Everything you need to know about Cryptocurrency!

Everything you need to know about Cryptocurrency in 10 minutes ONLY! I will start with why cryptocurrency has been invented and how it works, then gonna explain, why some of these virtual currencies are more expensive than the real physical ones, after that, I will reply to the most important question “is bitcoin safe?”, and I will finish the video with the dark side of cryptocurrency.

Introduction

Wondering what cryptocurrency is?

Bitcoin, Ethereum, Litecoin, Dogecoin, NFTs are all examples of “Cryptocurrency”. I know you have a lot of questions; in this video, you will understand “everything” about this topic.

I will start with why cryptocurrency has been invented and how it works, then gonna explain, why some of these virtual currencies are more expensive than the real physical ones, after that, I will reply to the most important question “is bitcoin safe?”, and I will finish the video with the dark side of cryptocurrency. If you are interested in this topic, make sure you visit us every week for more content or check us on YouTube. Soon I will do a separate video about how to buy, sell, and mine bitcoin step by step. So let’s get started.

Getting into Cryptocurrency

Getting into cryptocurrency, to understand why cryptocurrency has been created, we have to understand why the currency has been created. The history of money is divided into 3 generations and with cryptocurrency, we are starting to talk about a fourth one.

1^st generation: Exchange.

In the past, people used to buy things through a system called “Exchange and trade”. For instance, if I have a chicken and you have a cow, you can exchange cow’s milk for eggs, “easy”. But this system had a very big issue, what if you want eggs but I don’t want milk, maybe I want a cat and you don’t have it, then this exchange can’t happen.

This is why coins have been created in the 2nd generation.

People started to put their exchange items with a person who is normally a lender, this lender takes their offered product and gives them coins or a paper saying that this person has an item worth x amount of money in my storage. So the person can go and exchange the paper for whatever he needs from another person. And the other person can take the paper and exchange it for anything again and again. “BUT”, what if a person exchanged a chicken for 5 coins from a lender, maybe another lender will quote the chicken for 2 coins. The only possible way to get the exact pricing back is from the same lender, this system made buying and selling very limited especially with travellers. The exchange system caused another huge problem which is, unofficial finance system.

This led us to the 3rd generation, Official Finance System.

This financial generation started with international banks around the world that are connected through one centralized finance system. For example, 1 Australian dollar has the same value all around the world, so if in Australia 3euro = 4.5$ if you go to Japan you will find that 3euro also = to 4.5$. The way transaction works nowadays, is that the system will write a note for every transaction made, for instance when I make a payment to buy a product online, the bank will write on the system that fady paid 20$ to amazon, so 20$ will be deducted from my account and added to amazon’s one. “BUT” this is causing issues nowadays especially with advanced hackers and scammers. What if a hacker could hack through the system and write that fady paid 10 thousand dollars to x account. The hacker can take my money just because a bank doesn’t have a good security system.

This is why cryptocurrency has been created.

Cryptocurrency has been created as a matter of a virtual existence, “ONLY”. It means there’s no central bank to write notes about transactions, instead, there’s a very complex security system impossible to trick called blockchain, briefly, blockchain is a virtual chain made from millions of computers around the world, and every one of these computers should approve on a transaction, and if one computer declined, the transaction will be rejected. The way that these computers communicate is through a sequence of numbers, and if a hacker wants to change any word or number in a transaction, he should change it on the other million computers too. It’s so complicated so I’m gonna do a separate video/article about blockchain soon, make sure you subscribe and turn the notification on to stay up to date on every news.

why some of these virtual currencies are more expensive than the real physical ones

Let take bitcoin as an example, bitcoin is a virtual currency. You can’t hold a bitcoin, the only existence of it, is in the systems, if you lose your crypto wallet account and password, there’s no way you get them back. Since it’s a virtual currency and has no existence, then its value is what people assume it should be not what actually is. Let’s take real money as an example, every currency, value the strength of its country’s economy. For instance, Australia has a very strong currency because of its economy, while Venezuela and Lebanon currencies are the worst because of their weak economy. Now let’s go back to cryptocurrency, why bitcoin has a high value and who assigned this value. The answers now should be easy, people themselves assigned its value, keeping in mind that the number of bitcoins ever created is 21 million and with the start of 2022 we will have only 2.134 million bitcoins left, this will make the competition higher, and the price will increase because of this competition.

is bitcoin safe?

Before I tell you the dark side of cryptocurrency, let me reply to an important question. “is bitcoin safe?”
Cryptocurrency is a digital currency in which encryption and checking techniques like blockchain are used to verify the transfer of funds. Also, privacy and anonymity are other pros because it’s difficult to track bitcoin transactions back to an individual. That’s why we see many criminals ask for bitcoin payments because it’s almost impossible to track. So, “Bitcoin is safe”, but buying bitcoin is not. This topic is full of scammers, and if you don’t know much about this topic, it’s easy to get scammed. More videos/articles about this topic will be released soon, so stay tuned.

Now let’s talk about the Dark Side of cryptocurrency. One, “volatility in price

Everything in this world has advantages and disadvantages, and cryptocurrency has 2 big problems. One, “volatility in price”. The cryptocurrency price changes every second due to unknown and unpredictable actions. Remember a few months ago, Elon Musk a very famous businessman tweeted that his companies will start accepting bitcoin. The bitcoin value went to the roof, but after a few weeks the same guy tweeted again that he won’t accept bitcoin anymore, the bitcoin value dropped the same as before, so basically, there’s nothing can assure you that you gonna win with cryptocurrency.

Two, “end of existence”

Bitcoin was created by an unknown person, and according to many sources, one day we gonna wake up without bitcoin existence. It’s like you found a car you like and then you paid for a random person on the street its price, same for bitcoin you’re paying to companies that have bitcoins, these companies didn’t create the bitcoin and they got it from unknown sources like mining, because the creator is unknown. The concept is not quite the same, but this is the easiest way to explain this serious problem. Even if we lived forever with cryptocurrency, if no companies allowed exchanging cryptocurrency, then where can we spend them? Their price will drop dramatically, and no one will want to have them since there is no use for them. Nowadays you can’t do anything with these virtual currencies, even the companies that announced that they gonna accept it, later rejected the idea.

Conclusion

In the end, You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust, and, I do think Bitcoin is the first encrypted digital money that has the potential to do something like changing the world, but at the same time, I have a feeling that one day I’m gonna wake up with 0 cryptocurrencies in my crypto wallet. If you are asking, yes, I do have cryptocurrency for myself, and I’m going to teach you how to buy, sell and mine these digital currencies in another video/article. Hope this video was informative to you. This is Fady, I’m the CyberMate, thanks for reading and catch you in the next article.

This article is written by Fady Azzi