Are Cryptocurrencies Here to Stay?
Essentially cryptocurrencies are digital assets that are stored on a ledger. It is a distributed ledger which makes it safe. This is done by using blockchain technology. It is very secure and almost impossible to be counterfeited. Blockchain is essentially a ledger of transactions that is distributed across an entire network simultaneously, therefore making it impossible to change, hack or cheat the system.
21 Bitcoin and not a Coin More
The most famous cryptocurrency is the bitcoin. It was the first cryptocurrency. Created in 2008, right after the financial crisis. It is a currency of mines that works with algorithms and in order to produce bitcoin it has to go through a number of algorithms to retrieve information. From the beginning there was only a limited amount of bitcoin created. The maximum amount produced is 21 million and currently there are 18-19 million circulating. At first it was easy for people to buy and loads of people had bitcoins. At the time they value was not very significant, although if you have been following bitcoin’s performance you would have noticed the massive upward incline. Towards the end of 2020 and the beginning of 2021 the price of bitcoin went through the roof. On present day bitcoin is currently at $49,343 compared to end of January were it was at $32,288.
What About Other Cryptocurrencies ?
There are a plenty of other cryptocurrencies available on the market. One of them is Ethereum and it is the second largest cryptocurrency. It was first created in 2015, and in the latest months its price is increasing all the more.
What is a Smart Contract?
A smart contract is a self-executing contract where the terms of the agreement are written in code. This is done with the help of blockchain technology. The code controls the execution, and transaction are traceable and irreversible. Smart contract allow for trusted transactions and agreements.
If you are interested in investing in bitcoin or already are an investor, it is convenient to have a crypto wallet, specially if you have made large investments. A wallet is a software that stores private or public keys and interacts with various blockchains and enables users to send and receive digital currency, and of course check the balance. A wallet can be created through exchange platforms such as Revolut or Coinbase. Otherwise you keep your digital currencies on paper and use a special type of memory stick that is encoded.
Risk of Cryptocurrency
Just like anything else in life, crypto comes with its own baggage. Whether you trade cryptos, invest in them, or simply hold on to them for the future,you must understand the risks beforehand. Crypto is extremely volatile, to give you an example, back in 2017 the price of most major cryptocurrencies, including Bitcoin, skyrocketed above 1,000 percent and then came crashing down. Although the crypto hype has calm down, it is very important to have enough knowledge before getting involved. Crypto is one way to create prosperity and it can be done a very accelerated way. However, be mindful of the ups and downs.
If cryptocurrencies are your cup of tea, at The Access Club we have a fantastic partnership with one of the master of cryptocurrencies Marcus de Maria and he will be part of the curriculum for those who are members of the club.