Cryptoassets

Cryptoassets is your guide to understanding this revolutionary new digital asset class and explains the history of Bitcoin, how to invest in it and other cryptocurrencies, and how the blockchain technology behind it all works.

Cryptoassets like Bitcoin and Litecoin wouldn’t be possible without what’s known as the blockchain. In simple terms, it’s a digital directory of who owns crypto and how much they have. But it’s a little more complicated than that.

The first thing to understand about the blockchain is that it’s better than governmental or bank databases because it’s decentralized. The people who run its software on their computers are the ones operating and updating it.

There are three main properties of the blockchain to know about if you want to understand how it works:

First, it is Distributed, which means anyone in the world can access it as long as they have a computer. Second, it is Cryptographic or encrypted by unbreakable computer codes. Third, it is Immutable, meaning that nobody can delete anything from it. This is because it’s always syncing with the massive worldwide network of computers that run it.

Another important component of the blockchain is that it’s constantly growing. Whenever a new Bitcoin transaction gets recorded, a new “block” gets added to the chain. Miners compete to be the ones to add each new block because if they do, they get paid with Bitcoin.

This technology is so robust in part because deleting anything from it requires everybody running the software to approve of it unanimously. It’s also public, which means that it’s easy to catch people who try to misuse it.

A few years ago, I put money into the stock market for the first time. It was exciting and also made me nervous at the same time. When your money is on the line, it’s hard to predict what will happen. But since then, I’ve made hundreds of dollars from my investments. My only regret is not investing more and not investing in Bitcoin sooner. They say the second-best time to plant a tree is right now. Currently, I’m starting to invest in crypto, and it would help if you considered doing the same. Although these investments were once more volatile, they’ve calmed down and are a lot safer than they used to be. Their potential to completely alter everything we know about finance is also a good reason to get into them now. Think of how email destroyed snail mail or how Netflix killed blockbuster. The next similar story is going to be Bitcoin tearing down traditional money systems. The sooner you get in, the more you have to gain. Bitcoin might be expensive right now, but the author…