Crypto Currency Had A Great Profitable Year, Is It For You?

July 22, 2023,

We’re still trying to catch up.

The world is too.

Bitcoin.

Cryptocurrency.

To use it, you first have to understand it. Thoroughly. That is the hard part. And even those who think they do, have lost a ton of money.

Excuse us. A ton of crypto. Whatever the heck that is.

Talk about fool’s gold.

A cryptocurrency, is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

No bank?

No government?

Who have replaced them?

Instead, some have said it is run by a bunch of extremely bright and supremely intelligent, dishonest psychopaths.

It is a decentralized system for verifying that the parties to a transaction have the money they claim to have, eliminating the need for traditional intermediaries, such as banks, when funds are being transferred between two entities.

See, that is the challenge. You don’t have to be real bright to understand the basic function of traditional money.

Save more than you spend.

Put the overage in the bank.

Keep adding to it to build up a nest egg.

See what we mean?

Cryptocurrency is not that way. Comes across as very complicated.

Let’s try and understand it again. Forbes Magazine educates, “A cryptocurrency is a digital, encrypted, and decentralized medium of exchange. Unlike the U.S. Dollar or the Euro, there is no central authority that manages and maintains the value of a cryptocurrency. Instead, these tasks are broadly distributed among a cryptocurrency’s users via the internet.”

With no regulation.

Regulation has often been tagged as a bad thing, but with cryptocurrency, we suspect it is a much needed thing.

Time to dig further.

The team at usa.kaspersky.com adds, “Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.”

We want to break this down. As they used to say back in the 1960’s, first you gotta get up, to get down.

What is a digital entry? We think we know what it is, but we want to be a little more certain.

The informative source pwc.com explains, “A digital asset is created, or minted, when new information is added to a particular blockchain. Through blockchain entries, users can exchange existing digital assets and/or create new (mint) ones.”

Okay, so individual coin ownership records are stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership.

Which brings us to blockchain.

A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes.

Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Since each block contains information about the previous block, they effectively form a chain with each additional block linking to the ones before it.

Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

Makes a little more sense.

The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology that Powers Them (Cryptography, Derivatives Investments, Futures Trading, Digital Assets, NFT) Hardcover – Illustrated, September 15, 2018

By Antony Lewis (Author)

“#1 Best Seller in Investing Derivatives and Natural Resource Extraction Industry, Futures Trading, Banks & Banking, Energy & Mining, Monetary Policy, and Computers & Technology

There’s a lot written on cryptocurrency and blockchains. But, for the uninitiated, most of this information can be indecipherable. The Basics of Bitcoins and Blockchains provides a clear guide to this new currency and the revolutionary technology that powers it.

Bitcoin, Ethereum, and other cryptocurrencies. Gain an understanding of a broad spectrum of Bitcoin topics including the history of Bitcoin, the Bitcoin blockchain, and Bitcoin buying, selling, and mining. Learn how payments are made, and how to put a value on cryptocurrencies and digital tokens.

Blockchain technology. What exactly is a blockchain, how does it work, and why is it important? The Basics of Bitcoins and Blockchains answers these questions and more. Learn about notable blockchain platforms, smart contracts, and other important facets of blockchains and their function in the changing cyber-economy.

Things to know before buying cryptocurrencies. Find trustworthy and balanced insights into Bitcoin investing and investing in other cryptocurrency. Discover the risks and mitigations, learn how to identify scams, and understand cryptocurrency exchanges, digital wallets, and regulations.

Learn about:

Blockchain technology and how it works
Workings of the cryptocurrency market
Evolution and potential impacts of Bitcoin and blockchains on global businesses

You’ve read books such as Blockchain Bubble or Revolution, Cryptoassets, Blockchain Technology Explained, Blockchain Revolution, The Bitcoin Standard, Mastering Bitcoin, or Bitcoin For Dummies, but to really understand the technology read The Basics of Bitcoins and Blockchains.”

Very good.

This book appears to break it down in ways that the average person can understand. Then you have to take it further.

One thing is for certain, based upon everything we have read and researched, cryptocurrency is not a fad that is going away. At least not anytime soon. Having said that, this electronic industry has not remotely convinced everyone it is legit as it is banned by a number of governments.

So, we will have to wait and see. But you know what?