CryptoCurrency, Ever Wondered How It All Works Underneath The Hood? Let's Make It Easy.

in #bitcoin7 years ago

For this simplified explanation ill use bitcoin for reference. Yes there are thousands of different cryptocurrencies and lots of them work differently but its all based off this idea.

bitcoin.jpg

As of today while I'm typing here the bitcoin is worth 2495.53 USD. Ever wonder why? It's simple - There's a high demand for them. There are only a certain amount of bitcoin ever made, it's not all farmed out of their blocks yet - but the ones we have are highly wanted and that's what gives bitcoin it's value. Now how does the farming of bitcoin work? Let me put it in Layman's terms:
Bitcoin is farmed from blocks using cryptography, so there's a mathematical encryption between you and the bitcoin - so if you can decrypt the code you get the bitcoin, simple right? Not so much. The decrypting part has become so hard that people have to buy huge bulky special CPU's and computers to mine in a pool and put their hash power together to be able to decrypt these codes, and then after that the bitcoin is divided into the pool based on the amount of work the computer did - so it has gotten a lot harder and more expensive to farm.
167577081.jpg

I really think bitcoin is a wonderful thing. Cryptocurrencies are the future i believe, a lot of people theorize that bitcoin will die out and whatever takes it place will rule the global and cryptocurrency. I personally have recently discovered and invested in polybius, you can check it out at https://www.polybius.io/. Yes, it is a shot in the dark but if its successful it's a huge payday. Cryptocurrency will erase the middle man and this long corrupt grip that banks have over our money, it's instant to send globally and costs almost nothing. the system is virtually impenetrable due to the ledger existing on every single computer currently connected to the blockchain and there's just so much more to learn from this wonderful creation. If you haven't heard of or just have not bothered to look into bitcoin or other cryptocurrency you need to check into it or at least read up more.

Thanks a lot for reading guys and see you again soon.

Sort:  

Just taking this opportunity to say "THANK YOU FOR FOLLOWING ME"