What is crptocurrency

What Is CryptoCurrency – Is This Really The Future Of Money?

What Is CryptoCurrency? - The Short Version
  1. Bitcoin is the next world revolution.
  2. Nakamoto was trying to ‘fix’ banking problems with Bitcoin.
  3. Bitcoin instantly updates and 3rd party permissions are not needed.
  4. Bitcoin has NO debt.
  5. Bitcoin is non-disputable.

The problem?

We no longer trust the financial institutions to control our money. Bitcoin allows us, to take control of our money. Below, we’ll explore these steps a bit further.

Paco Ahlgren (award-winning financial journalist) says “This may be the purest form of democracy the world has ever known, and I – for one – am thrilled to be here to watch it unfold”

It is important to realize, that if Paco is correct, you could be in the right place at the right time…

Freedom With Bitcoin

At the same time, you may have noticed that over the last couple of years the world seems to have gone Crypto crazy and Bitcoin and Blockchain have constantly been in the news.

Generally speaking, some say it is the next world revolution and the greatest transfer of wealth man has ever known and others say it is a fraud and a total waste of time and energy.

All things considered the world seems to love it…

On the negative side, the governments and financial institutions seem to warn us against it?

So what is Cryptocurrency and why should we care?

Want To Know 5 Powerful Ways You Can Turn Your Computer Into A Cryptocurrency Trading Machine That Will Make You Profit From The Cryptocurrency Revolution TODAY!

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What Is Cryptocurrency?

“If you care about liberty, the nonaggression principle, or economic freedom in general you should do everything you can to use Bitcoin as often as possible in your daily life.” – Roger Ver aka “Bitcoin Jesus” Voluntaryist


To begin with, in 2008 Satoshi Nakamoto announced Bitcoin as a peer-to-peer Electronic Cash system.

In the first place, he was looking for a system that could remove a lot of the problems in the banking system. Generally speaking, banking systems have been for years, inherently slow and expensive and also had restrictive hours of access. Ultimately, these are just a few of the problems that Nakamoto was trying to ‘fix’ with Bitcoin.

Banking Problems

Second, it is a peer-to-peer system which means that ordinary people can send to each other directly using a network rather than using a central server or system.

So Nakamoto was hoping to create a system that would allow users to send money directly to each other using a network rather than traditional banking and money transfer systems.

In fact, the most important part of what Nakamoto was doing, was the creation of a decentralized cash system.

At ISR.UCI.EDU, it is explained that “A decentralized system is one which requires multiple parties to make their own independent decisions”

This means there is no one central authority that acts on behalf of all the different parties. Instead users can transact directly with each other without any third-party.

This was the birth of cryptocurrency

What is Cryptocurrency and What is The Big Big Problem?

Bitcoin and cryptocurrency, seemed to have solved a big problem, but there was a bigger problem that needed to be solved.

This problem was the reason that almost all other online peer-to-peer systems failed.

Here is the big big problem:

How do you prevent one person sending the same amount twice
or more at the same time?

Decentralized

Now in a centralized system, such as a bank or a credit card this is easy to control.

In a decentrliazed system, this is hard to control. To stop this happening you would need to issue an instantly updated list of transactions to everyone within the system.

Which obviously is not possible.

Also if anyone disagrees with the list, then the whole system stops and breaks down.

What you need is what is called ‘absolute consensus’.

Nonetheless Satoshi Nakamoto was the 1st person to make this happen. No one else actually believed it was possible.

Quote: “Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.” – Nassim Taleb

So What Is Cryptocurrency Exactly?

So it is a currency.

Crypto is online…

It is decentralized

More importantly, no one can change or edit crypto.

It is a medium of exchange (just like money, gold or other money)

The Blockchain is the crypto record or ledger

 

How Does The Bank differ From Cryptocurrency?

A bank deposit record is made in a ledger (bank records).

When you transfer cryptocurrency is it also recorded on a ledger (The Blockchain).

The bank makes a daily transaction update.

An instant update of a cryptocurrency transaction is made.

The bank, using a fractional reserve system, increase the value of the deposits, creating debt and the possibility of a bank run or bankruptcy.

Cryptocurrency cannot be manipulated as it is controlled by strict protocols.

