Cryptocurrencies are a type of digital currency that is decentralized and have no centralized control. In contrast, centralized currency such as the US dollar, are controlled by a central banking system (i.e Federal Reserve). Cryptocurrencies, such as Bitcoin, have become extremely popular over the last year due to strong demand and even bigger profits. December of 2017 brought Bitcoins value to approximately $18,000/coin.
This rapid increase in value fueled the mind of speculators and institutional investors.
Find what you’re good at, and find a way to make money doing it.
This is crucial for young people; establishing an extra stream of income will allow you to start investing earlier.
Cryptocurrencies such as Bitcoin, maintain total decentralized control by a blockchain. blockchain is a public transactional database that works as a distributed ledger. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.
In 2009, Bitcoin was the first decentralize cryptocurrency followed by numerous other crypto backed currencies. Alternative crypto coins are commonly called altcoins (a mix of alternative coins). As of April 2018, there is approximately 17,000,000 Bitcoins in circulation.
In cryptocurrency, mining creates the currency and successful mining techniques generate crypto coins as the payoff. Mining involves solving complex hash algorithms using the processing power of CPUs (central processing units) and other complex computing systems.
Generating hashes have become more complex over the years, thus limiting the amount of crypto that can be generated. This also is a direct affect of the current market price of the currency (i.e Bitcoin price).