This is the time of Hype and there’s a lot of stuff going on, there’s a lot of trends, Cryptocurrency is a huge deal and you should know about it, this is important. The Internet is blowing up right now with talks of Cryptocurrencies,news of bulk crypto mining farms and you want to join the chat and understand what everybody is talking about.

$DOGE, Bitcoin, Ethereum, Blockchain and Mining. Get ready and read on to know all about it. See, this is a bit complicated and you should really get to know about it step by step. If you want to know, you’ve got to read it all.

First, Let’s talk about Basic Money.

#1. It all started with the Barter System, this way, there was trade exchange of goods for goods. e.g. A Dog for a Horse, but then this system was not the most useful because if the other person didn’t like the trade, this exchange wouldn’t be possible.

Then came the Monetary System (and it’s been that ever since, just the mode of transaction has changed dramatically over the years, you’ll see here

#2. Then there were wars and a lot of other political stuff which I won’t say because it can be biased, anyways then there were kingdoms set up, and people started to trade with materials like gold and silver coins to assert the price of any kinds of goods.

#3. Then there were Governments set up and then Banks became a thing, when people realized they could trust the system of banking and then they could move on to using Cash, Bills or Physical Paper Money. This one Cash Bill was basically a way/proof to say you had some amount of money in your disposal. You could trade different Bills with anyone and get stuff which was equal to the value of this piece of paper. Again, This Paper had it’s value because the Government said so and the people did abide by it.

#4. Now, the stage we’re all currently at. We mostly use our phones, our Credit Cards to transact and trade. Most banks are based Online. Now with the advancement of technology and the internet as a whole, we don’t see cash transactions much nowadays. e.g When you pay $10 for any stuff, online, your bank records the transaction and updates your account with a decrease of $10 on a Spreadsheet or a Bank Log and the bank of the Seller updates their bank account with an increase of $10. It’s all about logs and data in today’s era.

#5. The Future- See, the future is very uncertain and we can only guess if this step will prevail or not. Although the next step is Crypto for Sure. More about Crypto ahead 

Now about Crypto

About Crypto, It’s 100% Virtual, and there’s no Paper Involved. It’s basically just the transfer of digital Assets*money*.

The Core Concept is Exactly the Same, it’s just almost the same way you use net-banking but a million times different. It’s also just the same spreadsheets and logs, but there isn’t any banks involved. Instead of banks keeping their separate records, there is one central log where every transaction that happens is stored in data blocks called ledgers.

Reason for the Hype and Crypto Mining

What’s the reason for all this hype? Crypto is decentralized, which means that, there isn’t just that one ledger, there are hundreds of other ledgers all around the globe, this is the main primary reason of the hype for cryptocurrency.

It’s just that all this data is stored on the web and that all the different computers that are connected to this network which has to be updated every time a new transaction is made, this is called Crypto Mining, when you set up a computer to dedicate all it’s resources to updating all these ledgers, you get a certain sum of fees which is very profitable for some, but it is and will be causing problems in both the short and long term. See, you can’t just put all the cores of a single CPU all into doing that, GPU’s are more accessible and have better computing power for handling all that data and bulk logs.

So, people buy graphics cards in bulk and then put them into huge systems to crunch all that data and earn them revenue in the long term. This in-turn has caused the massive global silicone shortage, which didn’t allow for many competitive e-sporting events and also left many new PC builders scratching their heads searching for Graphics Cards and more. These Crypto Miners set up Mining Farms, these Graphics Cards or mining farms in bulk suck up so much electrical power, it causes a lot of cities and villages to have power cuts for weeks or months at a time.

Ledgers and Logs

Whenever someone tries to to tamper with the amount of a bank account, it can be changed and the literal life of that account holder can be flipped upside down, either in a good or bad way.

So, back to the Crypto Ledgers, the reason there are so many copies of this ledger is that the transaction has to be verified by every single ledger and logs in the network, if the data is true, for example, if you pay someone with any crypto, what happens is that the system you’re paying verifies all the records, trying to check if you have the amount you said you’d pay, and then gives a prompt to the entire network to update your current balance, this way if a hacker is trying to get into your account they’ll have to update the data and balance with nearly a million mining devices scattered all around the world all one-by-one. This makes it literally impossible to break into your account and steal, too.

