Blockchain and Crypto currencies

Crypto currencies have positively surprised many traders especially in 2017: Bitcoin, Dash, Litecoin, Ripple and Co. literally outbid each other with price increases and set off for new price highs day after day. Ripple, for example, recorded an increase of more than 4000 percent. Other digital currencies followed suit.

One can only dream of such a performance with other financial investments such as stocks. For this reason, more and more traders are investing in crypto currencies and use it for online cssinos as you can read at https://neconnected.co.uk/. But what is behind Bitcoin and Co.? Where can digital currencies be bought? To invest in crypto currencies, investors have several options at once. We show the potential behind it and what needs to be considered when trading.

What are crypto currencies?

Crypto currencies: They are not only present in the media, but can also be found on countless trading platforms. Especially in 2017, hardly a day passed on which there was no new news about Bitcoin, Dash and Co.. What is behind it?

Crypto currencies are digital currencies that are generated by computing power and often used for shorting. For this purpose the own network of the respective crypto currency is used. Most of them serve as decentralized means of payment and are not issued or controlled by central banks or other credit institutions. The network is based on the peer-to-peer connection. Within such a network, the digital values are sent and received in encrypted form.

A look at the history of digital currencies shows that there were already initial considerations in the 1990s about an alternative, decentralised payment option on the Internet. In 2008, Bitcoin was the first crypto currency to be officially introduced as such an online payment method. Initially, the price and acceptance of the crypto currency developed rather cautiously. In 2017, however, there was a real hype. Further digital currencies developed in Bitcoin’s slipstream. Some of the best-known are:

The number of crypto currencies is constantly increasing. Corporations are also issuing their own digital currencies. Kodak recently announced that it wants to create its own crypto currency.

Blockchain – the technology behind the crypto currencies

For many investors, digital currencies are not really tangible because they are based on cryptic generation. The origin of Bitcoin and other cyber currencies is the so-called blockchain. This refers to successive data blocks that represent all network transactions. A blockchain consists of countless algorithmic number sequences and is always encrypted. If the transactions are confirmed and processed, a hash is added to each data block. To generate the digital coins, computing power is required. How long the extraction of the digital coins takes depends on the crypto currency. Mining is also known as prospecting. The “miners”, i.e. the “producers” of the crypto currency, are rewarded for their services with coins. For each crypto currency there are differences regarding the network and its functions. Some digital currencies are based on Bitcoins, others use alternative technologies. In particular, new crypto currencies are significantly faster in transaction times than the best-known digital currency, the Bitcoin.

Advantages of digital currencies

The high demand for Bitcoin and Co. is mainly due to the many advantages associated with them. Digital currencies have many functions that conventional means of payment do not have. However, crypto currencies can do much more: they are not only suitable as a means of payment, but also serve as a good investment opportunity. What exactly are the advantages of digital currencies?

  • Speed: Transactions are carried out in seconds or minutes using crypto currencies.
  • Data protection and anonymous transfer: Anonymity and data protection have top priority within networks. That’s why digital currencies were once created. Sender and recipient remain anonymous – at least when viewed from the outside. Within the network, some crypto currencies may restrict anonymity.
  • Transparency: The blockchains guarantee a maximum degree of transparency; every member of the network can trace them. Manipulations on the part of the network are almost impossible.
  • Low costs: Due to the speed of the transactions, the crypto currencies are extremely cost-effective. The costs are based, for example, on the energy costs required to execute the transactions within the network.
  • Accessibility: The use of the crypto currency as a digital means of payment is possible without much effort. All you need to register for a network is software.

The list of crypto currencies is long and is apparently getting longer from day to day. However, over time, some digital currencies have become clear favourites among users. These include Bitcoin in particular. Bitcoin was already published in October 2008 by Satoshi Nakamoto. However, the first Bitcoins were not generated until 3 January 2009. This was in fact the birth of the digital currency, which paved the way for countless old coins. As a decentralized means of payment, Bitcoin was intended to serve as a real alternative to online payments. But the crypto currency also unfolded its potential as an investment opportunity.

On February 2, 2011, a Bitcoin was worth as much as USD for the first time. In the following years, Bitcoin’s share price stagnated, but in 2014 a turnaround came: From now on, a Bitcoin was worth over USD 100. Finally, in 2016/2017, the crypto currency experienced an enormous upward trend. In 2017 in particular, market capitalisation rose rapidly and prices exploded. What does the Bitcoin forecast look like – is an investment worthwhile? Many financial experts disagree as to what Bitcoin’s development will be. Some predict further highs for the crypto currency, others warn against the bursting of the proverbial Bitcoin bubble.

Market capitalization – Often in connection with Bitcoins

This crypto currency has existed since 2014 and is run as a non-profit project by the Swiss Ethereum Foundation. Ethereum also uses blockchain technology, but is increasingly targeting companies. Conventional contracts are to be replaced by Ethereum. This should make global transactions much faster and less complicated. Within the Ethereum network, for example, crowdfunding campaigns will be launched.

The platform is decentralised so that manipulation and exertion of influence from outside are ruled out. Within the network, the transactions are executed by the Coins, Ether. The principle behind this works with tokens that can be purchased or generated. The course of Ethereum is extremely variable. In September 2017, it almost broke the USD 380 barrier. Previously, however, it was traded below USD 15 (in 2017, for example). Ethereum’s potential is positive, as fast transactions and alternative contract use are attracting more and more network participants.

Ripple

The digital currency is abbreviated XRP and was initiated in 2013 by Ripple Labs and Ryan Fugger. It is also based on blockchain technology. However, this is not only about digital transactions: Ripple also supports trading in material goods and foreign exchange. The crypto currency is not generated by mining; Ripple has existed since its foundation. 100 billion was spent on the foundation of the Ripple network.

Dash

Digital Cash – Dash for short – was previously known as Darkcoin or XCoin. This crypto currency has existed since 2014; it is also based on the Bitcoin protocol. However, this has been improved in terms of transaction speed, anonymity and scalability. Transactions are executed almost in real time and 45 percent of the mining revenue is distributed across the Dash network. Dash also showed the potential of the crypto currency in 2017 and convinced investors with a true price rally.

Monero

Monero is based on the technology of Bitcoins and has been in existence since 2014. The crypto currency behind it is abbreviated as XMR. What is the difference between Bitcoin and Monero? With Monero, network users can benefit from greater anonymity and a better encryption process. There is also greater decentralization and significantly reduced transaction times. XMR is considered to be more scalable, making the crypto currency attractive to more and more users and investors.