Crypto basics for those wanting to know more and have a chance of making money on the fastest growing platform in town
Do you need a Bitcoin or an Alt coin
Their is but one Bitcoin and all the rest of the nine thousand or more players are Altcoins.
In common is the platform Blockchain an unbreakable system that allows secure transactions across a broad range of activities.
The blockchain was popularized by a person (or group of people) using the name Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin, based on work by Stuart Haber, W. Scott Stornetta, and Dave Bayer. The identity of Satoshi Nakamoto remains unknown to date.Wikipedia
Then Bitcoin was formed to use the blockchain and develop a store of value and to maintain its original format using independant assistants.
These assistance are called MINERS and their job is to do all the processing functions behind the scenes. For doing this they earn new Bitcoins in payment for their services.
Mining is not for the small investor, in fact some rigs ( a heap of computers working together) have a billion dollar investment in capital to perform the tasks.
Mining takes a lot of power to run these massive rooms and has come under a lot of attention in recent times. However the miners have reacted and moved to locations with abundant and cheap power generated by non renewable resources.
In fact Those using Hydro in China were banned as China took a stance against the US monopoly called Bitcoin. These guys quickly packed up and moved to locations across the world.
One interesting Miner is located in el Salvador where power is generated by Volcanic resources. Furthermore el Salvador has adopted Bitcoin as a national currency.
A bitcoin is broken down into small tradeable pieces
As I type this post Bitcoin is valued at about us$62,000 up from a year end 2020 of $14000 although January saw it go to us$40,000. A nice increase in anyone’s money
First of all you don’t actually receive a Bitcoin gold coin nor even a bit of paper because it is a virtual presence on a trading exchange somewhere. This news really disappointed me because I wanted to wear one on a gold chain around my neck to show others what you can do.
Next a single coin is broken down into 100 million satoshis The satoshi to bitcoin ratio is 100 million satoshis to one bitcoin.
Therefore you can own a very small part of a Bitcoin for just a few cents
What is Fiat and how does it relate to Bitcoin
No we are not talking cars here but a term that represents your countries local currency, US dollar, UK Pound, Euro Dollar, Yen etc. Fiat is a latin word meaning store of value as determined by authority.
The US Dollar is Broken down into cents as are all currencies broken into small parts so the Bitcoin is no different.
What do Altcoins do that is different
The premium Altcoins all provide additional services over block chain. We will go over a couple of these because their presence is nearly as strong as Bitcoin.
However like Bitcoin many try and represent a store of value and gather followers that keep the price action going.
The best known of these is Dodge Coin which flops around in value. It was set up to show that anyone could build a coin and obtain value even though it is basically worthless.
The crypto market is an investing platform of virtual products that is often run purely on emotion. This is not unlike the Stock Exchanges that have real products but still have market volatility.
The wise investor trades on value transactions that have a large degree of success potential. However shares have disappeared never to reappear and losing all investor money.
Can you really value an Altcoin or just take a guess.
One important factor is supply and demand over a price factor.
Using bitcoin as an example;
Maximum supply of Bitcoin is 21 million. This figure is etched into the rules of the platform and can not be changed. We Know that the founders own 1.5 million and believe 2 million have been lost thus reducing supply to about 17 million.
Then we have those that are holding for long term gains (Called Hodlers) so we really have only about 1.5 million left to trade.
The current market cap is around 1.1 Trillion us dollars.
As an example Apple is worth over 2 T or double that of Bitcoin and even Amazon worth nearly 2T
Furthermore the shares in these companies can rise over time expanding the value.
Then we look at Dodge coins that have unlimited supply with 131 billion in the market giving a cap of about 29 billion US Dollars.
Therefore the supply has no ceiling and it is purely a demand at a price which is driven by speculation.
Pretty dodgy stuff.
What are the top 10 Altcoins
This may change on a daily basis and the valuation method however this is representative of them,
|Etherium||The best smart contract platform|
|Cardano||A financial operating system using proof of stake|
|Litecoin||A global payment network|
|Polcadot||Interoperability between chains|
|Tether||A smoothe bitcoin cash|
|Solano||Similar to Cardano but faster|
|Uniswap||Open source software to help compete in the Market|
|Binance||A payment method for fees|
|Bitcoin Cash||A more scalable BitCoin but unrelated|
|Chainlink||Connecting different providers through the Bitcoin|
What can take over Bitcoin in value
The current Crypto market is dominated by Bitcoin at around 50% of the total market value so it will be hard if not impossible to move to one side. Thus it could represent a great future value.
I have written a lot more on this at Cryptobasic.net for the latest info.
I made a spelling mistake on this in that cripto is a human gene whereas Crypto is a currency.
However many are making the same mistake so I thought I would try this site as well
Crypto trading is risky however it is a great game that has massive rewards for those that win the war.
Crypto basics for those wanting to know more
This is not to be considered financial advices