Welcome to Life Hacks Club and we are happy to announce that we are going to focus on the Cryptocurrency for a very long time.
Why? Because investing money in Cryptocurrency is a positive hack to make money legally with better returns if you educate yourself…
Our goal is to keep sharing here on this blog everything we do related to Crypto Currencies.
Before we go any further, we need to answer few basic questions about the Cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a digital asset used as a medium of exchange in place of paper currency. It is also known as virtual currency. Cryptocurrencies are created and stored electronically in the blockchain using encryption techniques to control the creation of monetary units and to verify the transfer of funds.
OK here is the Wikipedia definition for you…
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are a type of digital currencies, alternative currencies and virtual currencies. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through a blockchain, which is a public transaction database, functioning as a distributed ledger.
If you are looking for the simplification of all the jargon, we have done a course just for you.
In a simpler language, it is digital cash created from a code which can be taken anywhere across the globe with no strings attached. Click here to Check it out if you want to explore how to make money with this future trend!
Some of you may have heard about the Bitcoin and not sure about it, keep reading this article…
What is a Bitcoin?
Bitcoin was first created in 2009 by a person named Satoshi Nakamoto and nobody know if this is the name of one person or a group which created this first Cryptocurrency. In 2008, there was a paper published titled “A Peer-to-Peer Electronic Cash System” by Satoshi. One of the single most important parts of this invention was that he found a way to build a decentralized digital cash system.
Back to the same question, what are Crypto currencies really?
If you simplify everything, you will see that banking is nothing but maintaining the database of entries, verifying your identity so that your money is safe and ensuring that all the entries are correct.
Now let’s look at the cryptocurrencies or virtual currencies. Imagine if you could maintain your digital cash on a network which is accepted by others as a means to exchange and now you can use this digital cash (let’s give a name as Bitcoin) to buy other goods and services. Like other paper money, you can also invest this into buying Cryptocurrency investments. In order to make this whole system foolproof, it is important that every single entry in the database is managed properly so that there is no double entry in the database.
This whole challenge of digital cash was solved by Satoshi by creating the first Cryptocurrency named Bitcoin where all the transactions are verified entry in some kind of public database of accounts, balances, and transactions.
In order to make the Cryptocurrency such as Bitcoin or altcoins trustworthy, we need to have a system like banks where we can keep our money safe. This is achieved by ensuring each transaction has the following characteristics:
- All Crypto transactions are irreversible.
- All transactions are pseudonymous so that digital cash like Bitcoin can be transferred across the Network based on the digital addresses only.
- These transactions are extremely fast because it is done across the network in just few minutes.
- Due to public key and private key cryptographic system, transactions are very safe.
- In order to make this system functioning 24 x 7, this is done using a decentralized system which means there is no gatekeeper.
"Bitcoin is digital cash created from a code which can be taken anywhere across the globe with no strings attached"
In the next article, we will cover the basics of Blockchain technology.