Cryptocurrency? Bitcoin, Litecoin, Ethereum And The Rest!
In and around 2008 – 2012 I was involved in online activities, like website design and internet marketing, during that time there was the emergence of Bitcoin (A new form of cryptocurrency) which I did look at but it seemed rather complicated and not many were using it so it seemed almost worthless to me at the time, I think I went as far as mining a few hundred coins and then put it aside. Fast forward to the present and what a mistake I made when I put aside Bitcoin as that account would be worth hundreds of thousands now!
I recently had a conversation with a dear friend who has advised me not to get involved with the crytpcurrency revolution, however having done a little research this industry is still in it’s infancy in many ways and the opportunity for people to make some money by trading these currencies is possible. Not only trading cryptocurrencies is possible now but they are a new and easier way for retailers to do business. Many of these new digital currencies are decentralized meaning they bypass the current government backed central banking system, this is presents a problem for the powers that be, the following video explains the current central banking system and how it got started.
Since returning to the internet (I actually never left it just dropped back to a consumer rather than a producer) to produce this website and maybe some others, I have been confronted with the many developments in the cryptocurrency industry and the realisation there is still plenty of opportunity here for everyone. Right now my knowledge is still rather limited but I have done some research and have discovered there are alternatives to Bitcoin. So I thought why not start here by listing the alternatives and a little bit about them.
Bitcoin is a worldwide cryptocurrency and digital payment system called the first decentralized digital currency, since the system works without a central repository or single administrator.It was invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto and released as open-source software in 2009. The system is peer-to-peer, and transactions take place between users directly, without an intermediary.:4 These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.
Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. On 1 August 2017 bitcoin split into two derivative digital currencies, the classic bitcoin (BTC) and the Bitcoin Cash (BCH).
Litecoin has set itself up as the “silver to Bitcoin’s gold.” Transactions are reported to be processed more quickly with Litecoin than Bitcoin. The way it’s mined has eliminated some of the advantages for miners with specialized computer hardware. Below is what Wikipedia says about Litecoin.
Litecoin (LTC or Ł) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. While inspired by, and in most regards technically nearly identical to Bitcoin (BTC), Litecoin has some technical improvements over Bitcoin, and most other major cryptocurrencies, such as the adoption of Segregated Witness, and the Lightning Network. These effectively allow a greater number of transactions to be processed by the network in a given time, reducing potential bottlenecks, as seen with Bitcoin. Litecoin also has almost zero payment cost and facilitates payments approximately four times faster than Bitcoin.
Peercoin has entered the market as kind of green alternative by using less energy and being more environmentally sustainable than some of the other cryptocurrency coins on the market at the moment. It says it is designed to have a 1 percent rate of inflation built into it’s system. Here is what Wikipedia says about Peercoin.
Peercoin, also known as PPCoin or PPC, is a peer-to-peer cryptocurrency utilizing both proof-of-stake and proof-of-work systems.
Peercoin is based on an August 2012 paper which listed the authors as Scott Nadal and Sunny King. Sunny King, who also created Primecoin, is a pseudonym. Nadal’s involvement had diminished by November 2013, leaving King as Peercoin’s sole core developer.
Peercoin was inspired by bitcoin, and it shares much of the source code and technical implementation of bitcoin. The Peercoin source code is distributed under the MIT/X11 software license.
Unlike bitcoin, Namecoin, and Litecoin, Peercoin does not have a hard limit on the number of possible coins, but is designed to eventually attain an annual inflation rate of 1%. There is a deflationary aspect to Peercoin as the transaction fee of 0.01 PPC/kb paid to the network is destroyed. This feature, along with increased energy efficiency, aim to allow for greater long-term scalability.
Primecoin miners have to use their computers to find Cunningham chains, which are sequences of prime numbers. Primecoin says the mining of such prime numbers as “providing potential scientific value in addition to minting and security for it’s network.” Below is what Wikipedia says about Primecoin.
Primecoin (sign: Ψ; code: XPM) is a peer-to-peer open source cryptocurrency that implements a unique scientific computing proof-of-work system. Primecoin’s proof-of-work system searches for chains of prime numbers. Primecoin was created by a person or group of people who use the pseudonym Sunny King. This entity is also related with the cryptocurrency Peercoin. The Primecoin source code is copyrighted by a person or group called “Primecoin Developers”, and distributed under a conditional MIT/X11 software license.
Primecoin has been described as the main cause of spot shortages of dedicated servers because at the time it was only possible to mine the currency with CPUs. For the same reason, Primecoin used to be the target of malware writers.
Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship or third-party interference. Here is what Wikipedia has to say about Ethereum.
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called “ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.
Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was funded by an online crowdsale during July–August 2014. The system went live on 30 July 2015.
In 2016 Ethereum was forked into two blockchains, as a result of the collapse of The DAO project, thereby creating Ethereum Classic.
One of the main ways you can obtain these currencies is through mining for coins, this utilizes your computers processing power to perform a small part of the overall processing of transactions, (kind of anyway) to do this you install some mining software like Miner Gate. Once installed and setup it can run in the background but beware they can be resource intensive.
So how much money can you earn from mining cryptocurrency? To be honest it’s pretty dismal for example: My main PC is a Core I5 with 4 Gig (DDR 3) Ram and a 1 Terra-byte HDD. It has a gaming video card 2 Gig and with all the processing power I have the most I can expect to earn from mining with this PC is about $25 – $30 per year! Is it even worth mining? Well yes and no it depends on how many PC’s you can mine with, their processing power and which cryptocurrency you choose to mine.
Below you can see a more comprehensive list of the cryptocurrencies that are available today as well as some conversion tools, as you can see they are very quickly gaining support and therefor value as currencies.[currencyprice currency1=”btc” currency2=”usd,eur,ltc,eth,jpy,gbp,chf,aud,cad,bgn”] So far I have mined about 460 Bytecoins, 20 Mona Verde, 180 Infinity-8, 25 Qauzar Coins and about 100 combined aross a half dozen different others. While I am not expecting much from any of them, I do think some of them may end up being worth something one day in the future. So my strategy here is a long term one!
Below I have found some great reading on cryptocurrencies from Amazon.[amazon_link asins=’B075473X48,1977942830,1548714356,1549896024,B01GGQJ2XW,1250081556,B074SZV2M4′ template=’ProductCarousel’ store=’richardmonsse-20′ marketplace=’US’ link_id=’79684ec3-b7fc-11e7-ade1-9118e5460cb6′]
Perhaps the best way to make money from these cryptocurrencies is to use them mostly as they were intended which is as a form of secure digital currency with which to sell your goods for, anyway I will post some more of these soon. For now though it would be advisable to do your own research on these as soon as you can. These new forms of digital currency are really just the beginning! Getting involved in these currencies now may be a good way to prepare for the future end of the human worker! Let me know what you think!
**Disclaimer** I am not a financial advisor and I am not offering financial advice, this post is for informational purposes only!