When Bitcoin made its debut a few years ago, it interested only the fanatics of crypto currency. It was then infinitely less than $ 1. Then this inovation spread throughout the world. More and more people saw a currency that would escape the central banks’ regulations. A currency that, unlike gold, would surpass all physical and material constraints.
The technology on which the Bitcoin rests, the blockchain, could not only be the future of money. It could revolutionize everything. Block-based systems – block chains, therefore – can be used to transparently account and record just about any transaction.
The incredible success of crypto currency and blockchain proves it all
The potential of crypto currency and block chain has not escaped investors. Today, a bitcoin is worth thousands of dollars. Competitive currencies using similar technology have emerged over the years. Other popular alternatives include the Ether, Litecoin, Peercoin, Primecoin, Namecoin, Ripple, and the list goes on and on.
The Ether alone is up more than 5,000% since the beginning of the year. If you are an investor, the compass points towards the right direction. Unless, of course, you are also fearful of the fluctuating crypto currency market.
Reward and transparency in crypto currency are more than physical money
Traditional money – like the dollar or the euro – is, so to speak, created from a centralized system – central banks. In the past, creating money was largely a matter of printing more tickets or producing more coins.
Today, this creation is essentially digital. Thanks to the blockchain technology. The system is distributed and transparent. There is no unpredictability in the creation of new crypto currency. This is one of the reasons for the existence of crypto currencies: they are intrinsically better than the traditional currencies that we use on a daily basis – and the more reason why you should, as an investor, not overlook this technology.
When to go to the mine – Mining in crypto currency is clean
Crypto currencies like the Bitcoin and Ethereum follow a carefully defined protocol in terms of money creation. This is called “mining”. Like the extraction of gold, the exploitation of the crypto currencies is difficult. It does not take place underground by exploiting men and machines to extract precious metal. In the case of Bitcoin et al., Everything is virtual and digital.
Crypto currency miners use the ability of their computers to solve computations. Once these calculations are done, a new crypto currency is created … and that lands directly in the account of the minor. With time, and as the mass of circulating crypto increases, these calculations become more and more complex. Miners, therefore, need to constantly increase the computing power of their computers.
If there is something you would really want to put your money in, then you should consider investing in the blockchain technology, and equally in the crypto currency market. Though we cannot trash the high fluctuations in the crypto currency market, previous crypto data points to the right direction – and an investment in such a technology will surely bring good returns.