Cryptocurrency is the present and the future. Cryptocurrency is not like traditional fiat paper currency. Currency is truly energy and a vehicle of value based upon a collective agreement. When you, I and another party agree that quartz mineral is valuable the three of us then we can use it to buy goods and services from each other. That is how currency works. In the United States, the dollar was once backed by gold and silver. This meant that a one dollar bill could be exchanged for a dollar worth of gold (or silver). This was know as the gold standard. However over time the U.S. government produced more and more paper money. The amount of gold was finite and did not change. The U.S. dollar began to lose its value as too many dollars flooded the market and prices of items began to inflate. Cryptocurrency is different and aims to solve the problem of inflation.
What is Cryptocurrency Anyway?
Cryptocurrency is digital currency. When your paycheck is direct deposited into your bank account you never see the actual currency. We make purchases with plastic cards effectively exchanging currency or credits goods and services. Cryptocurrency should actually feel right at home for most of us. The biggest differences is that crypto is finite (like gold) and it is based upon a mathematical algorithm. This means only a certain amount will ever be produced. Cryptocurrency is not backed by any single government. Governments are trying to regulate its use within their borders and markets. Why not, if Bitcoin becomes the way that citizens choose to transact and exchange credits governments will need to get on board in order to stay afloat.
Education is Key
Education is your key to understanding this relatively new market. Blogs, videos, podcasts, forums and experience are the avenues to get your education. Youtube has a lot of talks on the subject from over the past five years. This video on the technology behind cryptocurrency is a great place to start. Coindesk is a very popular crypto blog that reports on the Bitcoin market. The Let’s Talk Bitcoin Network is a network of BTC related podcasts. Once you make a habit of reading news and listening to podcasts you will be much more comfortable with the cryptocurrency markets.
The Time is Now
At the time of this writing the price of bitcoin is $621 USD. In the past it has been as high as $1,000. But the climb today is very much catching the attention of investors. How many of us wish we bought stock in Google back in the day. Bitcoin could be your Google.
If you would like to simply buy some bitcoin to get into the economy use Coinbase. You can open an account in moments and connect your payment method to start buying bitcoin. Once you are holding some bitcoin, you are more likely to want to know what is happening with the market. Get into the game and play around a bit in bitcoin trading.