the new economy👽👾🤖👁‍🗨👁‍🗨

economics is boring this is a lie we've
been told all our lives but accept it or
not our life depends on it
war poverty revolution they all hinge on
economics which itself rests on one key
concept
money the ultimate catalyst for the
worst and the best of human endeavor
like it or not money defines our social
status it also compromises our morals
sometimes
some people spend their lives chasing
these rectangular pieces of paper
some are willing to fight even kill for
it
but are we headed towards the end of
money as we know it
will we have to burn our rupees dollars
and euros
transform every single penny we have
into digital binaries
or should i say to cryptocurrency
is it really the new goal the future of
money or is it gambling
a recipe for financial disaster if these
are questions you've been asking
yourselves
i have a story to share hello and
welcome to gravitas plus i'm
what the internet did for information
digital currency is doing for money
it is revolutionizing transactions and
eliminating banking
not a week goes by when cryptocurrencies
do not dominate the news there are
record-breaking price surges every other
day
your colleagues won't stop talking about
it your friends want you to invest
what do you do you weigh the pros and
cons
understand where you're putting your
money and that's where the problem lies
most of us do not understand money and
it's handling it's a life skill
we were not taught in school beyond the
basic computing
now if money changes form the first
thing you try to do is understand it
and that's what we'll do today and if
you're worried that we are going to get
too technical do not
it's all plain english let's start with
understanding
three basic concepts bitcoin blockchain
and cryptocurrency what do they mean
here are some quick definitions
first bitcoin it is the name of the best
known cryptocurrency
like the euro is the name of one type of
currency bitcoin
is digital and decentralized it exists
electronically
it's a computer code only and i'll
explain in a bit
for now the second definition
cryptocurrency it is a medium of
exchange for bitcoin
just as notes and coins are for rupees
and dollars
crypto means data encryption it
basically
ensures the security of transactions now
you may have heard about
your messages being encrypted it means
they're secure
it's the same for crypto it's encrypted
data
but unlike debit and credit cards
cryptocurrency has no physical
counterpart
it's the only form it exists in the
third definition is blockchain
it is the technology that enables the
existence of cryptocurrencies
think of it like a computer file that
stores data
but this is a file across a vast network
of computers
and it's not exclusive to bitcoin and
crypto blockchain has many many uses
this is just one of them so simply put
this is everything we don't understand
about money combined with everything we
don't understand about technology
now don't lose your head if you do not
get it because most people don't
and surveys have shown this only one out
of ten people understand how
cryptocurrencies work
and one in three cryptocurrency
investors themselves
know little to nothing about it take
bitcoin for instance
no one even knows who created it it has
been in circulation since 2009
but the identity of its creator or
creators
remains a mystery to this day over the
years many people have claimed to be
or have been called nakamoto but there's
still no clarity
whether it's one person or a group of
people no one really knows
that i have nothing to do with bitcoin
nothing to do with developing
i was just an engineer doing something
else
what nakamoto did though was solve a
potential flaw in digital
banking double spending now what's that
let me explain through an example if a
person buys a sandwich worth ten dollars
for instance they cannot spend that same
ten dollar bill anywhere else
but when the same amount is paid
digitally
some people can manipulate systems and
spend the same ten dollars
more than once and that in simple words
is double spending to stop this from
happening you have banks and credit card
companies acting as middlemen
so they vouch for the transactions that
you make and they prove that you've
already paid for something
at the same time they take their own cut
of the transactions you make
enter bitcoin it solves both these
fiddly problems
like i said it is decentralized meaning
there is no third party controlling it
instead it is regulated by its own
community of users
and all of them record all of their
transactions at the same time
any attempts to fool the bitcoin
community will ideally get noticed
and the payment will get rejected no
single user or government or bank or
credit card company can force a
fee on your payment or control its flow
plus
bitcoin is said to be secure from the
effects of currency debasement and
inflation
does sound perfect doesn't it well it
isn't bitcoin is not without problems
the transactions are irreversible
once you've paid you've paid you will
not get a penny back
plus it's extremely volatile the value
keeps fluctuating
on the 14th of april it was worth 63 000
us dollars one bitcoin
on the 23rd of april it sank below 50
000
why does this happen you see like
everything else the price of bitcoin is
driven by demand and supply
when the demand increases the prices go
up when people see the price going up
they feel like cashing in so they try to
sell their own bitcoin
and this leads to more people wanting to
sell but sometimes
there are not enough buyers so they
lower their price
and on it goes like a roller coaster
ride so fluctuation
is problem number one the second problem
has to do with security
the digital wallets containing bitcoin
are stored in
phones and computers and we all know how
vulnerable
these are two theft and hackers in 2016
a los angeles hospital ended up spending
17 000 us dollars on illegal
transactions
after hackers took control of its
computers for more than a week
so if you have a good amount of money
invested in bitcoin
create passwords that are difficult to
guess also stop visiting those weird and
suspicious websites
the same rules apply for every other
cryptocurrency
which brings us to the question how many
are there
4 000 plus there are more than 4 000
crypto currencies in the world why do so
many of them exist because why not
the key software to create a crypto is
open source which basically means
anyone and everyone can create them so
there's litecoin
name coin peercoin grid coin ripple
prime coin
order mazer coin stellar and this
dogecoin a cryptocurrency that started
off as a meme
it has now become mainstream in 2013 two
software engineers used the image of a
dog
and made this cryptocurrency as a joke
their aim was to make fun of how people
would invest in anything and guess what
people did just that on the 20th of
april dogecoin's market capitalization
surged to more than
50 billion dollars it ended up being
worth
more than ford and marriott all thanks
to dogecoin supporters
who used hashtags and social media posts
to fuel its price
and this episode is both laughable and
fascinating it tells you about the times
we're living in
where online campaigns can have a
surprisingly big impact on the market
price of
anything an age where parody can be
turned into a real
asset dogecoin is worth 50 billion
dollars ...........
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