Anyone who already understands what a cryptocurrency is must be taking advantage of every penny to buy Bitcoin or other crypto assets.Those who don’t understand must be at least curious to know how it works.There is only talk of Bitcoin and cryptocurrencies, and it is not for less.
Launched in 2009, the technology behind Bitcoin has the potential to revolutionize the world’s business relationships.Some say the world will not be the same in the next 5 years — all because of blockchain.
But what is blockchain?What is Cryptocurrency?How to buy Bitcoins?If you have any of these questions, check out in this article the answers we have prepared for you to understand the subject of the moment.Good reading!
What is a cryptocurrency?
It all started in 2009, when one Satoshi Nakamoto published the source code (known as a whitepaper) of the completed Bitcoin project.Who this person is, nobody knows.But his name will forever be remembered in the history of the money revolution.
Cryptography
One of the most notable features of this innovation is the sophistication of encryption.This is the second most important aspect of crypto assets: the security of the codes that protect value transactions.
Unlike regular money, overseen by government agencies and financial institutions, Bitcoin is free from these intermediaries.With it, commercial relations take place through a peer-to-peer protocol, protected by virtually inviolable codes.
This means that if someone transfers Bitcoin to any address on the network, there is no single intermediary agent controlling the operation.
Solution
Therefore, despite our emphasis on cryptocurrencies, it is better to understand this technology as solutions to general problems in the economy and society.In the case of Bitcoin, we have a solution for centralizing the control of money.
The Bitcoin system works over the internet, through a protocol that connects two network addresses.Any transaction must be confirmed by each computer connected to the system.This ensures, for example, that no one “invents” money out of thin air, as the central banks of centralizing governments do.
But, among the more than 2000 solutions like Bitcoin, we can find others for various problems.Smart contracts, distribution logistics and dynamic platforms for other cryptocurrencies are some interesting examples.
Blockchain
Now, if cryptography is the second most relevant aspect of crypto assets, blockchain is certainly the heart of this engineering.
Blockchain is like a public ledger of all Bitcoin transactions (or the asset relationships in question).Each block carries with it an access key to the previous block, forming a “chain of blocks” (hence the name, blockchain) that “tells the story” of all transactions.
These blocks are built as the system operators (miners) solve problems that require very high computational power.The solution to the problem is confirmed by the network, which ensures that all computers are saying the same thing.Thus, if someone tries to defraud a block by adding or removing information, the system rejects that block and the operation is not confirmed.
Why use cryptocurrency?
There are many reasons to buy Bitcoin or other cryptocurrencies.And all are directly or indirectly related to the potential of blockchain.Check out 3 fundamental reasons!
Safety
The Bitcoin system is very secure.It’s really safe!Consider for a moment the fact that the entire grid already consumes more electricity than Switzerland, and you’ll get an idea of how safe it is.
If you understand how the system works, then it is clear that defrauding the Bitcoin blockchain costs infinitely more than any value diversion arising from fraud.But that doesn’t mean users are immune to criminals.
Although it is practically impossible to spoof information from an address on the network, the user is still responsible for his/her wallet (private-key).So choose well how to keep yours to protect your Bitcoins.
Ease
Have you ever thought about transferring money from Brazil to Hong Kong in seconds, without having to pay IOF, declare to the Federal Revenue, or face bureaucratic processes?
That’s how it is with cryptocurrencies: select the address you want to transfer the amount to, set a “tip” for the miner if you want, and… that’s it!
Everything is even easier when you use QR-code.Just aim your smartphone camera at the address code and transfer your cryptocurrencies.
Market valuation
If you had bought Bitcoins in 2010, when 2 pizzas were worth 10,000 Bitcoins, maybe today you would have a few million dollars in your account.
We are talking about the highest appreciation of an asset in the entire history of the financial market.There were more than 650,000% appreciation until the historic high of December 2017.
Therefore, it is no wonder that large companies such as Microsoft, IBM, Google, Facebook and other giants are embracing the technology.In fact, this illustrious presence, especially that of Facebook with its new currency (Libra), promises to further strengthen the value of blockchain and cryptoassets.
What are the main cryptocurrencies?
You have already met Bitcoin and the solution it offers.There are still hundreds of other solutions, and some have already amassed a few billion dollars in market capital.Get to know the main altcoins, that is, alternatives to Bitcoin, market leaders.
Ethereum
Considered by many fans to be the evolution of the blockchain (who knew, evolution has already evolved!), Ethereum does a little more than Bitcoin.In addition to the construction of a block being much faster, those who have ethers can create value tokens, as if they were other cryptocurrencies.Ethereum is also the benchmark for smart contracts.
ripple
Ripple comes to try to put banks in the game.Its platform allows transactions of large remittances to be made safely and quickly.This provides liquidity to banks through the platform currency (XRP).
Litecoin
If Bitcoin were gold, Litecoin would be silver.Born as a solution to problems of Bitcoin itself, Litecoin has the proposal to speed up transactions on the network.Thus, in a litecoin transaction, users would have to wait only two and a half minutes for a block confirmation, as opposed to 10 minutes for Bitcoin.
How to invest and where to buy Bitcoins?
All you need to start trading cryptocurrencies is an account on an exchange, that is, an online trading platform.Then, just deposit the amount you want to invest and buy your Bitcoins and altcoins.
We created this content for you who want to be part of the crypto universe and it can be your gateway to this new world.Still not familiar with the Ripio platform?Access thewebsiteto register and start being part of the new digital economy.