Some FAQ’s about cryptocurrencies. These are questions I hear all the time. I hope you find it informative and helpful.
When did Bitcoin come out?
October 31st 2008 (I just looked that up. It’s on Halloween for us Americans. That’s kind of scary! Pun intended.).
Am I too late to invest into such and such coin?
For the most part cryptocurrencies have only been around for a few years. The only exception is the “gold coin” Bitcoin or I like to call it the godfather coin. Even then Bitcoin and all other Alt-Coins (Alterative coins) are still relatively new.
How do you know that it only started a few of years ago? Or is there a place can I look up the cryptocurrency market?
Go to https://coinmarketcap.com you’ll see most of them didn’t start until circa 2014
What year did cryptocurrency start to exploded in value?
I would say the year of the cryptocurrency started this year. Going from under 20 Billion to top ending around 116-117 Billion in a few months.
How big do you think the crypto-verse and blockchain will be?
Well I believe that blockchain technology has so many applications. The possibilities are endless.
What is a blockchain?
A blockchain is a digital ledger that keeps transactions that are made in bitcoin and are recorded chronologically and publicly.
Is cryptocurrency the same as stocks?
No, the stock market are companies you invest in. Cryptocurrencies are digital currencies. They should be treated as a currencies, but not fiat currency.
What is fiat currency?
Fiat currency is a legal tender that was made and backed by that country’s government.
Well what happens if the whole Internet goes down, would you lose everything?
If that happened then you are talking about a global wide EMP, which usually means nukes were launched and we all be dead or dying. Also if you had a paper wallet then technically you still have those digital assets. You’ll just have to find an electronic device that can read it. I know I hear you. It’s a catch-22.
What is a paper wallet?
It is what you think it is. It is a printed out piece of paper that has a specified amount of cryptocurrency on it.
What is the difference between cold storage and hot storage?
Cold storage would equal a paper wallet or a computer that is offline.
Hot storage is a piece of hardware (smart phone, computers) that is connected to the Internet.
What coins should I invest in?
That you’ll need to do your due diligence. It is often said that Bitcoin would be the safest bet. But the potential is massive out there.
When buying a coin, do you have to buy a whole one?
No, you can buy a ½, a ¼, a 1/10, all the way to the hundredth millionth place, etc.
Extra videos to help understand block chain technology and Bitcoin/cryptocurrencies! These are the videos I’ve been recommending to my friends and family. They give a more in-depth look at the applications and how it works. The last one you can skip if you aren’t too technological.
Watch these videos in order.
What is Bitcoin?
19 Industries The Blockchain Will Disrupt
The Essence of How Bitcoin Works
How Bitcoin works under the hood
After reading all these FAQ’s and watching the videos here’s some food for thought.
The entire cryptocurrency market has been around 90-100 Billion dollars for the past couple of months. This is great since it is showing stability at that level. It only took 4 months to get around 80 Billion more market value (from 20 Billion to 100 Billion). If you look at the world GDP it says in 2014 that it was 107.5 Trillion dollars. If the cryptocurrency market can gain 1 trillion in-value, that’s x10 or 1000% more then it’s current value. That’s under 1% of the world GDP. I’ll let that sink in your mind for a little bit!
https://en.wikipedia.org/wiki/Gross_world_product
Many crappy coins have gotten x10 x100 or more in profits
Now I get to ask you the audience a question. Is it really too late to invest or begin to use cryptocurrency? Think about it!
