Categoria: Cryptocurrencies

Difference between crypto, token and ICO

Autor do post Por Jéssica Gonçalves
Data de publicação outubro 31, 2020
Nenhum comentário em Difference between crypto, token and ICO

A cryptocurrency has its own Blockchain. Tokens, on the other hand, are created on the Blockchain of an existing crypto. But is it just that difference between cryptocurrency and token?

A cryptocurrency has its own Blockchain and has a currency function only. It serves no more than that. The token is subjugated to an existing Blockchain. However, it has many functions, being more intelligent […]

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What is the difference between crypto and tokens?

Understanding a cryptocurrency

Bitcoin, for example is a cryptocurrency. It’s digital money. But it serves no more than a currency. You can use Bitcoin as a currency or as a saving of value, but apart from that it is no longer useful.

A virtual currency also has its own Blockchain, so:

Bitcoin has the Bitcoin Blockchain;
Ethereum has its own Ethereum Blockchain.

Just like ordinary money. Money is only useful for buying things, but it is useless. You can better understand what a cryptocurrency is in this text: “What is Bitcoin? Complete Guide 2020“.

Difference between crypto, token and ICO

Understanding a token

A token is created from a cryptocurrency’s Blockchain. For example, the Chain Link (LINK) token is created within the Ethereum cryptocurrency Blockchain.

However, a token is much more intelligent and has many more functions than a cryptocurrency.

Tokens can hold complex levels of value and have varied and peculiar characteristics. Within the programming of a token, there are certain programs that make them multifunctional.

Main characteristics of a token

In fact, tokens represent 4 very important things:

Property. Within the token there is programming that represents the creator’s intellectual property;
Utility. You need this token to enter the environment for which this token was created;
Reward: The consumption of the product or service of the environment generates return to the token holder;
Fungibility: Will be spent or consumed after use.

And in addition, there is also of course, the function of currency exchange. But this is more a consequence than a function of a token. Remembering that the focus is its use and not its financial value.

Difference between cryptocurrency and Ethereum token

In order to better explain the difference between cryptocurrency and token, I will give the example of Ethereum. Ethereum has its own Blokchain, just like Bitcoin. Only with a multiple functions that BTC does not have!

This Blockchain has its cryptocurrency: Ethereum (ETH). Subdued to him, there is an immense list of tokens. Some things you can do on the Ethereum network:

Financial transfers to any part of the world;
Crowdfunding campaigns;
Insurance policies;
Registration of property titles;
Tax collection;
Voting;
Medical history record;
Create tokens;
And others.

ETH: crypto with token function

This Ethereum virtual currency has the function of cryptocurrency and token. To use the Ethereum Blockchain, you need the Ether token (ETH). In other words, ETH has the role of cryptocurrency. But at the same time, it has an intelligence within it that gives the function of utility, which we mentioned above.

Therefore, the ETH token allows the user to use and take advantage of the things they can do within that environment, in this case the Ethereum Blockchain.

What is the token function?

As stated earlier, tokens have intelligence and certain functions. To illustrate, I will give the example with the bank token.

In the past, to access your bank account over the Internet, you had to have a token. This token is physical, looks like a pen drive and showed a type of “password”. This password, in turn, changed every minute or second.

This token has the intelligence to allow you to access your Bank. That is, it is useful only for that environment. So it allows you to benefit from using your bank over the Internet.

Of course, this is a very old example, nowadays, we no longer use the physical token.

What is the difference between cryptocurrencies and tokens in trading?

Using the same example as before: Imagine that your bank issues only 100,000 tokens. However, it has 200 thousand customers! And all 200,000 want to have their own tokens.

It is likely that some people will decide to sell them. And so they start to trade the tokens with each other. That’s why tokens have value: because people want to use it for a specific purpose!

In terms of trading, it is no different from cryptocurrencies. All can be registered and traded on an exchange. Its price (when it is not a stablecoin) is usually determined by supply and demand.

Explaining ICOs

An ICO is the generation of a new token and the pre-sale of these to interested parties. Initial Coin Offering.

The price of the token during the ICO is usually quite low. ICO investors buy cheap to – most of the time – sell more expensive in the future. The “HODL” thing that we explain here in this text.

This new token, when generated, brings with other characteristics that will be (or not) useful in the future. So it is very important, you be carefull when investing in an ICO.

Investing in ICOs

It is necessary to check if that token will be useful. Or that it will be a project that people will use. I say this because most of the ICOs that we see out there are tokens that only have the use of currency – and of that, we already have enough!

