21/12/2017 /dev/null CryptoCurrencies: A different economy is possible? (I)

CryptoCurrencies: A different economy is possible? (I)

Cryptocoins, cryptocurrencies, BitCoin, LiteCoin, Ethereum… What the heck are they? Well, in this introduction we give you a briefing about them and where you can buy your first BitCoin.

According to Wikipedia:

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly through the use of cryptography, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies,products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

Well, for starters, let's say this in simple words, BitCoin is a digital currency used to pay in a good few e-Shops (Electronic Shops, Online Shopping) and in the Dark Web (okay, don't get excited, this goes in another article). What's so fascinating about it? Not much, only the fact that the actual exchange for 1 BitCoin to Euro is (at the time of writing this article) 14.307,00€… Yes, you read it correctly, 14.307 euro just for 1 BitCoin.

What makes BitCoin so expensive? That's easy, let's say you want to pay somebody and you don't want anybody to know about it, yep, we know you're thinking about Cash in Hand, but let's say more, you are willing to pay somebody kilometers away, not even kilometers, a few countries away, from Europe to Asia, for example and you don't want or you can't send him the money via bank transfer because of many reasons like privacy and the fact that if you're buying something in the Dark Net, it won't be legal (and you know that…).

Okay… and what it has to do with me? Maybe in simple view, nothing, if you're looking for a way for making money with Forex (Currency trading), the cryptocurrencies are a must check before deciding to go for euro/usd/cad and so on. And without forgetting about our privacy, which is a main need now days when governments don't care about the rights of the people (Net Neutrality…).

You're getting interested? Okay, let's start somewhere, get yourself a wallet! Yup, a wallet, but in the digital meaning of the word wallet. You can get a Bitcoin wallet on it's official website BitCoin and where you can buy them? CoinBase is the place to go, good fees (which you need to pay to support the miners and the pools as well as the blockchain), good availability and really quick in the process of registration, CoinBase can be considered the Wall Street of the Cryptocurrencies, maybe you don't have a wide range of options but, you'll find the most used coins on the markets in CoinBase.

Why there's a need for a digital currency?

As we said before, many people need it for selling it's products, others, to pay anonymously but mainly, we need a currency that's not attach to old times (As much gold as you have) and doesn't go thru the governments or leave traces of the likes of who's the owner of this bank account and who's the receiver. As a bonus there are many cryptocurrencies that helps with the processing power of the miners (we'll explain this in the future) to scientist projects like Disease Research and funding projects that couldn't be possible without an infrastructure like BlockChain.

We'll continue with this series in future articles, where we gonna see deeper how the BitCoin works, the components of the BlockChain and where all this craziness is leading to. See y's on the next article here, in /dev/null and never stop programming!

Santiago A.

Santiago A.


SysAdmin/Network Tech and a crazy coder. In this scene since 2002, Proud Slackware user since 2003 and in love with MacOS since ever.


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