The bitcoin domination over all other digital currencies has never been more eminent than today. There are some predictions though that the market share of bitcoin will drop significantly in the next few years even though these predictions are just suggestions for now. Cryptocurrencies are yet to play a very important role in the coming future of money.
One of them, in particular, has the brightest future of all and that would be the best digital asset of today, bitcoin. This new digital cryptocurrency market is far more complex than it seems. There are countless studies that are dealing with the whole cryptocurrency industry and they examine the future and role of bitcoin in particular. They are also dealing with the evolution of the broader cryptocurrency market.
The one conclusion they made so far is that it is still changing and maturing. This will give them a valuable insight on how this market might change in the future and more importantly, what those change will mean for the current economic systems that we still use. One of the biggest challenges that appeared with cryptocurrency is unauthorized copying and how to prevent it.
The mechanisms of prevention
In order to find the best solution, there are two mechanisms that protect cryptocurrencies from unauthorized copying. The first one is a public record where every transaction made is recorded and stored. There are numerous copies stored that are used for automatic comparison and updates in order to prevent double spending. Double spending is basically when the same bitcoin is used to buy two different things, which is nothing more than a scam.
The second mechanism is the protective cryptography that keeps the ledger itself protected. Every transaction is collected, as well as all the updates, and added to the existing ledger. Each ledger is encrypted and frozen and the next version includes the encrypted copy of the previous one. You would have to be a computer mage in order to generate a number that would game the system.
These new ledger versions ,also known as blocks, are extremely hard to copy. And that is what makes sure that the system is always secure and protected. There is literally no way how you could copy the ledger. There could be a way for super hackers but since it would take a tremendous effort to do it. The hackers are choosing the other options which are way easier.
So, in a way, the cryptography is by itself a way of protection. It’s making the whole growth of cryptocurrency industry possible otherwise, there would be a mess all over the place and anyone with a bit of computer knowledge could start making incredible amounts of money. It could plunge the world into economic chaos. To prevent this chaos from ever taking place, these mechanisms were devised to keep everything under control. The governments are not in charge of this digital wealth as there’s no way how to control it and prevail.
As cryptocurrency is slowly creeping up to the modern financial system, it’s important to understand just how important cryptocurrency is and how it can affect the financial institutions and the market. The fact of the matter is that once bitcoin was introduced. Nobody cared and it did not have a bright future.
With huge marketing and a slow community acceptance, it crawled its way to the mainstream where it began expanding into the goliath of the online currency it is today. The bitcoin alone is an online trading platform that trades and exchanges millions of dollars within one year.
So how does Bitcoin work?
Bitcoin is an online trading currency that is awarded to the miner after a set of blockchains is mined. Over the years the mining has become increasingly harder. So that the coins would gain in value as the market dictates its need. With such a huge interest from the public, it was slowly becoming important to have some tools and understanding of the programs that are being used by newcomers to startup their bitcoin venture.
The following programs are something that you should get introduced to if you are planning to play with bitcoins in the near future.
– Programs for mining
The BTC miner is the open source mining program that will get you started on your journey to mining your first bitcoin online. It can operate both on the Windows platform and the Linux. It has a ready for use bitstream that makes it an excellent choice to mine bitcoins with more than one rig. Its interface is amazingly easy to use and for further explanation on how you should use this program. To help you mine your coins, you should visit their official website.
This is a python GPU based mining program which lets you mine bitcoins through the OpenCL framework. It’s an easy to use program with AMD graphics cards. That are the 4xxx and above ant with Nvidia graphics cards that are 8xxx and above. It’s also a good program for mining with more than one rig and for additional research and experimentation when it comes to mining. For further assistance on how to use this program visit their official website.
As you can probably imagine when bitcoin became popular many wallet services started offering their packages to attract more users. We recommend you check out these wallets and choose one that best suits you and your needs
– Ledger Nano S is a secure wallet for the bitcoin currency and some others. And it can be used on all platforms at the same time.
– Electrum is another simple bitcoin wallet that can also work on Linux windows and on the mac. The interface is easy to use and can be mastered by everyone.
– Mycelium is at this moment the most popular wallet for the android users. Keep in mind that we don’t advise you keep all your coins on your phone.
– Bread wallet, as mentioned above. Is the best wallet for the android system and here we have the most popular for the IOS.
So, you decided that you want to learn what all the hype about bitcoin, cryptocurrency, and blockchains is about. The thing is this is nothing new, the technology and the concept of these things has been present for quite some time, but it has not become mainstream until recent years. Let’s get into the description of each. And every one of these terms and what they stand for and how they can be used in our everyday lives.
