Dear friends good evening. Today I read about misconceptions related to cryptocurrencies. One of the biggest misconceptions is: It is difficult to understand crypto and I have nowhere to educate myself. Only a couple of universities at the highest level of study offer professional education on blockchain and cryptocurrencies. The crypto industry recruits the greatest experts from all areas of business and shapes them according to its own rules and practices. The deep theory of cryptocurrencies goes much further than a short and clear explanation. Mathematics, psychology, economics, programming, cryptography… all these sciences are permeated through the genesis of cryptocurrencies to reach the current level.When we read this we realize that cryptocurrencies are not a simple matter.But do we know how a plane flight works? Not completely, with some exceptions, but we still enjoy that possibility of fast transportation.The best source of information and material for a better understanding and breaking of misconceptions about cryptocurrencies is their birthplace, on the Internet.
One of the misconceptions is: The minimum to buy is one Bitcoin
Since Bitcoin is a completely digital currency, it can be easily divided into smaller parts. The smallest unit of Bitcoin is called Satoshi, after the creator.One Bitcoin contains 100 million Satoshi. At the current price of Bitcoin, one Satoshi is worth about $ 0.00048. Of course, buying fractions for such a small amount is currently not attractive to buyers or sellers because the purchase cost itself would exceed the purchased amount, but already many are converting the value of Bitcoin into Satoshi and believe that one Satoshi will soon reach $ 0.01, or one bitcoin bit will be worth a million dollars.
Cryptocurrencies are illegal, banks will ban them and they may disappear
As time goes on, more and more banks are considering it, and many have already included cryptocurrencies in their offer. In addition to the availability of cryptocurrencies to customers, banks are happy to use cryptocurrencies and their protocols for their own needs, and China's digital yuan-led digital currency digitization project is an increasingly enticing and almost inevitable move by other central banks.
Due to its decentralized nature, cryptocurrencies are impossible to shut down, ban, delete. Given that there are a large number of projects on the market, only some of them survive in the long run and retain their value, but as long as there are miners, ie people who maintain the blockchain network and activities on it, cryptocurrencies are eternal.
Mining is illegal, difficult to start and stops when all the coins are mined
The mining process is based on maintaining, validating and starting a blockchain network using a processor that solves complex cryptographic tasks. For their contribution, miners receive rewards in the form of coins. As the acceptance of cryptocurrencies became inevitable, many companies chose mining as one of their passive sources of income.
Even when all the coins of a blockchain are mined, miners will receive rewards based on transaction costs for their work, so mining is necessary as long as there is a cryptocurrency, and the start itself is not as complicated as one imagines. Every phase, from the choice of hardware to the tricks of how to maximize mining profits is explained in detail by experienced miners. A mitigating circumstance in this new business is that the whole community is there to help each other for the same purpose: to maintain the blockchain of their favorite cryptocurrency.
I better buy more coins that are worth less than part of some expensive one
A term that will help us explain why the price of a coin is not an arbitrarily determined value that can grow uncontrollably is market capitalization. By multiplying the current price by the total number of coins in circulation, we get the market capitalization. No matter how speculative and difficult to determine the value of cryptocurrencies, it is necessary to be realistic in the assessment, with reference to the rest of the market.Cryptocurrencies that have a low price are very likely to have a large number of coins on offer. Their capitalization would be disproportionate if they reached a higher value per coin. For example, the current number of Shiba Inu (SHIB) coins is a little less than 500,000,000,000,000. The total number of Bitcoins is 21,000,000. If Shiba reached a dollar value, its capitalization would be 500 trillion and it would be - the most valuable thing in the world. The question of what the chances are for this to happen may be better reformulated into "Is there a chance?"
In the end, do not live in delusions. I give you my picture next to the white piano.
I like too good a story. Pure ten from me. Enjoy Mr. Snezana