In a bank, it is possible to reverse transactions and even alter the ledger.

In a crypto system, it is impossible to reverse or alter a transaction making it incredibly safe.

What makes cryptocurrency unique?

Cryptocurrency Is Unique

1) It is irreversible. Once confirmed a transaction is irreversible. At the same time, this could be a good and bad thing. If you send it for legitimate purposes, the receiver will receive it no questions asked. In contrast, if you send it to someone who is not what they appear to be, the receiver will also receive it, no questions asked. With this in mind maintain caution. The receiver should be legitimate.

2) Anonymous. By anonymous, I mean you do not send to a named account. you send crypto to a 30 digit numbered account. It is possible to see which account the transaction goes to, but it is almost impossible to know who is behind the account. Again maintain caution. The system offers privacy in banking, which could be a good thing in some circumstances.

3) It is secure. A bitcoin address is very secure. Regular hacking of Bitcoin exchange happens. This is not the same as hacking a bitcoin address. You can store cryptocurrency on an exchange (which is basically an online bank) and if their security is not up to standards, then there is a risk. We do not advise you to store any bitcoin that you are not transferring or using at that specific moment on an exchange, but rather you store your crypto on an external hardware device such as a Nano

4) We Don’t Need A 3rd Party. This is one of the best parts of crypto for me. I don’t need to ask an expensive bank or transfer system for permission to transfer funds. Nor do I need to wait for them to be open. Using free software we can transfer funds using crypto anywhere, anytime, no permission needed. No expensive bank charges!

5) Fast, Global, Cheap. Crypto transactions take minutes if not seconds to complete. They are global. Crypto can be sent anywhere and time and costs fractions of a dollar (normally) to send.

6) It has no debt. Previously, gold backed money. No more. Money has no absolutely no backing now and every transaction (based on fractional reserve) creates debt. The very structure of crypto means you can never increase the total amount of bitcoin. In fact the total amount of bitcoin that will ever be available is 21 million coins. It is not possible to create more.

7) No Fractional Reserve. The bank creates debt using a fractional reserve system. Crypto has a controlled release of coins. Bitcoin, for example, will only ever have 21 million coins and these will be slowly released over time until the full release in about 2140. The controlled supply increases the coin value. The banks forgave keep decreasing the value of money by flooding the markets with more and more.

What Is The Future of Crypto Currency?

Crypto is a payment system. It is also a trading system. Moreover, it can also be used for long-term investments.

You can buy and sell crypto at exchanges or you can hold and wait for the price to go up.

You can send it to friends and family and they can transfer to cash. This is a safe way to transfer money to anyone around the world.

However, it is a volatile currency. This makes it an excellent tool for trading. you can literally buy it in one minute and the next minute the price has risen and you make more!

The same is true in reverse too. you can buy crypto and the next minute the price can fall and you lose.

It has very volatile risks, but if you know what you are doing, you can make a lot of money (or coin) over a short period of time.

Bitcoin is the most famous of all coins. It is The Lord of All Coins!

In 2017, the price was about $1000 a coin in February and by December it was over $19,000. you could have made a lot of money.

Then in June 2018 the price dropped to less than $6000 a coin. (It’s a great time to buy).

Resistance To Cryptocurrency and Bitcoin.

Based on what you know so far from this post, can you imagine the reaction of the banks and financial institutions?

With this in mind, if we can bypass their big money-making systems, can you understand why they may want to shut this down?

By the same token, you may often see very negative press reports. The big banks often warn users not to involve themselves in Bitcoin and cryptocurrency.

 

In Oct 2017 Jamie Dimon, CEO and Chairman of JPMorgan Chase said “if you’re stupid enough to buy bitcoin, you’ll pay the price one day”

After this report, the price of Bitcoin fell…

Then in November 2017, it was reported that JPMorgan chase bought over 9000 bitcoins

In this picture below, you can actually see the dip in price. The #68 represents the moment when Dimon made his announcement. See more in this article.

Why do you think the press issue these negative statements?

I would love to hear your comments below.

What is CryptoCurrency

So What is Cryptocurrency – Review

First, cryptocurrency is a digital asset. Crypto works as a medium of exchange. Strong algorithms and cryptograph protect it.

