Receive our daily pre-market mover email, free. Bitcoin 101: What Is It and Why Does It Matter? Are linja aho bitcoin stock chained in crypto confusion?
It’s time to make cents of it all. What the hell is a Bitcoin? Don’t be embarrassed if you’ve been left scratching your head as the new cryptocurrency phenomenon has boomed around you. It’s a complex concept that not only requires a working knowledge of the stock market, but a deep understanding of tip-of-the-spear technology, too. But you do need to understand it, make no mistake.
Instead, Blockchain, the technology at the heart of the cryptocurrency movement, has applications that extend well beyond the realms of cryptocurrency. So let’s dive in with a bit of Bitcoin 101 and level-up on cryptocurrency. We’re going to start with a technical overview, so fair warning. Take a deep breath and stick with us, it will all make perfect sense at the end. The term cryptocurrency refers to a digital currency that is encrypted by a sophisticated algorithm so that it can be securely passed between two individuals. 00000001 – has a unique encrypted code given to it as it is created. Each individual who wants a particular cryptocurrency is also given a unique encrypted code.
This is called their wallet, and it acts as their address in the cryptocurrency world. It’s a location where things can be sent to and sent from, and every fraction of a cryptocurrency is never without ownership. It is given as a reward by the creators of a cryptocurrency to those who contribute their computer’s power to the support of its network. This ensures there is always a finite number of units of a cryptocurrency available, which creates a supply and demand environment. As a result, the value of any given cryptocurrency changes continuously, based on the perceived value of those invested in it? Now let’s break all that down for you.