![ctto to DrawKit Illustrations]
I've been trying so hard to convince people to jump into crypto as early as 2017 as I've already seen what will happen in the future. The ones who I got at least to let me explain about crypto were either fearful or still think that it's a scam. No one believed me then, but now with Bitcoin having produced many millionaires, I am now kind of the go-to guy for crypto matters.
Even Wall Street has succumbed to the undeniability of what Bitcoin and other blue chip coins has to offer.
Most people think when asked why would they buy bitcoin, unlike gold, has value, right? Gold for them is a scarce resource and just being a pretty and shiny metal. They think that somebody just minted digital money and that's that, $60,000 per coin. For them, they can't grasp the idea of not having something physical to have value.
But I guess it will take a while for some people to get that we are ushering to the new age where everything is getting digitized.
However, for Bitcoin, it's actually more complex but hopefully I can simplify it more. Bitcoin pioneered blockchain technology. Blockchain is a form of coding where hacking is near impossible to do. Near impossible because it can possibly be still be hacked but a hacker would need a mega-ultra-super computer to do so.
PayPal is also a digital form of money, right? But since PayPal is not blockchain, it is really quite susceptible to skillful hackers. In fact, PayPal had been targeted by hackers a while back some time.
Blockchain works like this, say, you're buying a car with bitcoin. On the purchase let's say your name, amount paid, model of the car information were taken. Those three data form one block and will be sent to a central network.
The central network then will duplicate that information and send them to all computers connected to it. Let's say there are a million computers connected to the main network, then for a hacker to edit a transaction, it has to edit the log on the main network and also half of the total computers where the data was sent.
Even NASA computers doesn't have enough computing power to do that, and that's why it is quite not possible to hack a blockchain network. Aside from difficulty of hacking, blockchain transactions are final and un-editable.
Now apply this to any other form of applications like elections, accounting, supply chain distribution, hotel booking, purchase of tickets, betting, playing games, the possibilities are endless, blockchain technology is set to transform how we do things like when internet was introduced.
At first, the impact of internet was just on post offices, but then everything became "internetized." Think of it as everything will be "blockchainized."
Blockchain in the form of cryptocurrencies are kind of the next upgrade to internet. And that is why people are now looking at how to integrate blockchain into any kind of facet of life because to not do so, especially businesses, would just find themselves obsolete like businesses involved in camera that use films, video rentals, CDs, DVDs to name a few. Even the banking sector is feeling the brunt of Bitcoin now.
This is the first tip I can give any newbie is to understand why Bitcoin and other cryptocurrencies are going to change the world. You need to understand that they are not merely coins but they are new technologies that are going to solve real world problems with much more speed and transparency. Everyday more and more blockchain/crypto projects are being introduced, and usually they have intended use cases that are designed to solve specific problems/challenges.
One example is XRP. XRP is intended to solve the archaic SWIFT system used by banks in sending remittances around the world. Before to send money from Country A to Country B will take 3 days or thereabouts, now with XRP, 4 seconds is what will it take to send money plus fees are way way lower. Things like these. XRP made transferring money faster and cheaper. Why wouldn't people like that? I had experienced getting a needed remittance to be received as early as possible, but I got it after eight days as it so happens the day I was supposed to receive the money coincided with holidays and weekends, and so three days became eight days. Imagine that!
Ethereum on the other hand specializes on smart contracts. Once all conditions are met, the contract will just run by itself. For example, one guy has a will of testament, and he executed a smart contract, his heirs will just received their inheritance even without a last will of testament as auto deposits to their bank accounts or that just lawyers will just contact them that a piece of land was transferred to them. So things like that. There could be other applications of smart contracts where things just get done in a snap.
![ctto Sam Dan Truong]
So this is my first tip, understanding what truly blockchain technology is. Once you grasp how these projects can change the world, then you know you can't go wrong. Research is always key to any investment, and knowing the nature of crypto coins and blockchains is the first step. Like in metaphysics, knowing the first cause is always the key.
My next posts will be going over which blockchain networks are good to invest in and what are their possible use cases. I will also post more on trading strategies. I already posted two strategies that any newbie can follow.
For more strategies and crypto reviews, just follow me so you won't miss one.
Happy investing!