A simple guide of how Cryptocurrency works.

I'm not a big fan of trades or the market in general, but crypto has always kept me at the edge of my seat when it comes to predictions and analysis.

If you are not familiar with this kind of currency...well, it gets complicated.

Cryptocurrency, Crypto for short, is a form of digital currency. It is a P2P (one user to the other) system for online payments. The system itself is decentralized, meaning that there is no middleman. These coins cannot be just created, they have to be "mined".

The process of digital mining is very, VERY different than the pickaxe one. Cryptocurrency is mined by solving very advanced math equations. Why? we will get to that in a bit. In the case of Bitcoin, a small percentage of that coin is generated and awarded to the miner when the equation is solved.

Now, the equation: this is not just a random exercise. This math problems are generated to verify transactions of other coins. On top of that, not only one miner works on a single equation but thousands. That makes the system un-hackeable and makes the transaction valid. 

This equation is hosted in the Blockchain, the block is basically this gigantic spreadsheet that contains all of this transactions' records and is accessed by all of the miners.

What does this have to do with marketing?

Everything. If you think about it, in order to increase the value of the coin, you have to make it more popular so people would want to buy (or mine) for themselves. That would increase the amount of transactions and demand to create more. Making the coin's demand rise has been the goal of many coin holders. Keep in mind that most coins, like Bitcoin(21m), have a limit and once the last coin has been generated, there will be no more of it to create. Until we reach that number, it is pretty much like the stock market. Many factors come into play, but the most effective one is popularity.

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