Cryptocurrencies and Mining

What are Cryptocurrencies?

Cryptocurrencies+and+Mining

What are Cryptocurrencies?

Crypto is a form of payment that can be exchanged online for a product or even a job! Basically, it’s like electronic money. Crypto works using a technology called blockchain. Blockchain is a decentralized ledger that is spread across many computers that manages and remembers your or anybody’s  transactions. That makes it really safe, because your information isn’t held in any one place but in zillions of places. That’s why nany people like it. Because  of its security.  

There are many types of cryptocurrencies, the most famous of which is Bitcoin. You may have heard of Bitcoin because of its sudden boom in price.  Bitcoin was created in January of 2009 by Satoshi Nakamoto. One year ago Bitcoin was at $9,000; now it’s at $54,000. Originally, Bitcoin was less than $400 in price, and now it’s at $54,000! That’s a 13400% increase in price! That’s Crazy!

 Ok that’s enough about Bitcoin, now let’s talk about the crypto that everybody is talking about today: Dogecoin! Dogecoin started out as a meme about a dog Billy Markus came up with around eight years ago. At that time Dogecoin was worth around $0.00001.  Now it’s worth around $0.557! Even if 55 cents does not seem like the largest amount of money, if you do the math, if you had invested $100 six months ago now you would have $1800! When you think of it that way, it’s a lot of money. Elon Musk, a very smart guy, the guy that owns Tesla,  invested $1 billion Dogecoin and his investment made the price of Dogecoin go up. This may surprise you, but it was not magic.

Next we have Ethereum. This is the second most well known crypto. Created by a 27-year-old Russian Canadian programmer named Vitalik Buterin. Its price has gone from $8 in 2016 to $3,453 this week. From what I’ve researched, this crypto is the most complicated of all because it can be used for things other than payments and the creator is now working on Ethereum 2.

The last crypto we will talk about is Litecoin. Litecoin is a cryptocurrency created in October of 2011 by Charles  Lee.  Litecoin like Bitcoin is an open source cryptocurrency not owned by anybody. I have personally invested in Litecoin . Its price is usually around $230, which is the price I invested in. Right now it’s over $340! So I made $110 in 1 week, or 47%!, That’s not bad. Litecoin was created 4 years ago in 2016 at $3, so you would have made a lot of money if you had invested then. Litecoin is not as well known as the other 3 currencies, but it is one of my favorites because of the crazy daily price changes. Some people think that Litecoin will reach $10,000 before 2022! Imagine that!

Finally, let’s talk about crypto mining. Crypto mining is when you use computing power to decode an algorithm and generate coins. The money that you make depends on the computing power (i.e. graphics card) that you have, the price of the coin that you are mining, and the complexity of the algorithm of each coin. There are many types of graphics cards (G.P.U. for short). The two main companies that make them are Nvidia and AMD. The range of U.S. dollars you will get by mining for 24 hours ranges from $0.01 to thousands of dollars, depending on the hardware you have. I built a PC for mining. I currently generate $2 a day from mining, but there is a big cost associated with mining and that is electricity. I estimate that you have to spend somewhere between 20¢ and 50¢ for every $2 in mining. As a result, there are lots of people wanting to mine. Also, the graphics cards from both companies are unavailable and used cards are being sold for more than the MSRP. 

Thank you for learning about cryptocurrencies! Now you should go and do some research to find out if you should invest in crypto.

Invest wisely.

Bye!

 

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