Understanding cryptocurrency full guide for dummies (2018) electricity and magnetism purcell


“Look at Bitcoin’s history. The more severe the dip, the more extreme the bounce. This has happened dozens times in the past. But look at Bitcoin’s year over year performance. Extrapolate and you see that my prediction of $1 mil in 2020 is conservative”, the founder of software company John McAfee posted on his Twitter page.

Blockchain is the basis of any cryptocurrency. It contains the interconnected blocks of information. It is impossible to delete or change the data stored on these blocks, which is one of the main distinctive features of Blockchain technology.

Blockchain was worked out by Satoshi Nakamoto in 2009. However, nobody knows if Satoshi Nakamoto an individual human being or a group of people united by one goal – cryptocurrency development. But it is evident, that he or they spent thousands of hours to create Blockchain.

Important! It is impossible to change the single block notwithstanding the desire of its holder to crack it. The changes in Blockchain are possible only in case someone will manage to hack all the blocks in a chain, which is impossible in practice.

As BitInfoChart reports Ethereum mining process is the most difficult. Bitcoin and Bitcoin Cash take the 2 nd and the 3 rd positions accordingly. At the same time, the cryptocurrency market capitalization has broken through $325 billion in February 2018.

Ripple positions itself as cross-border payment system for banks. Transaction speed is 4 seconds (compare: 3-5 days for SWIFT system). The developers claim that it is possible to conduct up to 1500 transactions per 1 second, which allows comparing it with Visa.

NEM stands for New Exonomy Movement. This cryptocurrency is based on Java and Java Script. NEM is compatible with Linux, macOS and Windows. NEM blockchain is realized through an open blockchain network Mainet and commercial blockchain network Mijin tested by financial institutions and Japanese private companies.

The beginning of 2018 is marked by cryptocurrency market recovery, after top 20cryptocurrencies lost their price in December 22, 2017. In general, the cryptocurrency market capitalization reached $325 billion. Ripple and Ethereum are at the head of the market stabilization and growth, while Bitcoin loses its positions.

The year of 2017 went down in history owing to significant changes in the sphere of cryptocurrency, ICO projects and Bitcoin price! The words “blockchain”, “mining” and “faucet” are embedded into the thinking of billions of people around the world.

A new US bill to forbid buying weeds with Bitcoinwas placed for consideration at the end of January. However, in February it was rejected in view of lack of Ann Rivers support. The senator stopped seconding the bill when the positive sides of the cryptocurrency were introduced.

Wrexham Glyndwr University was the first to introduce the course dedicated to the financial technology. The full name of the course sounds like “Financial Technology Management”. 3 years of study presuppose financial design making, introduction to management accounting, financial technologies and what not.

Since April 2017 Bitcoin is regarded to be a legal method of payment in the Land of the Rising Sun. It led to a set of fundamental requirements to cyber security are imposed therewith. This event is definitely momentous for virtual currency.

An 18-years millionaire was presented to the world. His name is Erick Finmand. When he was 12 his granny gave him $1000 and a boy decided to invest in Bitcoin. It was the right decision, as in 2 years he possessed 100 times more. He gave up school and became a businessman. Now he is the owner of 403 Bitcoin.

As Cointelegraph reported, 20-years old British model Chloe Ayling was kidnapped by “Black Death Group”. The kidnappers wanted to sell her at the value of $ 350 000 in Bitcoin. Fiat money was not interesting for the adversaries. Luckily, the model was let go.

One of the episodes of “The Big Bang Theory” was devoted to Bitcoin. However the residents of China could possibly watch it because of severe censorship dominated in the country. The most resourceful internet users preferred using VPN services in China to bypass local restrictions.

The last month of 2017 became really important in the history of cryptocurrency. Bitcoin price reached its maximum on the 17 th of December – $20 000. The analysts said that this cryptocurrency could reach the price of $100 000. But the current state of affairs shows the converse.

In the whole, the year of 2017 appeared to be decisive for cryptocurrency in general and Bitcoin in particular. Numerous ICO projects became successful and attracted billions of dollars, new cryptocurrencies blew in, while Bitcoin broke all records. Still, it is difficult to predict the future of this sphere.

⇒ Bitcoin holders are looking forward to the next rise in price of this cryptocurrency. Why not? A year ago Bitcoin price was about $1000, but in November 2017 it increased by 2000%. Analyst of Saxo Bank K. Van-Petersen stated that Bitcoin could reach the price of $100 000

The legal status of cryptocurrencies varies in different places around the globe. There are the countries where cryptocurrency transactions are authorized. In other countries Bitcoin transactions are not allowed for the banks, but may be conducted by individuals.

Cryptocurrency transactions are defined as barter transactions in Australia. The companies dealing with digital currency are obliged to keep tabs on such transactions. Tokens are consigned to be an ordinary income and are estimated at Australian dollars.

Being the country with high economic advance, China plays an important role in cryptocurrency sphere. According to Goldman Sachs report, 80% of Bitcoin traded value accrues to yuan. In spite of the fact that the People’s Bank of China banned payment with cryptocurrency (Alipay and Tencent are forbidden as well), substantial cryptocurrency growth is observed.

The legal status of cryptocurrency in the EU countries is determined by Court of Justice of the European Union. As it is stated in the document “…bitcoin is a means of payment used in a similar way to legal means of payment and the transactions … be exempt from VAT”.

According to Federal Bureau of Investigation, Bitcoin is recognized to be virtual currency. Since March 2013 it is possible to exchange cryptocurrency for fiat money. However, the situation differs from state to state. Thus, it is possible to buy goods and pay for services by means of digital currency. What is more surprising the US Securities and Exchange Commission initiated the 1 st cryptocurrency fraud case in autumn 2017.