Introduction To Digital Coins
While the news about Bitcoins and other Cryptocurrencies is making headlines every other day,
all across the globe, it is indispensable to not keep up to date with all the buzz around. While
crypto and blockchain is not rocket science, still it takes a little effort for a complete beginner to
understand what it actually is. So, the birth of alternative coins hit the market. They want to
improve bitcoin or solve difficult human problems. If you are someone who is into
cryptocurrency or it interests you, then it is good to be aware of what cryptocurrency is all about,
how it works and what are the risks and benefits involved.
What is cryptocurrency?
You might have heard a lot about different kinds of cryptocurrencies and how they are getting
increasingly popular recently. Cryptocurrency is nothing but a digital currency and it uses the
technique of cryptography for keeping it secure. The best part is that it is not controlled by any
authority or is not regulated by any commercial banking or financial organization, which means
with crypto your earnings and spendings are not being tracked by any control mechanism. In
other words, cryptocurrency is an independent currency. The first of its kind cryptocurrency was
“Bitcoin” and it was brought into existence in 2009. Today in a span of less than 10 years it has
over 14.1 million coins in circulation which value over 3.5 billion.
What are ICOs?
For alternative coins it all starts with an ICO which means “Initial Coin Offering”. It may sound a
bit more technical than it actually is but an ICO is just a mechanism that helps source the funds
for a new Crypto project. It differs from other capital investments in a way that it is not controlled
by the laws governing investments and there is no one controlling returns by levying taxes and
fees. It is a simple investment, with zero government interference and in return the investors get
to keep a fixed number of the cryptocurrency generated.
Why Crypto: aren’t my dollars good enough?
This is the popular discourse and despite crypto being a very successful and immensely popular
currency gaining popularity, the critics always come up with the argument of crypto being a
bubble currency. Sure, the dollars are good, but are they good enough or better than crypto?
Let’s see what’s on offer and what’s to be sacrificed. To understand this let’s understand the
processes involved in creation of a Cryptocurrency before it gets into circulation.