By now, everyone at least knows about cryptocurrency. Billed by some as the currency of the future, many of the top options have gained attention over the last few years.
I’m personally no expert, but I recently chatted with someone who is. Ali Habib Mayar, CEO of Platinum Rapid Funding, has an extensive history researching, investing in and using cryptocurrency. Many of his customers also use it consistently.
He was kind enough to help explain the mechanics of cryptocurrency to the masses. He truly believes in the future of cryptocurrency, so he believes everyone should know the basics before diving in.
What is cryptocurrency?
For years, countries around the world have relied on their centralized currency. Cryptocurrency attempts to disrupt the norm with a decentralized, 100% digital currency that is transferred between peers.
The advantage of this type of currency boils down to people feeling less restricted, since there is no middle man (such as a bank). There is a digital public ledger that tracks all the transactions, and every transaction is fully encrypted using cryptography.
How does cryptocurrency have value?
Many people are exactly sure how cryptocurrency has value. It all comes from the mining process, which is also referred to as a proof of work system.
Mining cryptocurrency is the process of confirming every single transaction before adding it to the public ledger. A miner has to solve something very similar to a mathematical puzzle. It varies and difficulty, depending on how easy or hard the last two weeks were.
How much does a person need to know before using a cryptocurrency?
It might seem foreign and difficult for a lot of people first learning about cryptocurrency, but it is actually very straightforward. It’s very similar to using paying methods such as a debit card, PayPal, Venmo and more.
Before actually investing in cryptocurrency, it’s recommended to do a bit more research. This is just to have a better understanding of the best times to buy and sell.
What’s the future outlook of Cryptocurrency?
This is the one question that no one truly knows the answer to. There are a lot of people in the industry who feel like cryptocurrency is, without question, the future of currency around the world. It might take a while for the evolution to fully take over, but it’s trending in the right direction at least.
Others are worried it never has the chance to be anything more than an alternative solution. There are a lot of different cryptocurrencies (Bitcoin being the most popular), but there is a chance none of them are every fully accepted by the masses.
People have asked for my personal thoughts, and I’m a believer in cryptocurrency. I still think there is some growing up that is needed, and it is a bit too cluttered with so many cryptocurrency options, but the best of the best will rise to the top and be a major player globally for all.