Perks of Crypto

Now, you know the safety and reliability of Crypto, but it isn’t just the security, there are two other really neat perks of Crypto, that caused alot of people to consider it as a viable solution.

Firstly, Crypto is useful for people living in countries with a decent internet connection and the country’s banks aren’t reliable enough, with a lot of paperwork and documentation, they can just trade with any Crypto given a good internet connection and a powerful enough device to process the data.

Secondly, Like I said before, with Crypto there aren’t any banks and there’s just one unified ledger, and this unified ledger is scattered all around the world. This means that you can transfer money overseas and there’s no waiting time involved, it’s just like normal Venmo Transactions, but unlike banks which take nearly 3-4 days to process and transfer the money and also demand extra charges, there’s no exchange rates and interest rates it’s a lot more useful and efficient, for people transacting atleast 

Blockchain and more Security

Now people think, Blockchain is Bitcoin, Blockchain is Crypto, NO. Blockchain is not Crypto. Blockchain is just a secure type of Leger, you know, the ones you learnt previously? It’s a way of holding together all the hundreds of ledgers around the world, its a way of organizing all the data into blocks! So when you pay someone with Crypto, it’s recorded as a block.

A Block normally contains a sender Unique ID and a Reciever ID, (There’s a myth surrounding Crypto, that you stay totally Anonymous while transacting, it’s Busted) it also contains the transaction hash and the previous hash for managing it and tying the data block in a sequence like a string !

So, when the amount is changed, the hash also changes, so when the amount is changed and the hash is changed, all the blocks on the sequence become invalid, finally resulting in the data sequence crashing, so in order for a hacker to change and tamper your transaction, they’d have to change all the blocks after it in nearly more than a million computers all at once, which is impossible so here’s another safety feature 

Bad Stuff.

#1. Crypto is Volatile, that means that nobody knows what they should be worth, that’s why, you see that prices of a Cryptocurrency, let’s say Bitcoin skyrocket up when there’s a nice and polished article *like this one* praising about Bitcoin, it’s prices go up, but when the Technoking*Elon Musk* says that Bitcoin is bad, people should use Dogecoin, there’s a massive dip in Bitcoin Prices .

#2. Not accepted everywhere, another problem with Cryptos is that Cryptos aren’t accepted everywhere, previously, Tesla and BurgerKing accepted Bitcoin as a means of payment, but they backed out of it after realizing the Volatility.

#3. Mining is Bad. Just like I said before, mining requires a lot of graphics cards in bulk and then people put them into huge systems to crunch all that data and earn them revenue in the long term. This in-turn has caused the massive global silicone shortage and these Graphics Cards or mining farms in bulk suck up so much electrical power, it causes a lot of cities and villages to have power cuts for weeks or months at a time.

#4. Criminals. Because this currency isn’t regulated at all, this currency is virtually un-traceable, but so is cash, the nature of cash is also that it’s untraceable. But, Crypto isn’t currently being used for Criminal activities, according to a lot of statistics.

Investing

You might have heard about cryptocurrency, investing, you see it on twitter everyday ,You’ve seen Elon Musk tweets, if you haven’t seen his tweets, you might have had seen articles about his tweets on your news feed.

You’ve seen how his tweets affect the investment curve and how the stocks go up and down. So how do people invest in crypto? *This isn’t any kind of Financial Advice*

So basically, when you invest in crypto, you’re just exchange, your currency, let’s say Dollars or Rupees, currently *at the time of production* if you did invest in bitcoin for 1000$ you’d get 0.031 BTC, and for 1000rs, you’d get 0.00043. When the crypto stocks go up and down,E.G if it dipped really really low, which it never will, you’d get maybe 1 BTC for $1 and when it went high, you’d get $32082.15 from 1BTC! Remember, Bitcoin and other Cryptos are just like normal Country Currencies, but still Volatile.

People who invest in Cryptos, are actually hoping that Cryptos will be the next big thing, and those Crypto’s will shoot up in value, after which they’d either be able to spend it or convert it back to their native currency, to get a lot more back then what they originally invested in it. If you didn’t understand yet, these Cryptos are actually not much different then the Las Vegas Casino Gambles, you place your bet at some crypto, you either win, or you lose. As simple as that.

If you’re really into investing, I’d say, invest in normal stonks. That’s more stable and could help you in the long term. AGAIN, THIS ISN’T FINANCIAL ADVICE.