Cryptocurrency, a concept which was first invented by Satoshi Nakamoto in 2008 in his research publication, where his main purpose was to change the behavior of transaction people do all around the world. He imposes to have a digital currency where data (money) is transferred between peer to peer in an encrypted form. Till this date, there are almost 1600 cryptocurrencies which are working on different platforms like Litecoin, Ethereum, and Ripple. The most famous is Bitcoin which was launched in 2009 at a price of $0.08. In 2017, its price skyrocketed till $19000. Till this date, its price is closed at $7300. Nakamoto invented 21 million bitcoins in totality and only 4.2 million bitcoins are left to be mined.
What is the hype regarding the Blockchain technology?
This invention was very difficult for the people to understand, that how does cryptocurrency work?. The backbone of cryptocurrency is known as the Blockchain technology. Since in tradition transaction, we have a trustable entity known as the "Bank" between sender and the receiver, in cryptocurrency, there is no bank. People who are transacting with each other they have a digital ledger where they write each and every single transaction going on in that medium. For example, Alex sold 2 bitcoins to John, this information will be floated in cryptocurrency ecosystem where every single one will write 2 bitcoins are being transferred to John and they will maintain that ledger. Again, there is no Bank involved, so how to make sure there is no fake transaction. Some people might write 3 BC or 1 BC, here comes the part of the blockchain technology. We will see the common transaction written in everyone’s ledger and through these common transactions, we will create a chain. The longer the chain the most trustable it is. This will tell newcomers or other investors that which one is the legitimate chain. Everyone in the ecosystem has a wallet which contains two keys; a private key and a public key.
How does the blockchain technology work?
But creating blockchain is not an easy task. You need special expert people with the fastest computers to create a trustable chain. This concept is known as cryptocurrency mining. The blockchain is based on an algorithmic software known as SHA 256, where the miner will have to solve a query with a probability of 256 outcomes. The fastest your computer is, the easier for you to mine. But in return what will the miner get in return.? Once they have solved and build a trustable blockchain, some bitcoins or any other cryptocurrency will be created from nowhere and transfer it to their digital wallets. So miners are basically providing services to build the blockchain.
Usage of Cryptocurrency?
Cryptocurrency was launched so that people can do illegal transaction off the radar from the federal government. People usually transact in dark webs where you want to hire an assassin or do drug dealing. From this concept, it has become a Fad (short trend) where people bought it for the sake of fashion and then it became a digital reality. The more people buy, the higher the price will go. Corrupt politicians and non-tax payers top management converted their black money into cryptocurrency. There is no money trail or tax to pay for it. No earning records so investigating authorities have no trail to follow.
Why you should not invest a dime in a Cryptocurrency?
Now some of the reasons why you should not invest in any cryptocurrency. The prices are not being regulated by any authorized entity, that means its prices are fluctuating without any reason. You might face a huge amount of risk associated with your investment. Cryptocurrency is neither a commodity or a currency, again, you cannot touch it or spend it anywhere in the real world. Some countries like Pakistan has started to ban this digital currency because of no money trail. Most people are investing in Bitcoin just out of fashion, they don’t understand the real deal in it and how does it work.
I would like to explain more 1 concept here as discussed above, which is Customer Persona. Customer personas representing your prospects and consumers are widely-used in advertising, sales, web and software design, and in communicating with shareholders. With customer persona, you can understand different sets or groups of consumers. You get to know where a particular group lives, their age bracket, and maybe some of their usual purchasing behavior. More here: What is a Customer Persona and How to Implement it in Your PPC Campaigns?
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