First, let’s explain what the blockchain is. A blockchain is a ledger that is decentralized. Which means that it’s the same as the banking system but without the bank as the mediator. When you want to trade something for another thing you need two things the money for the transaction and the item that is being bought for the money. If your money is on your credit card your bank receives a request to process the money transaction. And then it removes that amount from your card and puts it on the receiver’s bank account.
The blockchain is basically doing the same thing but without taking its cut, and without sharing any private information. For the blockchain to be productive all it needs is a network of computers. That will update all the ledgers at the same time with their computing power. This way only the sender and receiver know who is trading due to the change of the keys to open their ledgers. For the transaction, and the others just know that a transaction happened.
Next is the cryptocurrency, this is basically what a dollar is to the world. A form of monetary value transferred on a piece of paper, which is valid for the trading of goods and services in every aspect of our lives. Cryptocurrency is also a monetary value but not transferred to paper. It’s, in fact, a value in the online world where it can be traded for goods and services. Its protection is guaranteed by the cryptography and its value depends on the market. Which can change on any given day.
Last but not least is the bitcoin. The famous bitcoin is the first and the most well-known form of cryptocurrency that is at the same time the most valued. At certain points in time, a bitcoin was worth less than one dollar and today its worth several thousand dollars.
Bitcoin in a sense is the future of cryptocurrency and online financial transactions. It alone has paved the way for future coins and revolutionized the way we world can earn and trade with a new currency that is completely devout from the centralized banking system.
To understand how bitcoin works an in-depth analysis should be read as the intricate dealings. And inner working of the bitcoin is changing with every new generation of additional implementations. For now, bitcoin remains the largest and most mined coin on the cryptocurrency market.
When it comes to cryptocurrency the industry is at its infant age. Yet it has grown so fast and so large in this short time that there are complete industries focusing on the process of making money on cryptocurrency. In a sense, the old banking system is kind of failing the world, and with millennials looking at alternative methods in almost every industry, while still staying on the popular trendy topics, the cryptocurrency money making scheme is at its highest in its history. The question that everyone has on their mind is how exactly can you make money off cryptocurrency?
There are several answers as there are several methods, but essentially the question boils down to if you want to invest a lot of money and time or just set up a system that will earn you money on the go.
The fact of the matter is that once cryptocurrency became viable, everyone wanted to join the party and earn some money on it. However, the cryptocurrency methods of earning money were not boiled down to one or two methods but in fact several of them.
As the cryptocurrency known as bitcoin became integrated into several industries it slowly gained purchasing power in the real world. No longer would you have to pay for something with real cash if you can pay with virtual money, and what better way to earn that money than to make it yourself.
First thing is first when it comes to making money with cryptocurrency there are these methods:
– Mining the coins
– Buying and selling them on the market
With that out of the way, we can also mention that there are several ways to earn coins or fraction of coins if you watch certain ads that will reward you with coins and you can also sell goods for coins and then make a profit when the coins value goes up.
Mining the cryptocurrency
Mining is performed with a powerful PC as the graphics card performs tons of calculations during a given time, you are then rewarded for your performed calculations with a coin or a fraction of it. Once you gain enough block chains the mining becomes harder. Which means that in the future it will take you longer to mine the same amount as it did before. This is the most well-known form of making cryptocurrency money and it works.
There is an initial investment as the gear to mine can be expensive especially if you want to get more computers at once, and the trick is that it can take you from one day to anywhere up to a year to make your money back. It all depends on the market and if the coin will grow and how fast it will grow.
The Buying and selling of the cryptocurrency
This is a form of stock market trading. You buy at one point in time and sell it when the price rises in the future. This method does not require a huge initial investment and can return little profits in an instant or it can also cost you money if the value of the coin falls down.
Cryptocurrency is a new form of financial trading that has recently become very popular across the whole world. The fact of the matter is that with a decreasing interest in the old-style banking system, the new cryptocurrency is a form of decentralized banking system where everyone that is involved has the same responsibility and can affect the market in the same way.
The additional reason why cryptocurrency was widely accepted all across the world is that trading in virtual coins did not pose any additional costs or fees. In short if you wanted to buy something you needed to have a few coins and a wallet where you store those coins (think of a safe in the bank and understand that every user has their wallet for safe storage of their coins), and then when you used your wallet to buy something you would not be charged additional fees to process that trade.
The neat thing about cryptocurrency is that you can even set how much you want to pay your fees, from the lowest satoshi amount (it’s a part of a coin) to a full-blown coin if you want it done as soon as possible. Every part of the cryptocurrency market is connected and the computing power of holding such a network in high functionality boils down to the computing power of the collective base of all the users in it. In short, people contribute far more to the collective value than banks do to any individual.
This has had a large social and behavior change in many sectors and industries. As online currency offers unique ways of approaching trades and many industries and their markets. The people that are at this moment working in the cryptocurrency market as miners are way above the 5 million number, and it will only continue to increase. Also, about 2000 people are working full time as employees of certain firms in the cryptocurrency market, and that is just the reported workers, lest we forget that there are many more rogue groups that don’t want to share their personal information and employment status.