And there is also the case when tokens are nothing but schemes and frauds, which are useless. If you invest in such type of ICO, the result will be one. The token devalues and you lose all your invested money.

Therefore, it is very important to be careful when investing in an ICO. It may be one of the best investments of your life, but most of it will disappear in the long term.

Well, these are the main differences between cryptocurrency, token and ICO. If you have any questions or would like to add to the article, call me! You can find us on the social networks below or here by the comments.

This article was written with a lot of love!

Tags Bitcoin, Blockchain, Ethereum, ICO, Initial Coin Offering

Cryptocurrencies

Do you know what it is the future of Bitcoin?

Autor do post Por Jéssica Gonçalves
Data de publicação outubro 28, 2020
Nenhum comentário em Do you know what it is the future of Bitcoin?

After posting the article “What is Bitcoin? Complete Guide 2020“, I was left with a doubt. Do people know – or imagine – what the future of Bitcoin is? Have you ever stopped to think about it?

This is a more fundamental analysis. I will talk about the evolution of money over time. The way it was changing. And how we are on the way to change the face of money once again.

People may find it difficult – even impossible – but the future is virtual currencies, yes! Of course it is difficult, there is always a lot of resistance from the most conservative when we want to change their money!

In this text, you will see how it has always been “difficult” to change. And yet, we changed! From seashells to coins today, we’ve changed!

A turn in time

Before you start to understand the future of Bitcoin as money, you need to think … First of all, what is money?

What is money?

In short, money is a way to exchange value! We have used many things like money, ranging from sea shells to precious metals! The most popular money in history was gold. And there are good reasons why gold acts like money:

Gold is rare;
It is scarce;
It is tangible. So, if you have gold in your hand, it’s yours.

Pretty simple isn’t it? And it worked for thousands of years, no matter what the government, king, president or dictator was. The gold just … ruled!

From paper money to the future of Bitcoin

And then a new invention came: paper money! Now imagine someone who has used gold as a form of money their entire lives and suddenly hears:

“Forget your gold, keep it in a safe that this paper here is the same thing, it’s worth the same! “

It must have been very difficult to convince people to leave the precious stones and start using paper money. That’s because at the time, people didn’t even imagine that in the future, it would be Bitcoin! I even imagine the people of that time:

“Trust paper instead of metal? Are you kidding me, right? It can only be!”

Gold Certificate

Paper money started only as a way of representing gold. For example, the dollar paper was in fact a “gold certificate”. That is, a piece of paper that guarantees your gold reserves. Above all, it ensures that it is kept in a safe in the central treasure.

In other words, we can say that people never trusted paper money. Rather, the government kept their gold and in return, they gave this “gold certificate”.

The introduction of FIAT money

Over time, the US stopped using the “gold standard” during the 1970s. Today, the US dollar is really “fiat” money.

“Whoa, wait a minute! ‘Fiat’ money, but what is this about ‘Fiat’ money?”

“Fiat” is a Latin word for “must be”, which is actually another way of saying:

“Guys, let’s forget about gold. Starting today, this paper you have in your hand is the same as gold. In other words, your paper that says $ 100.00 is really worth $ 100.00, with gold in the safe or not, ok?”

This seems to have worked! Especially because we are using FIAT money every day until today. And we don’t even need to have another type of currency behind it or a precious metal. Fiat money is all the currencies we have today, such as the Dollar, the Euro, the Real, etc.

These days, you have Reais or Euros. However, you don’t need to have gold in the vault to ensure your banknotes have the same value, right?

Advantage of paper money

Fiat money is already a form of digital money. That is, we are seeing numbers, not metals anymore. This makes money much easier to count, manage and move. Banknotes are just to represent money, believe it or not!

What about credit and debit cards? That are so common that we are not even taking notes. We don’t even see the money.

So comes digital money

Money is already digital, many people don’t even remember what a $ 20 bill smells like. But how do banks control it?

The solution that banks use today is a “centralized” solution. That is, they keep a ledger on their computers, which records who owns what. This book makes a record of each operation of each person.

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People trust the bank and the bank trusts their machine. Thus, the solution is all in that ledger, inside that bank’s computer.

And Bitcoin? Hey, Bitcoin is DECENTRALIZED!

BITCOIN AND IT’S LEDGER

In 2008, Bitcoin came to claim that a value exists for real. And that it belongs to a person just like banks do – only without having an “owner”. That is: without a bank, without government, without a center.

With his invention, Satoshi showed how you can create a ledger. As long as you don’t have a center or an owner. This ledger for virtual currencies is called: Blockchain. To know more about Blockchain, please read: “What is Blockchain? Explaining this technology“.