Second, it has a decentralized control system and is a controlled supply.

No central authority is needed to operate and operates independent of banks and external financial systems.

It has a fast and cheap transfer model.

The blockchain records the transactions. They are permanent, anonymous and non-disputable.

I hope that this post has given you a basic understanding of What is Cryptocurrency.

This is however, just the beginning of the journey into increasing your wealth portfolio in Crypto.

Getting more help is easy. Contact Tim here

Want To Know 5 Powerful Ways You Can Turn Your Computer Into A Cryptocurrency Trading Machine That Will Make You Profit From The Cryptocurrency Revolution TODAY!

HELL YEAH !

About The Author: Tim Bennett, The #1 Authority in Bitcoin Training – I help entrepreneurs profit with bitcoin. I think bitcoin is the most important tool that has ever been created in my life.

I have been on a 13-year quest to find a tool to give us freedom of control over money. Bitcoin is it!

Disclaimer:
I am not a financial advisor. all content on this website is provided for informational purposes only. The information does not constitute investment advice, financial advice or any sort of advice at all. NONE of this website’s content is advice of any kind and you should not treat is as such.

We do not recommend that you invest. We do not advise you to buy, sell, trade or hold (HODL) cryptocurrency, altcoins, bitcoins, tokens or any form of cryptocurrency.

We are making no offers to sell, buy, trade or hold any investment or cryptocurrency product. Nothing on this website should be taken as an offer.
Conduct your own due diligence and consult with financial advisors, business advisors and any other kind of professional that you deem fit, before making any investment decisions.

By investing, joining any programs or services or taking any action on any information on this website, you accept full responsibility and waive Timothy Bennett or any of his business associates free from responsibility, claim, lien, or harm of any kind.

Accuracy of Information
Much of what we share is experiential. It is our experience. We cannot guarantee your experience. We have taken every step to ensure that the information given is correct. We will not be held responsible for any missing or wrong information. You understand that you are using any and all information available here AT YOUR OWN RISK.


Price Risk
We discuss bitcoin and cryptocurrencies on this website. They are highly speculative and volatile. Prices can and do change incredibly fast and it is common to see massive high and low swings. Massive losses can be incurred. You use this website accepting all losses as your responsibility. NEVER invest any more than you can afford to lose. Minimize your losses. DO NOT invest all your money in bitcoin or cryptocurrencies. Do not borrow money to invest. Do not sell valuable items to invest. Do not use pension funds, school funds or any other fund to invest. Only invest money which you can afford to lose.

It is possible, that bitcoin and cryptocurrency is not for you. Consult a fully qualified professional financial advisor before investing.
  1. I don’t really know about crypto currency know as bitcoin but I do know it truly suppose this like knew wave of opportunity but I’ve read it can be risky and I glad you made this article because it tells me the big problem as you and I honestly want to solve that problem

    • Hello Harold and welcome to the site.

      I appreciate you visiting and leaving a comment so very much.

      Welcome to cryptocurrency too.

      Bitcoin and Cryptocurrency is as risky as any other investments and 1) Do NOT ever invest any money you cannot afford to lose and 2) Never invest money that is for savings / nest eggs / retirement / school funds / etc.

      That being said, there is massive opportunity with crypto and bitcoin. They are in their infancy and are integrating nicely into our society in the same way the internet did.

      Do you remember that “what’s www?” phase? We are there now in bitcoin… “What’s bitcoin?”

      Soon it will be part of our lives the same way internet is now and we will wonder how we managed without it.

      Most of the risks come from lack of understanding. When you understand bitcoin and what it is for, it become easier.

      There is a lot of hype and negative press and it is important to look past that as most of it is deliberate misinformation, designed to make people scared.

      Bitcoin is just starting, so if you would like to be involved and if you would like me to help you along the way, feel free to contact me here.

      I would be very happy to get you started in a very simple step-by-step way.

      Thanks again for stopping by.