What is the value of the cryptocurrency coins?
The value of the coins is tied to their purchasing power. For example, many industries have decided to accept the coins as valid money equivalents when it comes to trading good and services for online coins.
So, the question is why own a cryptocurrency. Well it’s in a way safer than to own regular money. Its value can rise so your estimated value can increase, it provides better privacy. It has low or no fees on transactions and can be used all over the world.
What are some of the basics you will need?
First things Is first, setup a wallet for your coins. Then figure out if you want to buy coins. And trade with them to earn a profit or if you want to mine them. Picking a good wallet has never been easier as there are tons of quality services offering wallets for coin users. Here are our top favorites that you can check out:
Bitcoin Price IQ
Once you have a wallet set, and some coins in it you are officially part of the cryptocurrency family. All you need to do now is either generate more by mining, by trading. Or by selling services and goods for coins.
In today’s advanced age, where the computer can do anything, and everyone can do anything with a computer it’s imperative that we educate ourselves on how to protect our information and data. Even more so when it’s about our money. When it comes to cryptocurrencies they are money that is stored online and if the banks have vaults that protect the money within them, you need to get your own vaults that will protect your money. While cryptocurrency has its own protection that can’t be breached. As of yet even by a quantum computer, it still can’t protect against one thing.
Stupidity! Humans are the weakest link when it comes to protection of data and their belonging. If you leave something in one place it won’t move, but if you put a human around just to move it a bit by bit eventually. It will get lost and even he or she won’t know where she put it. So, to evade those kinds of scenarios you must learn how to protect your cryptocurrency, and there are several simple rules you can follow to protect your coins.
Make a backup
In fact, make several of them. Backups are not going to be cheap, but they will be a hell of a lot cheaper if you lose all your coins to a phishing site or to your stupidity. The fact of the matter is that everything in this world can be done. On our side without any mistakes and still mistakes will happen. Hard drives fail, USB sticks get lost. And most important of all mother nature can intervene. And when that happens you want to have a backup of your money on several places so that your data and valuables are safely tucked away.
Encrypt your data
As with any data, if it’s just left there for the taking. Somebody will come and take it, or at least check it out. Which will eventually leave you without your money? Encrypt important data such as your cryptocurrency and save yourself a headache in the future.
Get multiple wallets
Having one wallet is fine, but having more than one is better! If you entrust your wallet to another company be prepared that that company can go under the bridge in no time.
So, if you want again to save yourself from a bad situation make sure you have several wallets that can at least save your portion of the coins when one side goes under.
Stop using your phone for logins and transactions
The biggest weak link in every online transaction are our mobile phones. The computers have several ways that they can protect themselves or cut off potential thieves.
But our mobile phones are like lambs to the slaughter. Never trade or input any important passwords over your mobile phone.
Get a quality antivirus on your pc
Everything that is free is not worth it in the long run. Make sure you check out the reviews on several sites and get yourself a full yearly subscription on a quality antivirus.
When we first saw the cryptocurrency make its debut it was nothing special. In fact, it was such an insignificant happening in the financial world that most of the world ignored it. While some set out to mine the bitcoin for a promise of a better tomorrow, many did not even want to trade with it once they were offered. Slowly bitcoin clawed its way to the limelight and as stories grew how people traded hundreds of bitcoins for a pizza and other stories. People started to take notice of the bitcoin. As time progressed bitcoin slowly gained ground and even the financial world started to notice its presence and they had to plan either around it or with it. The first signs of the social impact of the cryptocurrency were present. However, this was not going to be the end of big social and behavioral changes. That the cryptocurrency would leave upon the world.
Soon enough the bitcoin hit a huge increase in its value and with a relatively easy approach. Many people started to mine it for an easy profit. The bitcoins were flowing from all sides and people were getting rich overnight. This made bitcoin a household name when it came to discussing cryptocurrencies. The social impact was once again felt as people were spending thousands of dollars with the desire to make even more.
It was like the perfect pyramid scheme, but with more and more people actually getting something out of it. Instead of having thousands that were tricked. And duped it actually provided a good opportunity for smart people and opportunistic people. As the presence of the cryptocurrency grew so did the social acceptance of such an item in today’s world. In just a couple of years, the cryptocurrency had made ground from an unknown thing to the biggest technological advancement of the age right behind the invention of the internet.
At this point, people are not even focused on one cryptocurrency as there have been hundreds. That have spawned over a couple of years and even though some went under the radar. Many achieved their goal and became a trading factor in today’s world.
How has cryptocurrency affected our social behaviors?
With cryptocurrency becoming another accepted form of trading. It has helped people share and connect with their money in a faster and cheaper way than the traditional banking method.
