What They Aren't Telling You About Cryptocurrencies

Find out the story you didn't know about cryptocurrencies in this article! This talk will provide an overview of what cryptos are and aren't telling you, as well as detail how they're leveling the playing field for people in developing countries.

Are you interested in cryptocurrencies? If so, there's a lot of "information" out there on the subject, much of it presented as facts or groundbreaking information. In reality, things can be misleading and many ideas entirely false. This is why, in this article for GDAX Cryptocurrency Blog, you get an honest assessment of the pros and cons of cryptocurrency to prepare yourself before making a new investment decision.

How a cryptocurrency started

"A cryptocurrency is a digital or virtual currency that uses cryptography for security. A defining aspect of cryptocurrencies is their decentralized control: there is no central authority that regulates it." The first ever cryptocurrency came into existence around 2008 when Nick Szabo created the idea of what made up the modern day cryptocurrency. Satoshi Nakamoto then decided to actually put this out in the form of Bitcoin, which was released in 2009 by him.

The idea of Cryptocurrencies

Although there has been a lot of buzz about bitcoins, lucre, ether, and other cryptocurrencies such as blockchain technology, some people are still unfamiliar with what cryptocurrencies are and what can be done with them. Many new currencies have popped up over the past few years that use the application of blockchain in some way.

Cryptocurrencies, or digital currencies as they are often called, are becoming more popular. They have been praised for their innovation and community support from all over the world. Many people use them to make quick transactions online that would have taken days with wire transfers or online banking. However, cryptocurrencies haven't always been the most trustworthy. There have been cases of stolen cryptocurrencies and what they were worth at the time has sky-rocketed and crashed in a matter of minutes.

How does a Cryptocurrency work?

Cryptocurrencies have become a booming part of the world and touch many aspects of life but not often do people hear about how a cryptocurrency works. Cryptocurrencies are basically digital money that is held electronically. They can be used to purchase things online if they're going through an online retailer like Amazon or Overstock.com or if you happen to find an ATM that’s offering Bitcoin as the currency of choice.

Bitcoin explained

There has been a lot of hype around cryptocurrencies in recent years. They have become a popular topic of discussion across social media platforms such as Facebook and Twitter. For example, hashtags like #Bitcoin or #Cryptocurrency are used 17 million times on Twitter. Investors are avidly buying up the cryptocurrency market although only 0.3% of Americans own any type of cryptocurrency. Some who invest in Bitcoin feel it can be worn as jewelry and will change the world.

Why is there a rising demand for cryptocurrencies?

Cryptocurrencies have risen in popularity for a few reasons. The first is that there are no banks, governments, or financial institutions involved, which means less risk of financial harm from hacking and fraud. Cryptocurrencies have also seen an influx of investment in recent years, with some people thinking that the cryptocurrency market will far surpass the general stock market. Investors found out that many people were more likely to invest when they could buy cryptocurrencies as a gift card leading to an increase in demand.

Tricky expenses involved with cryptocurrency what to know before you get in

Cryptocurrency can excite investors but take note of how cost involved often linger in the back of their mind. As soon as you start buying cryptocurrency, you need to concern yourself with what is a reasonable monthly fee to spend on your purchase. Most traders buy the currency initially and then trade in it for other trading rates but that does not mean these expenses will not slow down any plans for long term growth. Many top currencies including Bitcoin must be bought through exchanges where commissions can be as high as six per cent.

Conclusions

cryptocurrency is a relatively new concept and as such, there isn't a lot of understanding about how it works. There are some very interesting conclusions that can be reached from this example.