This can be confusing or, at best, like Hollywood fiction. How does something that works in thousands of places around the world work at the same time?

You already know the answer to that. And you’re using a solution like this every day, right now to read this text: the Internet. And you didn’t even notice, did you ?!

There are those who find Bitcoin a “madness” or a “bubble” for not having a center or owner. But for these people, suffice it to say that the Internet is like that too. And today we no longer live without our connection.

The Internet is one of the greatest proofs that something distributed and without an owner can work!

WHAT DOES BITCOIN MEAN FOR THE WORLD?

Here, I leave the opinion and vision of Pedro, founder of this site. Your opinion is not about what Bitcoin is, as we already know that. But it’s about what Bitcoin means to the world! And about what the future of Bitcoin will be!

Bitcoin is not geographic. If economies fall or governments change, Bitcoin will not be affected like fiat currencies.
It is also much more user friendly on the Internet, which means that global online commerce can improve.
The biggest point here are the billions of people in Asia, Africa and other places in the world. Who have an internet connection, but who don’t have a bank account or who have horrible banks!

Did you know that more than half of the people in the world do not have a bank account?

In much of Brazil, we can buy online and send money worldwide with the bank. Even though it is very slow and expensive. But in Kenya, for example, people live in great poverty! Banks are not accessible to everyone.

In Argentina and Venezuela, people exchange money on the black market because of inflation! Which makes it impossible to save for a bad day or a nest egg.

Virtual money has no borders. This is what these people need. It works even if your government or banks don’t work.

Bitcoin not only offers a chance to grow the economy, but also in technology. After all, fiat money is just a number in a bank. And it operates in the same way, in the same laws, as it did hundreds of years ago.

Bitcoin was born in the 21st century, which is why it is capable of doing many things. What makes people call Bitcoin “smart money”. And that is why we have “smartphones”! Because they have more features than cell phones a decade ago!

The future of Bitcoin has begun!

We are moving towards the introduction of Bitcoin and cryptocurrencies in the economy. However, people don’t suddenly accept big changes. You have to start putting the news little by little.

Our economy is very old, with very old laws. We need something new. If you think about it, virtual currencies are already being inserted. But as I said, it can’t be all at once!

Take a look at PIX*. Is the Central Bank of Brazil trying to prepare us for digital currencies? You need to create a key to use PIX. It works every day, hour, weekends and holidays, just like the crypto world.

We are being prepared. One change at a time, very small, until we reach the future goal. Then, when everyone is familiar with the PIX, will there not be another change? Like:

“Here we have the cryptocurrency Tether (USDT), which is equal to 1 dollar. You use it just like PIX”.

You see? PIX is a preparation for the future. It is being the middle ground for the future that has started now!

* PIX: in Brazil, it is a new tool for payments and transfers between banks, which works 24/7, even on holidays. Before PIX, all bank transactions were made during business hours, Monday through Friday, except on holidays. This made transactions slow and expensive.

Do you agree with the line of thought of this article? Tell us on social media or here in the comments.

Tags Altcoins, Bitcoin, Blockchain, Cryptocurrencies, Decentralized, Peer to peer

Cryptocurrencies What is

What is Bitcoin? Complete guide 2020

Autor do post Por Jéssica Gonçalves
Data de publicação outubro 24, 2020
Nenhum comentário em What is Bitcoin? Complete guide 2020

In this text, we will answer some questions, such as: what is Bitcoin? What is Bitcoin for? Is Bitcoin a bubble? Where did Bitcoin come from?

Hello guys! We are migrating our website from Wix to WordPress, so there are still some links missing, but be patient that everything will be tidy for you! ;)

WHAT IS BITCOIN?

Also called “Digital Gold”, Bitcoin is a decentralized virtual currency. First of all, Bitcoin is for peer to peer transactions. Therefore, you do not need a mediator, such as a government or bank to function. As Bitcoin technology works by cryptography, this type of digital currency has become known as cryptocurrency. Bitcoin’s acronym is BTC or XTB!

Bitcoin was created in 2008 by a person or group of people, called Satoshi Nakamoto. To this day, nobody knows who they are, it is a mystery!

What is virtual currency and altcoins?

Did you know that there is not just BTC? However, BTC is the first in this universe. Furthermore, it is the digital currency with the largest market presence so far! In this way, we give more prominence to Bitcoin.

That is, when we talk about crypto, we talk about Bitcoin and all other cryptocurrencies. You can tell that Bitcoin is a crypto, but not all crypto is Bitcoin.

