Introduction to Digital Currencies
These guides teaching new users how to use cryptocurrency are not addressing the fact of the matter that most coming into the concept now, have kinda no clue what most of these guides are referring too. We are going to try and help with that, our goal and focus is to bring you the help in a easily understandable form, that best meets today's quick paced world. No need to spend the whole day and learn, when we can teach you along the way, step by step, using examples as a means to teach not just words.
Some early info about why cryptocurrency is unique, an there why so popular.
First you might want to get catch up on the vocabulary used, since it can easily mislead or confuse even the veteran users alike. You can view that page Cryptocurrency Vocabulary
Cryptography is really already in use everywhere, in your phones, emails, an even web browsing. It's mathematical functions that create a complex problem that only the parties needed to be involved know the answer to solve, this way making it in a sense secure. There is also the ability to randomly guess variables to get to the answer, but depending on the algorithm, could take a very long time, could take a few hours.
So now you know what Altcoins are, and coincepts, we can get you to understand why all this, and why not just stick with fiat ( dollars )?
Well fiat is printed by the FEDs ( in the case of USA ), and this is easily a bad idea, since there isn't anything now that is backing the printing of this money. It used to be gold, but is more or less whatever the FEDs say, and that's pretty scary. During the last depression / recession, a japaneese man of the name " satoshi " came up and released a white paper on Bitcoin, this concept was developed and released and became a quick interest in the underground world of cryptonuts ( cipher and code fanboys/girls ) These users quickly saw the future in this concept and developed upon it, creating a vast array of the community services and sites you see today.
These users also saw that Bitcoin was limited, even though it's ability to remove the world out of fiat suppression, it wasn't able to do other things many felt it needed to, an thus they thought and came up with their own altcoins, some of these developers came up with ingenious coincepts like Namecoin, and Peercoin, but others fell short and just tried to mimic the ones that worked. As time went on, the value of bitcoin went up, from 5 dollars in 2010s to 1400.00 USD in december of 2013, with litecoin at 45.00 USD at bitcoins high, then it dropped due to regulations and banks not wanting to use it, Mt gox ( an exchange ) had millions of btcs stolen through a coding error, as well this same error wiped out a few other exchanges, with these exchanges out the price of bitcoin couldn't go up and was stagnant.
Which leads us to today, while Bitcoin and the altcoins prepare their futures, we see more and more blockchain related services and sites spring up trying to get a piece of the bitcoin pie. The Altcoins thinking they can out feature one another, and bitcoin pushing to keep it's PR number one, and work at their own pace. One thing is certain, the future of currency is digital.
With the recent creation of the DOGECAR by the DOGECOIN community, it's no wonder that expectations and goals alike are high for the cryptocurrency community and it's future usage, mainly right now it's a matter of introducing the concept to users, kinda how the internet and pagers came into the market, only those who needed to use it knew about it, but as time goes on, people make it more popular to do, an thus the rest trying to cash in on such a concept will move do so.
For a more in depth explanation, try this:New Introduction .
Ready for more? move on to the next segment: Cryptocurrency Vocabulary .