Bitcoin, Blockchain, Dogecoin, Ethereum, Nfts.
Everyone is talking about cryptocurrencies right now but what does all of it mean? So, here you go with all you need to go from crypto noob to crypto genius. I am going to explain to you what it is and why it keeps becoming more important day by day.Â
Stage one was when society was in its early stages, there was no such thing as money; we used to buy things in trade with other things like exchanging your horse for food or anything. But the problem with the system like that was even though you might be perfectly happy to give up your horse but the other one might not need the horse so the trade would never happen and that is where currency came in.
Stage two was Coins. Because they were made of precious materials like gold and silver, everyone just accepted that they must be worth something.Â
You must have heard of the British pound. The reason that it is called a pound is because it was literally one pound of silver. And now if you wanted to trade, you could use the coins because it is a precious material and you have the reassurance that you can give it to someone else and trade for something that you want. It became convenient but this had to evolve.
Stage three was as banks became established and governments had control we realised that as long as there was trust in the system we could move away from needing to carry blocks of precious metal towards something even more convenient that was paper money. It does the same thing but now money does not have value because it is not made of pure silver, it has value because the government says it has value. But as technology improved even further, we found even more easy ways of storing and trading our stuff.
Here comes Stage four where people are buying and selling things online and using credit cards and from here we have found the most convenient way of exchange; cryptocurrency.
Stage five. The way to think about cryptocurrency is that it is 100% virtual. Now with crypto, there is no gold, no silver and no paper, just transfer of digital assets. But why is everyone going crypto crazy?
Well, there are some distinct advantages to a currency system like this:
 Decentralisation; which means that while every transaction of a given cryptocurrency is all recorded on the same ledger there are many copies of that ledger and anyone who is a part of the network has one copy of it.
You might have heard of cryptocurrency mining or bitcoin mining . All that is someone who set up a computer to crunch through transactions on their copy of this ledger or spreadsheet. There are already about a million bitcoin miners around the world and bitcoin is just one type of cryptocurrency. There are plenty of areas in the world that have internet access which is all you need for crypto but don’t have access to traditional banks which require a lot of paperwork.
The main perk of crypto is that you do not need banks anymore because everything is stored by the people on the ledger. You can now make international payments almost instantly.