A Intro Crypto Basics. Blockchain, Bitcoin and other Crypto-currencies

Crypto Basics. Blockchain, Bitcoin and other crypto-currencies.

It was in Singapore when I first heard about bitcoin back in 2011 from an online article that I came across saying something about this coin reaching parity with the US Dollar. Like most people, I didn’t pay attention. I had zero knowledge and did not even bother researching about it. Probably because I was having fun trading the Philippine stock market back then and experimenting with the Singapore market at the same time. 

I chose to ignore every milestone until last year when Bitcoin broke $10,000 for the first time. I decided to read up about it and of course, Blockchain, which is Bitcoin and other crypto-currencies underlying technology.

So, what is a crypto-currency?

Unlike the physical paper money that we are used to (also referred to as fiat money), crypto-currency is purely digital. They do not physically exist. There is no actual coin to pick up and put into your pocket. Currently, there are online businesses that accept crypto-currencies in exchange for their products or services. More and more brick and mortar businesses accept crypto-currency payment as well.

Photo from 99bitcoins.com

There are around 1,658 different crypto-currencies as of today and Bitcoin is the king since everything still revolves around it. It is still the most widely available at this point. Here in the Philippines, you can buy Bitcoin using your Peso using any of the top platforms today such as coins.ph and buybitcoins.ph.

Bitcoin is the very first decentralized digital currency. Decentralized meaning unlike traditional money, there is no central bank or any authority that controls it. Decentralization has been made effectively possible because of the Blockchain Technology.

Blockchain.

Blockhain, like what I have earlier stated, is Bitcoin and all other crypto-currencies’ underlying Technology. It is a digital ledger that is stored in multiple computers around the world. Every transaction that involves buying, selling or paying using a crypto-currency is processed by one of these computers and stores them in the ledger. It is definitely a lot more complicated than that in the background that but that is the general idea on how it works.

So, what’s in it for you and me?

Opportunity. For sure risks are high at this point since crypto-currencies and the Blockchain technology in general are still in infancy stage but it is not a bad idea to get involved as early as now. Similar to what happened to the dot com era, early adopters that took risks were handsomely rewarded. Take note that this is in no way a financial advise but if you believe that this technology could really disrupt our current financial system, then it would be wise to do more research and choose a few coins to buy and keep for a few years. However, if you are the trader type and already have experience trading the stock market or forex, you may also do so using exchanges such as Binance or Bittrex.

For more information about buying Bitcoin, please click here.

*I am no expert nor am I a developer. With the dynamic innovation and there is plenty to figure out which among the thousands of crypto-currencies to best invest in or trade.