“Cryptography” – or “cryptocurrency” – is a type of software system that provides transactional functionality to users over the Internet. The most important feature of the system is decentralization Nature – usually provided by blockchain database system.
Blockchain and “cryptocurrencies” have become major elements of the global zeitgeist recently; Usually as a result of the skyrocketing “price” of Bitcoin. This has led to millions of people participating in the market, with many “Bitcoin exchanges” experiencing massive infrastructure stress as demand rises.
The most important point to realize about ‘encryption’ is that although it actually serves a purpose (online cross-border transactions), it does not provide any other financial benefit. In other words, its “intrinsic value” is severely limited by the ability to deal with other people; Not in value storage/publishing (which is what most people see).
The most important thing to realize is that “Bitcoin” and the like Payment Networks – Not “coins”. This will be covered in more depth in a second; The most important thing to realize is that “getting rich” with BTC does not mean giving people any better economic position – it is simply the process of being able to buy “coin” at a low price and sell it at a higher price.
To that end, when looking at ‘encoding’, you first need to understand how it actually works, and where its ‘value’ really lies…
Decentralized payment networks…
As mentioned earlier, the main thing to remember about “Crypto” is that it is mostly a file decentralized payment network. Think of Visa/Mastercard without the central processing system.
This is important because it highlights the real reason why people are really starting to look deeper into the Bitcoin offering; It gives you the ability to send/receive money from anyone around the world, as long as they have your Bitcoin wallet address.
The reason why this attributes the “price” to the various “coins” is due to the misconception that Bitcoin will somehow give you the ability to make money by virtue of being a “crypto” asset. no.
The Just The way people have been making money with bitcoin is due to the “rise” in its price – buying the “coins” at a low price, and selling them at a much higher price. While it worked well for a lot of people, it was actually based on the “bigger fool theory” – basically stating that if you could “sell” coins, it would be to a “greater fool than you”.
This means that if you’re looking to get involved in the “cryptocurrency” space today, you’re basically looking to buy any of the cheap (or “alt”) “coins” (or even inexpensive ones), and ride them up in price until you sell them later. Since none of the “coins” are backed by real assets, there is no way to estimate when/if/how this will work.
future growth
For all intents and purposes, “Bitcoin” is a spent force.
The epic recovery in December 2017 signaled mass adoption, and while its price will likely continue to grow into the $20,000+ range, buying one of the coins today would essentially be a huge gamble that will happen.
Smart money is already looking at the majority of “alt” coins (Ethereum / Ripple, etc.) that have a relatively small price tag, but are constantly increasing in price and adoption. The main thing to look at in the modern “crypto” space is the way the different “platform” systems are actually used.
This is a fast-paced “tech” space. Ethereum & Ripple looks like the next “Bitcoin” – focusing on how they can provide users with the ability to virtually use “Decentralized Applications” (DApps) on top of their core networks to get job functions.
This means that if you are looking for the next level of ‘crypto’ growth, it is sure to come from the different platforms that you can learn about out there.