CRYPTOCURRENCY SIMPLIFIED - BIG OPPORTUNITY FOR WEALTH CREATION

The topic of Cryptocurrencies has become a confusion for many and makes people wonder what at all it is, due to the rush in people trying to talk more about the money aspect of it. All many have heard about is Bitcoin. My goal is to make it as simple and easy for you to understand. After which you can get all the confidence to explore its possibilities. Bitcoin is just one of the many cryptocurrencies in the system. There are many options for you. So let us get on with it.

What is a Cryptocurrency?

Cryptocurrency is a secured digital representation of the money we use daily. Talk about the coins and notes we are used to depositing and withdrawing from banks. Simply its money.

The money we use every day for our banking is printed by the central bank. The amount of money in circulation in the economy or country is also determined and regulated by the Central Bank. On the other side, that is the reason why you see very new notes in the system. New notes replacing old notes and further enhancing cash flow in the economy. Believe me, it is expensive printing bank notes for use by people. A big problem, which is why money is moving digital and the best idea for it is to be highly secured.

Unlike bank notes, cryptocurrencies are not controlled by a central government, they are not printed and does not get old. It doesn’t have unlimited supply but fixed in the amount that can be in circulation.

For example, denominations of a bank note may be supplied occasionally and will never stop because of the need to replace old and worn-out paper currency with new ones. But for a Cryptocurrency, supply is limited to a fixed amount, let us say 20million units. Which means, only 20 million units of a particular cryptocurrency will be available for use by the whole population of a country/world.

What happens then if a country’s population is beyond that 20 million units?

Simple, thanks to encryption, cryptocurrencies are able to disintegrate itself into various units to be used by lots of people. For Instance, sharing GHC1 note to 15 people. It will be difficult to cut the GHC1 into 15 pieces to be used by them. That is hilarious. The moment a scissor cuts the Ghana Cedi bill, it is useless. But cryptocurrencies are not like that, encryption enabled divisibility allow it to be done. Each unit divided is unique and has its own code as well as time stamped. Meaning, one cryptocurrency can be used by several people for different transactions. This makes it difficult to have it counterfeited. That is another important point to note. No counterfeit with cryptocurrencies. A secret to its growth.

How do I know that a transaction has occurred with a cryptocurrency? Thanks to encryption, every transaction conducted with a cryptocurrency is recorded on an online ledger/database that is accessible to all. This ledger or database is called Blockchain. I will talk about Blockchain in my next piece. This makes transactions transparent and trusted.

How secured is it to have a cryptocurrency?

One beautiful thing about cryptocurrencies is, you get to be your own bank. You become totally in charge of your money. No government influence, it’s not subject to any bank control, no third party issues and no control by anyone. You are totally In charge of your funds which is one beautiful thing because your transactions are always validated and confirmed by a network.

Your keys are privately kept by you. When it comes to security, you can imagine it with cryptography.

So how come, cryptocurrencies have values and increases in value too?

Interestingly, their prices are as a result of demand and supply. Basic economics here. Higher demand over supply means higher values and vice versa. This is where the money is especially if you see a good Cryptocurrency early. That is the reason for the price escalation of popular cryptocurrencies like Bitcoin, Ethereum, Z-cash among others. And it is a must consider for investors both young and old. This is a secret and profitable area you need to take a look at.

Cryptocurrencies are currently where the internet was in 1990, and for any investor and entrepreneur, this is the best time to gain a solid advantage. Whatever it is, understanding is key and I will be guiding you to take advantage of this budding industry.

Watch out for "Buying the future Cheap Series".

Please Like and share, let your friends know about it because something big is happening.

See you at the top.