CRYPTOCURRENCY BASICS FOR BEGINNERS
We might need to pay for snacks with crypto any day now.
Technology is now making its way into the investment industry. There were only two types of investments in the past, tangible assets such as gold, property, or collectibles, and paper investment such as deposits, stocks, bonds, or mutual funds.
With the help of technology, you can now make a deposit using internet banking, buy stocks using a mobile phone app, and buy gold digitally rather than physically go to stores that sell gold. Thanks to technological advancements, it's easier to acquire your investments digitally using your gadgets.
Technology and the internet have undergone a remarkable transformation since 2009, and you can compare it with 2021's. You might already be familiar with the term "blockchain", a technology that has recently rocked the financial world.
Blockchain, in theory, is a high-level internet technology that allows two internet users to interact directly with one another without the necessity of servers or mediators.
Blockchain allows you to transfer assets to other people directly, without any middlemen involved. This isn't just about debit and credit. For example, if you're going to wire some money to a specific country, you can just convert your money to the available currency on the blockchain. Within 5-10 minutes, your friend's going to receive it, and they simply need to convert it to their currency.
Don't forget that all of that can be done merely through a mobile phone app.
A cryptocurrency is a type of currency that is registered on the blockchain. The money used in the blockchain to move assets to each other is called bitcoin or cryptocurrency, and the communication process on the blockchain employs a language called cryptography. Bitcoin was the first cryptocurrency to be utilized on the blockchain, which also happened to be the world's first blockchain.
There are numerous blockchain brands on the market as of this writing. Apart from Bitcoin, other blockchain brands include Etherium, Cardano, Solana, Elrond, and many others, are starting to pop up.
Every blockchain has its own monetary system. The currency name for Etherium, for example, is ETH. ADA is the name for Cardano, SOL is the currency name for Solana, and Elrond is called EGLD.
Of course, each blockchain strives to be the greatest, and what they're going to do is a race to offer themselves to software developers so that they will construct programs on their blockchain.
The most exciting thing right now is that blockchain could be an investment tool. Understandably, having a digital investment might sound unusual and unconvincing, but we shouldn't resist technology's growth because people are also growing and here's why.
You can have an asset or investment without physical stuff. All of your records will be stored digitally and can be accessed easily in the future. Having crypto is almost like having your own bank because they're not under the control of any country or organization.
They are limited
They have a limited amount of digital chips, which means the more people are joining in, the higher the price's going to be per chip. Logically, you can already imagine the price of one chip in the future if more people are getting into blockchain.
They haven't had a lot of users
Blockchain and crypto are still considered "weird" in the eye of society. Some people are even skeptical about this type of investment. However, it's possible that online applications will be using cryptocurrency instead of IDR, USD, and WON as payment in the future. That's why it's quite a good reason to join the blockchain now before many people join and make the price too high.
However, in Indonesia, cryptocurrencies are still not allowed to be used as the main currency. They're only allowed to use it for personal matters and investment, not public transactions. But maybe, in 5-10 years, it will be recognized worldwide.
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