If you haven’t heard of cryptocurrency (or thought about investing), then you’re already behind! The first cryptocurrency was created in 2008 by Satoshi Nakamoto. He first bought the domain name Bitcoin.org in August. He then published a report in October discussing the functionality and logistics behind his newfound idea called “Bitcoin” that was a part of the blockchain network. Beginning to “mine” in 2009, Nakamoto’s idea took off and has come a long way since 2008. Starting at literally $0.00, 1 Bitcoin is now worth $43,864.30 and is still growing. So, if you bought 1 Bitcoin when it cost $0.09 (United States Dollars) in 2010, which was the first “major” increase, it would now be worth $43K today, and you didn’t even spend a dime.
Over the years other coins (called altcoins) have been created and the market is exponentially growing. If you’re lost, keep reading. I’ll explain the basic things you need to know as an introductory cryptocurrency researcher.
- Web 3.0
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Many of us were around when the first form of the Internet came out in the 1990s and started improving in the early 2000s. This was the beginning of the World Wide Web and it can be referred to as Web 1.0. Obviously, there was a huge jump after the 2000s, and the internet grew exponentially in the 2010s until now. This era can be referred to as Web 2.0. Well, where do we go from here?
We are getting so technology advanced with our smartphones, social networking, and internet applications that Web 2.0 won’t cut it anymore. That’s where Web 3.0 comes in. Web 3.0 is going to be the next form of the Internet that focuses on decentralization, artificial intelligence, better utilities, and extreme connectivity. So why is this more advanced version of the Internet relevant to Cryptocurrency? Well, many cryptocurrency projects will rely and excel on the Web 3.0 platform since they utilize a specific blockchain technology only available on this futuristic platform.
- Decentralized
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In layman’s terms, the cryptocurrency world refers to decentralized as “run by the community,” whereas centralized is run by an entity, such as the government or a bank. In this new Web 3.0 space, control of the platform will be in the hands of the users and will allow people to not have to put all their trust in the centralized governing entities, giving them less power overall.
For example, when a popular website site such as Facebook gets hacked, a lot of people’s information is stolen or sold, because Web 2.0 is a centralized system; we put our trust in their hands. People who are in the crypto-sphere strive to work together rather than compete with one another, serving a perfect time for implementing a decentralized network.
- blockchain
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Now that you know what a decentralized market in Web 3.0 is, you can understand the blockchain technology crypto projects utilize. Because this platform is decentralized, it is important that all the cryptocurrency that is created, is accounted for. It’s not like a bank is tracking everyone’s transactions. Since people are making incredible amounts of money from these projects, it is vital that the verification and visibility of these transactions are traceable, which is what the blockchain does.
It is also referred to as the “Distributed Ledger Technology” (DLT), which allows anyone to see your digital assets on certain websites. This creates more transparency among online users, allows for the decentralized market to continue, and helps avoid scams and risks.
- mining
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You’re probably wondering how cryptocurrency coins are created. Well, it’s not like printing physical dollars at the US Bureau of Engraving and Printing. Mining is the process of creating cryptocurrency, like Bitcoins. Imagine a room full of computers and specific hardware devices that are constantly working to solve complex computational math problems.
The first hardware device to solve the problem will receive a “block” of Bitcoin that can now be used to sell to other users. Obviously this is a costly job since you’re utilizing so much electricity, but it can make you a lot of money if you know what you’re doing.
- scams
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Although there are so many ways to “get rich” from participating in cryptocurrency, it does take a lot of work and research. There are also many scams out there that even the most experienced people get trapped into.
For example, there are a lot of fake websites or apps that pose as a certain cryptocurrency but really they are waiting to take your money and disappear. If you do choose to explore the crypto-world, be safe and do plenty of research beforehand!
If I haven’t lost you yet and you’re still interested in learning more about our future currency, take a look at this YouTube video on “How to Invest in Crypto for Beginners” and the Beginner’s Guide to Crypto and get researching!
Ethereum, or some other Cryptocurrency is going to be the global standard of payment. It’ll be of greater value than national fiat.
Hendrith Vanlon Smith Jr