“Crypto” – or “crypto currencies” – is a type of software system that provides transactional functionality to users over the Internet. The most important feature of the system is its decentralized nature – typically provided by the block chain database system.
Blockchain and “cryptocurrencies” have recently become important elements of the global zeitgeist; typically as a result of the “price” of Bitcoin skyrocketing. This has led to millions of people participating in the market, with many of the “Bitcoin exchanges” undergoing massive infrastructure strains as demand has increased.
The most important point to note about “crypto” is that although it actually serves a purpose (cross-border transactions over the Internet), it does not provide any other financial benefit. In other words, your “intrinsic value” is strictly limited in the ability to transact with other people; NOT on storing/spreading value (which is what most people see).
The most important thing to keep in mind is that “Bitcoin” and the like are payment networks – NOT “coins”. This will be covered more deeply in a second; The most important thing to realize is that “getting rich” with BTC is not about giving people a better economic position; it is simply the process of being able to buy the “coins” at a low price and sell them higher.
To this end, when looking at “crypto”, you must first understand how it actually works and where its “value” really resides…
Decentralized Payment Networks…
As mentioned, the key to remember about “Crypto” is that it is efficiently a decentralized payment network. Think Visa/Mastercard without the central processing system.
This is important because it highlights the real reason why people have really started to look at the “Bitcoin” proposal more deeply; gives you the ability to send/receive money from anyone around the world, as long as you have your Bitcoin wallet address.
The reason this puts a “price” on the various “coins” is due to the misconception that “Bitcoin” will somehow give you the ability to earn money by virtue of being a “crypto” asset. it doesn’t
Tea ONLY The way people have been making money with Bitcoin has been by “raising” its price: buying the “coins” at a low price and selling them at a MUCH higher price. While it worked well for many people, it was actually based on the “big chump theory” which essentially states that if you manage to “sell” the coins, it’s to a “big chump” than you.
This means that if you’re looking to get involved with the “crypto” space today, you’re basically looking to buy any of the “coins” (even “alt” coins) that are cheap (or inexpensive), and ride their price up until you sell them. later. Because none of the “coins” are backed by real world assets, there is no way to estimate when/if/how this will work.
future growth
For all intents and purposes, “Bitcoin” is spent force.
The epic rally of December 2017 indicated massive adoption, and while its price will likely continue to grow until it hits the $20,000+ range, buying one of the coins today will basically be a big bet that this will happen.
The smart money is already considering most of the “alt” coins (Ethereum/Ripple, etc.) which are relatively low in price, but are continually growing in price and adoption. The key thing to keep in mind in the modern “crypto” space is how the various “platform” systems are actually used.
Such is the fast-paced “tech” space; Ethereum and Ripple see themselves as the next “Bitcoin”, with a focus on how they can provide users with the ability to actually use “decentralized applications” (DApps) in addition to their underlying networks to get functionality to work.
This means that if you’re looking for the next level of “crypto” growth, it’s almost certainly going to come from the various platforms you can identify.