While the banks are still here to stay, there has definitely been a shift in awareness of the power of the cryptocurrency and we can expect that in the near future there will either be a push from the banking industry to lower the value of the cryptocurrency or there will be a push from the people to bring down the old banking system in favor of the faster, more viable, and far superior online cryptocurrency banking methods.
It still remains to be seen just how big of an impact. The cryptocurrency of this age will have on both us and the future generation.
Ethereum has been present on the cryptocurrency market for quite some time, and now it’s time to introduce the new method under which the Ethereum will be mined and operated. Ethereum actually began with one idea that is still being realized. Basically, it had levels that it had to achieve and there was time allocated for each desired goal as the thought was to give enough time for each period to prosper naturally and freely.
From the beginning, there were four different levels that Ethereum should go through to reach its final destination and we are currently in the second part and moving to the third which is called the metropolis method.
Here are all four methods:
-Frontier the first method and the one that was launched together with Ethereum.
– Homestead is the second stage, which is also where we are now in this period of time
– Metropolis is the next phase of which we will explain now in the upcoming article in detail
Serenity is the final stage at which point the Ethereum ideals would have been fulfilled.
To better understand the third stage, we have to understand what change is the third stage bringing with itself and here we also have 4 different features that are being introduced for the first time.
Which basically means that senders can guarantee what they are sending without revealing the total amount in their possession.
Proof of Stake early implementation
Proof of stake will be the new method of trading and the new mod of “mining” Ethereum. It’s a form where none of the computing power will be required for computing.
But in fact will reward you an Ethereum for correctly predicting. The market and the possibility of a blockchain containing the Ethereum. However, you can also lose Ethereum if you guess wrong.
Flexibility and robustness of smart contracts
Smart contracts are the name of transactions in Ethereum language. When two people decide to make a trade, the transaction is put in place as a smart contract. If for some reason the transaction gets canceled the smart contract. Still spends gas to put the moved things back in order. This is a waste of resources and the new proposed flexibility. And robustness will fix that and force the program to not spend additional resources to return the initial start and investment of gas at the beginning of smart contracts.
The account abstraction is a move to future proof the security of the Ethereum as quantum computing is on the rise and in some time in the future, it will be able to crack the protection of the keys and digital signatures as its standing in theory now. With account abstraction, Ethereum will give its users another unique signature, or basically a form to customize their wallets and accounts, and nobody can steal that as they would have to know how customized the profile is.
Will this bring Ethereum new positive changes when it comes to its value? Nobody knows, but keep reading our articles as we will definitely post about changes in the near future.
Cryptocurrency is a big subject that has many fine little details that can escape casual readers as the biggest changes happen. In the fine print where you have to follow all the little things that keep making or breaking the price of a certain cryptocurrency. To keep these cryptocurrencies safe, they have invested in a particular protection system called cryptocurrency cryptography and so far. It has proven to be a successful protection system.
Bitcoin and Ethereum are two online currencies that are peer-to-peer and as such install fears within people who want to get themselves in the online trading platforms. The fear comes from the place that since the money. Is completely handled online it is susceptible to theft or hacking. However, in our article we will explain why that is not a possible outcome in the near future.
Digital Signature marks
The first tool to every cryptographical protection system for the online currencies is the digital signature mark that is left behind every transaction. The money can’t just up and vanish into thin air as everyone. That is on the network is connected and every transaction has a digital signature. Think of it as a verification step as when there is no signature there is no transaction being performed.
The signature is unique and nobody else can forge the signature no matter what tools they have. Compare that to the real world where sometimes you have to sign certain things before you can accept them or in the form of paying a bill. And that signature can be easily forged as only professionals could. Tell the difference between a forged signature and the real one. On the online cryptocurrency market, the digital signatures are much safer than the real-life signature.
Now you might be wondering how do these digital signatures work, well they are introduced in a form of keys, and with those keys, you can unlock and use the blockchain.
As cryptography has been used thousands of years in the past. As a form of privacy protection of any given item and especially letters. With the intent of only showing the content of the message to the receiver and nobody else.
So, with all that said the question stands how does one perform a transaction using keys and cryptocurrencies?
For example, subject, A sends their money to subject B, for subject B. To be able to unlock the transaction. And verify who sent him the money he needs the key from the said subject. The amount and the senders and receiver’s private information won’t be available to anyone besides the two-people performing the transaction. But everyone will see on their network that one person lost a certain amount of cryptocurrency while the other gained.
The science behind cryptocurrencies is simple to understand on the surface level, but hard to grasp all the details on how it functions and how it can be broken if at all it can. Let’s just say that for a computer to be able to hack the cryptocurrency cryptography. It would take several quantum computers, which we predict won’t be possible for another 30-50 years.