      Regards,

      Tim Bennett

      Addicted To Bitcoin

  2. I found it laughable when the government and banks warn against anything like bitcoin that may be in the best interest of the public. Id rather get an unbiased opinion. Theirs seem pretty biased. After all, the system is designed to enrich those who own banking stocks or in government at the expense of the general public. A wolf is going to tell sheep that it’s harmless even though it’s dangerous. 

    • Hi Jessie,

      You hit it the nail right on the head!

      If you investigate, you will see people such as Jamie Dimon (an appropriate name) telling his staff that bitcoin is a fraud and that he will fire anyone who buys it…

      Then JPMorgan (who he is part of) buy millions of dollars of bitcoin.

      A wolf is indeed always a wolf!

      Thank you for your comment and input.

      Tim

  3. Hey Tim,

    Thanks for a very very detailed article on Bitcoin and Blockchain. You haven’t gone deeply into the nuts and bolts of the Blockchain, but you gave a great overviews of what Cryptocurrency is, how it works and how it differs from the banks. Your advice is also great. There is no turning back after a transaction is verified and stored in the blockchain, so, indeed, one needs to be careful.

    How do you see cryptocurrency in the future?

    Marios

    • Hello Marios,

      Thank you for taking the time to be included in the discussion.

      Correct as of yet I have not discussed Blockchain much.

      I can certainly make that a post for the future.

      The future of bitcoin is going to be interesting. I think we will see a battle between the regulators (who do not want a decentralized trust-less banking system) and the rest of the world.

      Dissatisfaction is spreading globally. every day there is news of another rally or protest of somekind as we the people react to our governments manipulation of us.

      once the world sees the truth in the banking system, I believe we will move away from central banking and adopt crypto as a solution.

      I believe this will massively increase the value of bitcoin.

      Now could be the last time we see these kind of bitcoin prices

      Tim

  4. Hello,

    Just over a month ago, I was introduced to a man who explained crytpocurrency to me.   I understand it is decentralized and works immediately.  Send money from here to there and it is in your wallet.

    So we are heading towards that now.  There are many cryptos, Bitcoin being the leader.  Each currency doing something slightly different from each other.  However as the crypto market is volatile, you need to have spare money if you want to trade with it.  

    You could gain a lot and also lose a lot in its current position in trading markets.  But it is here to stay.

    • Hello Stella,

      Thank you for joining the conversation.

      You are right, we are heading towards a decentralized banking system. One day we will look back and make jokes about banks and people won’t know what we are talking about.

      If you buy and sell crypto based on short term price movement, I think that you can make a lot and also lose a lot.

      I personally prefer to look long term.

      Once mass adoptions starts there is pretty much only 1 way bitcoin will go.

      I hope!

      Tim

  5. This is s a great review! Thanks for this. What Is CryptoCurrency – Is This Really The Future Of Money?Blog. This review is very helpful to those people like me who likes to learn more about cryptocurrency .May I know if Satoshi Nakamoto is the creator of Cryptocurrency? Love to read more about your upcoming blog.

    • Hi Bong,

      Thank you for you taking time to be part of the conversation here.

      I appreciate it.

      Satoshi Nakamoto is given the credit for being the creator of the white paper (https://bitcoin.org/bitcoin.pdf)

      If you download a copy of that you will see the name at the top.

      However, the actual identity of Satoshi is not known. Is it a single person? Is it a group of people using a name?

      We do not know…

      Satoshi was given credit in bitcoin though as the smallest part of a bitcoin is a satoshi)

      Hope that helps.

      Tim

  6. Dear Coach,

    Although I started accumulating some cryptocurrency to be honest I am not 100% sure and I use to struggle to explain about Cryptocurrency with my friends. Your post gave me a clear understanding. 

    I must say I found your post highly uplifting and educational and I can tell you I have taken some great insights from your post.

    After reading your post, I completely understand it and now I realized the benefits and its importance.

    For sure Cryptocurrency is the FUTURE and I am going to accumulate as much as I can.

    Wishing you great Success!

    Paul

    • Hello again my dear friend Paul.

      I am happy to help you understand crypto and bitcoin a bit more.

      I think a lot of the doubt about bitcoin goes to the lack of understanding.

      Many people see it as a gimmick or ‘dark’ tool, whilst in fact it is a whole new banking system

      Thanks for being part of the journey.

      Tim

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