There was a cryptocurrency mania a while ago. At least one person that’s around you must have told you about Bitcoin or some other coin. This could be your friends, family, or a random person on the street. A lot of people made a lot of money by trading virtual coins such as Bitcoin.
The truth is that most of these people just got lucky. When the market is going up, you could roll a dice and put money on the number that pops up, and you’ll be making hundreds of dollars by investing into some coin. Now that the market crashed, all those people that boasted about making millions are quiet. Click here to read more.
The reason is that they followed a trend, and the trend is on hold. Most people don’t know a lot about crypto, even though they claim they’re experts. That’s going to change because we’ll take you through a step-by-step introduction as we explain some of the technical jargon.
We’ll include a couple of examples, and everything will be crystal clear. Let’s get into it.
What are cryptocurrencies, and how do they work?
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You’ve heard about money, right? Everyone knows what money is. It’s the paper that we give to the cashier at the register when we want to buy something. It’s the reason we work at a job. It’s the thing that grandma slips in your hand when you visit her house.
Well, there are a couple of flaws that money has. The first one is that all the money in the world is now centralized. What does that mean? This means that a few institutions control how much money gets printed every day. This means that you can create it out of thin air.
If these institutions organize together, they can artificially boost the economy. That’s not going to work in the long run. Everyone saw what happened back in 2008 when banks made a mistake.
Who’s to say they won’t make the same kind of mistake again? Follow this link for more info https://markets.businessinsider.com/currencies/news/crypto-ethereum-defi-yield-farming-mark-cuban-iron-titan-2021-07.
For that reason, everyone needs a backup plan. Older investors invested in gold and other precious metals for this reason. They wanted something to serve as a hedge against the dollar and other currencies. Now, society has progressed, and technology is outstanding.
Satoshi Nakamoto created a form of artificial gold that’s known as Bitcoin. It’s capped at 21 million coins, and no more will be produced after that. It’s one of the best hedges against inflation on the planet. If you’ve paid attention to the market, every time a crisis happens, the value of gold increases dramatically.
During times of economic security, the prices get lower. The same thing happens with Bitcoin. It’s a way to send money to someone without a centralized institution interfering. Of course, Bitcoin is not perfect too.
That’s why so many other altcoins were created, from which Ethereum is most famous. The goal of each altcoin is to improve upon the original Bitcoin idea. One of those projects is PKT Cash, and it works in a similar manner.
What’s PKT Cash?
PKT Cash is an alternative to using the internet. We’re all paying internet service providers to use the web. In return, they give us a limited amount of bandwidth. There’s an issue here. First of all, companies can get together and increase the prices of using the net.
If one company does it, another one will follow. Everyone wants to make more profits. That’s where PKTpal comes in. It’s a cryptocurrency that pays you for connecting and using the internet. However, it can’t work just by itself.
In order to earn, you need to have a node that can get plugged in in your office at work or at home. This works as a reward to all the people participating in it.
Plus, when this project gets fully realized, you’ll be able to pay your bills with the money you made. It’s a win-win situation.
What’s a blockchain?
The easiest way to explain a blockchain is to think of a ledger. Banks use ledgers to keep track of all of the people that are sending and receiving money. In essence, it’s a way to record all of the transactions that occur. The best thing about blockchain is that it’s completely public.
If you go into a bank and ask to see all of the people that made a transaction on that day, they wouldn’t let you. They’re a central body, and you have to trust them that everything was completed successfully and that no mistakes were made.
On the other hand, when it comes to the blockchain, every transaction gets encrypted and recorded. This means that no one will know who sent coins and who received them. The only thing that will be known is that person A sent money to person B.
It’s the foundation upon all virtual currencies work. It’s much better than transmitting money through the existing system. Another benefit is the elimination of the need for an intermediary. You can just send money to your friend, and they will receive it without anyone else knowing about it.
No one will supervise the transactions because other computers will be validating them. Plus, the fees that are high right now will decrease in the future, making it a much better option. Finally, the transaction times will be much faster.
Keep in mind that banks start working at nine and they close at 5. This means that you can’t go in and send money to someone else after that time. You’ll have to use an online banking platform. Plus, most banks don’t work on the weekends.
That adds two extra days of delay, especially when it comes to international payments. When it comes to using the blockchain, you can send coins from one place in the world to another in less than a couple of minutes.
These times will be getting faster and faster, and eventually will become instant. The future is looking bright for the world of crypto.