this technology. This is ground-breaking stuff.
Although these technologies are still in their early stages, the development that has been happening on the scene is very ambitious and there are a lot of investors interested in it.
It’s not too late to join the cryptocurrency movement, you can still be an early adopter if you act soon.
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