How much do you know about Cryptocurrency?
We are experiencing some unusual times in the world right now as we embark on the new year, 2021. The entire planet is dealing with the pandemic called Covid-19, there is political unrest festering around the world, and each country's economy is a little shaky. The scientists and doctors are leading us through the health issues related to the Pandemic, the governments around the world are managing their political unrest as they see fit, and, in my opinion, our personal financial health is really up to us. Stimulus packages and cash infusion into our economies may be helpful, but what do we do on a personal level. Is the stock market going to hold up through this? What about the banks and financial institutions? Gold and Silver sometimes are used to diversify, are they a good place your money.
One option that seems to be gaining a lot of momentum is cryptocurrency. But what exactly is it? Here is a very brief explanation:
'A cryptocurrency is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information. Cryptocurrency is defined by Investopedia.com as a decentralized “digital or virtual currency that uses cryptography for security” making it difficult to counterfeit'
Bitcoin and Ethereum are the 2 top cryptocurrencies. And, there are definite differences in these two cryptos. Although they're the two biggest cryptocurrencies by market capitalization, similarities more or less end there. Bitcoin and Ethereum are totally different animals, developed for different reasons and with different internal dynamics.
Bitcoin is a consensus network that provides a new payment system and totally digital money. It is the first decentralized peer-to-peer payment network that is operated by its users and has no central authority or middlemen (that's refreshing). Actually, how people think about Bitcoin is that they consider it pretty much like cash money, using it for the Internet.
Ethereum is the largest and most well-established, open-ended decentralized software platform. Ethereum enables the new smart contracts and decentralized applications (dapps) to be built and run without any downtime, fraud, control or interference from a third party.
It is expected to be used for more real-world applications that will be powered by the Ethereum blockchain, and there will likely be an increasing demand for Ether to make it run. This could keep sending its value higher -- its value was up about 350% in 2020.
Always do your research when considering buying Cryptocurrency. Also, crypto can be a risky investment and can be volatile. For more information on an easy way to get started and learn more click here . On the menu, click SUPPORT for FAQs!
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