Whenever someone mentions that they know about cryptocurrencies, the following questions are always related to money. Did they make a lot of money when the market was high? Which coins do they recommend? What’s going to be the next thing that goes to the moon? What should you sell, and what should you hold?
All of these questions are missing the purpose of crypto, which is to become a virtual or digital currency that’s protected with encryption. The internet has finally made it possible to make double-spending and counterfeiting impossible. Click on this link to read more.
You can make a dollar bill on your own that could fool a cashier in a store, but you can’t create a Bitcoin no matter how hard you tried. The main reason why the system is so robust is due to blockchain technology which works just like a ledger in a bank.
Plus, one of the best about the whole crypto niche is the absence of a central governing body which makes them resistant to manipulations and interventions by the government. There are many uses for this type of technology, mainly because it spreads out to so many computers at once.
This decentralized nature makes them completely safe and better than the traditional way we look at banking and law. Of course, whenever something new gets in the public eye, the initial reaction is negative. When electricity and lamps were first shown to people, they thought it was the devil’s spawn.
The same thing is happening with crypto because many people think that the main use is criminal, as well as the high volatility which makes it hard to predict. The main praise comes from millennials and younger generations that praise transparency, inflation resistance, divisibility, and portability.
Things you need to know
A cryptocurrency is essentially a virtual token that represents information. Bitcoin was the first one that was launched, and it’s still lucrative and popular. However, it also has a lot of flaws. That’s why so many new coins popped up in the last couple of years. Visit this link for more info https://www.wsj.com/articles/accountants-lawmakers-urge-rules-on-crypto-accounting-11626687002.
They’re known as altcoins, and they have their own features and requirements. They’re divided between forks and clones of Bitcoin, but some are completely novel that has been built from the ground up. Satoshi Nakamoto was the first person that published a whitepaper about crypto all the way back in 2009, immediately after the market crash.
Now, the worth of bitcoin is around 1 trillion dollars, and the entire market cap of this niche rose up to 2 trillion dollars. The reason why these coins are the future is that they’re immune to hacking. The encryption used to develop them was intended for military reasons.
However, that backfired. When crypto was given to the internet, it took a completely new form. Governments still wanted to regulate it, just like they have regulations with firearms, but it’s impossible.
Advantages and disadvantages
When it comes to the advantages, the first one is removing a centralized system from peer-to-peer payments. This means that you won’t need the bank or the credit card company to validate your transactions. The network will do it.
All of the transactions will be protected by private and public keys, which are impossible to trace. Plus, there are two ways in which a cryptocurrency can work on. The first one is called Proof of Work, which is when computers are competing to find a hash for a new block.
The second one is called Proof of Stake, in which users delegate their coins for the network to function. Both of these systems have their own advantages and drawbacks, and it’s likely that we’ll see a combination of both in the future since that’s the best option for now.
Every user has a wallet, and you can perform all of the operations as in a bank with minimum transaction fees. This is a lucrative way for users to switch their payment operators. When it comes to the disadvantages, anonymity comes first. You can think of it like a sword with two blades.
You can evade taxes and perform money laundering by using crypto. However, anonymity is an integral part of this system which protects activists and whistleblowers in hostile regimes. You can see all the things that happened to Edward Snowden and Julian Assange. They told the truth to the world, and the governments can’t wait to get their hands on them.
PKT Cash
This is one of the newest cryptocurrencies, which has a brilliant incentive. The goal of PKT Cash Crypto is to create an alternate internet by using the one we have now. Let’s explain that a bit more simply. Internet service providers give us a limited amount of bandwidth each month.
You can either spend it all or not, and they’re still going to charge you the same. Well, most people don’t use up all of their bandwidth. If you have a node from the PKT Network, you can get money for your unspent internet.
The more users get together and do this, the faster a better internet will be born. Then, you’ll be getting money for using it. Plus, the whole issue of free speech will be solved. Now, major companies like Google, Facebook, Instagram, TikTok, and YouTube can censor anyone they want, even if someone is telling the truth.
Combine that with the whole social justice trends in politics and public life, and you get a disaster. A decentralized network is a much better way to operate. Everyone remembers the old days on the internet when everything was fun. All the websites now look like shops that are forcing you to buy something.
Giving freedom back to the people is what needs to happen. Now that we’re in a bear market, you’ll notice that the prices are based on supply and demand. Scarcity is the thing that perfectly represents the world of crypto, and this is the perfect time to start investing. It’s the most secure way in which finances can be operated, and the quicker you learn about it, the faster it will come.
