Let’s address the elephant in the room: cryptocurrency and blockchain technology is new and unfamiliar to most. Several people invested in cryptocurrency without knowing much about the technology that is supporting the various crypto projects that are going on in the space. Knowing this, I began to research and create content, Crypto Current, to educate myself and inform others so that they could begin to make more educated investment decisions in cryptocurrency.
Today I want to discuss why making small investments into the cryptocurrency market can provide a new potential revenue stream for you. The article will also expose some of the various ways people can make money in cryptocurrency like mining, content creation, and buying/trading different coins.
What is cryptocurrency?
Cryptocurrency is a digital or virtual currency that is built on blockchain. It was created in 2008 by an anonymous developer that goes by the name Satoshi Nakmoto. The first cryptocurrency, bitcoin, was created as an electronic system based on mathematical proof. The concept was made to decentralize currency exchanges electronically in an immutable and secure way.
Bitcoin is different from traditional currencies in the following ways:
- Divisibility – A satoshi is one hundred millionth of a bitcoin (0.00000001)
- Limited Supply- finite supply (21 million bitcoins)
- Immutability – transactions cannot be reversed
- Decentralization – no central authority
- Pseudonymity – bitcoin users are semi-anonymous because of no central authority
What is blockchain?
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors Blockchain Revolution (2016). The blockchain network lives in a state of consensus, the network reconciles every transaction that happens in ten-minute intervals. Each group of these transactions is referred to as a “block”. A network of computing “nodes” make up the blockchain.
How is cryptocurrency being used with blockchain?
There are multiple use cases for cryptocurrency on blockchain. The following are just a few:
- Ethereum Request for Comment: Non-Fungible Token Standard # 721. Better known as ERC-721 tokens, or just Non-Fungible Tokens (NFTs).
- Mining – The bitcoin blockchain is secured by miners who verify transactions between parties and are rewarded newly generated bitcoins as a reward for doing so.
- Smart Contracts – contracts that are executed automatically without the help of a third party.
Why is this an investment opportunity?
Apple stock was originally $22 when it first came out. Bitcoin was worth 6 cents. If you had invested $20 in bitcoin when it was worth 6 cents, when bitcoin got up to $17,000 your investment would have been worth ~$28 million. Bitcoin is currently worth ~$4,000 right now and has just went through an extreme bear market (market prices went down) in 2018. Analysts are saying that cryptocurrency is on track to rebound in 2019, which makes now a great time to look into this market.
You can get started today by creating a Coinbase account. If you have a Robinhood account, you can purchase some cryptocurrency stocks as well. Make sure you do your homework on cryptocurrency projects before you invest. Knowledge is power, so empower yourself with research before you make any monetary investments.
If you have any questions or want to get started in investing in crypto, please contact me here.