You may also see the term “altcoin”. Altcoins are the alternative currencies. So all currencies other than BTC are called altcoins.

WHAT IS THE ORIGIN OF BITCOIN?

“OK, I understand what this Bitcoin is. But where did it come from?”

BTC grew out of Blockchain technology. We have a complete post on this topic and I recommend reading: “What is Blockchain?“.

What is Blockchain?

In short, Blockchain is a global ledger. Everything that happens on the BTC network is written on the Blockchain. These records are made from the oldest to the newest.

One transaction after another, composing blocks in the network. And that is where the name “Blockchain” comes from: it is a chain of blocks containing data and transactions.

And who compiles all this data? The miners! They are the ones who use super computers that execute and validate each transaction, having the network currency as a prize. For example:

The Bitcoin Blockchain gives prizes in BTC (Bitcoin currency);
Ethereum’s Blockchain gives awards in ETH (Ethereum currency);
And so on.

What is Blockchain? Global point-to-point technology ledger

WHAT IS BTC FOR?

Bitcoin serves 2 basic functions:

Payments; and
To invest or trading.

Bitcoin as payment

You can accept BTC as payment for anything you want, such as:

To receive for a debt;
Receive for a service;
Payment for products sold in physical or virtual store;
Or even to get donations.

Nowadays, if you are going to receive money, you are likely to have to declare income tax. If you go to the bank, you may have to pay the transfer fee, which is not very cheap!

And if you receive by card, in addition to the time, you will still pay for the card machine! Not counting the commission. In other words, you cannot escape the fees and mediation in this current system.

INVEST IN BITCOIN

Now comes the part that everyone wants to know: how to invest in Bitcoin?

Before thinking about how to make money with BTC, you should ask yourself first: is it safe to invest in cryptocurrencies?

The answer is: no!

Holding Bitcoin (HODL)

However … you can get very rich in this market, yes! Through HODL and trading with virtual currencies!

I’ll explain: see the graph below, which shows the price of Bitcoin in Dollars (USD) from 2013 to 2020:

In April 2013, 1 BTC cost ~ $ 134;
Bitcoin’s quote today, as I write the article, is ~ $ 13,675.

Bitcoin in trading means:

Whoever bought $ 100 in Bitcoin in 2013 and hedl it until today, has around to $ 10,000! That is, this person made a profit of $ 9,900 in 7 years without doing ANYTHING!

Now, calculate how much a person who invested $ 5,000 at the same time, profited:

With $ 5,000 you could buy 37 BTC at the time;
Today, 37 BTC = US$ 510,000;
Therefore, the profit is $ 505,000 in 7 years,

Is there still time to invest in Bitcoin?

“Ah! But if I didn’t buy Bitcoin in 2013, then did I miss the chance to get rich with crypto assets?”

Of course not! I am giving a historical example, with data. But there is still soooo much to come in the crypto universe! Continue here in the text with me, about investing in Bitcoin and cryptocurrencies.

“But you just said investing in altcoins is not safe! And you still want me to invest anyway?”

So, dear reader, the investment is not really safe, it is high risk. There is no way to guarantee returns! But yes, I, Jessica, would like to help you on this mission. But I’ll talk about the risks later.

The origin of the term “HODL”

Hodlers buy active crypto and “forget” in a wallet, so that many years later, they can realize their profits. Below, I leave the origin of the term. The message is hilarious because he was drunk! If you want to check, just click here to access the forum with the origin of the term HODL.

Hold on for dear life!

The term became so famous that it even made sense of the lyrics! Hold On for Dear Life. Which refers to the message of keeping or clinging to something as if your life depends on it. In the case of virtual currencies, it is saving, because in the future it will be worth more money than today!

Investing in Bitcoin and cryptocurrencies by trading

Now comes the big fever of the moment: trading.

Trading has been around for a long time, before Bitcoin! It consists of the technique of buying an asset when the price is low and selling when it is high. Just that.

Trading already exists, for example, on the stock exchange with an Apple stock. In the same way that this stock goes through analysis and is traded, it happens with cryptocurrencies!

The cryptocurrency market is volatile!

The big chance we see in digital currencies is that the crypto market is super volatile. That is, it varies too much in a short period of time compared to the “common” market (stock exchange).

And this is where the danger lives!

Remember that I said that investing in Bitcoin is not safe? That’s why: just as he can blow the price up, he can fall. So you need a lot of knowledge in technical and fundamental analysis, before risking your money on this adventure!