INTRODUCTION TO CRYPTO FOR THE MASSES

by: Donny Letson, Procryptix, LLC
donny.letson@procryptix.com
https://procryptix.com/
Sept 10, 2018

When I stop people on the street and ask them about Bitcoin or cryptocurrency or blockchain, most don’t know what I’m talking about, some say something about the black market or dark web and others say they’ve heard about them but don’t know anything about them. There are only a select few that will reciprocate my feelings and interest in this industry. And even among them, it can be hard to find someone that has clear knowledge on the subjects.

Most of this response comes from not being exposed to these terms, however, there is no scarcity of negative reports. Blockchain is being used in the interconnected space to decentralize control of the value of organically preferred currencies. Knowing this makes one realize this new technology is a threat to the status quo of representing value, especially for the elite and those that control the money supply. Most negative reports leave out the fact that the fiat currency these controllers prefer can be found in dark places also. Those of us that are in the know realize there will always be a negative information campaign against this technology and the best way to repel those sensational attacks is to educate the masses about it. That is what I aim to accomplish with this article. More, in depth, technical articles will come later.

Blockchain is the latest and greatest technology and industry for computer based devices and their need to encrypt, record and validate transactions globally with speed and accuracy. Security in the form of encryption is at the heart of blockchain. In this industry, crypto, or cryptocurrency, is filling the need to represent value virtually in the connected world on these blockchains and in their applications. Smart technology is infiltrating every part of our lives and the more it consumes, the more the need to transfer and trade value personally and commercially online and from device to device. Cryptocurrency fits this bill nicely and it’s been around since 2009, and has been tried and true.

Cryptocurrencies are just coded scripts, or programs, running on these blockchains and they are referred to as tokens or coins. These coins are ‘minted’ to represent the respective values these blockchains create or they can represent hard assets in the virtual world. Cryptocurrencies can be great assets and increase in value that, in turn, fuel the diverse infrastructures needed in the industry. They can also lose value and put pressure on the industry.

One example of crypto could be that a startup company can create an app that runs an auction for real estate. A bidder can bid from home in the live auction. The app is a blockchain with coins that represent the value of the bid. A bidder deposits a currency, this could be fiat or another coin from another blockchain. This deposit can represent his highest bid he wants to do. As soon as all bidders deposit, the auction starts in the app. Each bidder can then select to bid at a price and the deposited value in reserve represented by the coin can be tapped instantly to deposit into the ‘bid account’ to verify the bidder has enough assets to cover the bid. If a higher bid is placed and validated, the lower bid is returned. This can be done multiple times with great speed and accuracy and security so all involved can be assured of the validity of all bids and deposits. All that is needed is a trusted source to verify the asset value being deposited. Validation is done by checking the data in the blockchains behind the assets or by banks, etc, when dealing with fiat.

There are over 1595 coins and the values of all these coins run the gamut. For instance, Bitcoin (BTC) has a market capitalization (value of all coins in circulation) of about $110,000,000,000 with each coin worth about $6,200.00 as of September 8, 2018. Dentacoin’s (DCN) market cap is about $82,000,000 and each coin is worth about $0.000265. Data is from CoinCap app.

With varying values created by these blockchains and their cryptocurrencies comes a desire and demand to trade these coins against each other to make a profit. Just like trading stocks on the stock exchange. Users need tools to facilitate these trades and platforms to trade in like exchanges and convertors. These tools are a new industry I call Crypto Trading Technology. But that subject is for another article I will be posting later.

The last point I am going to make to each of you is that if you understand fiat currency with forced value by governments like the US Dollar or the Euro or Yen, then you understand crypto. The only difference is cryptocurrency is more organic in value and, therefore, more volatile and in need of your personal responsibility. The tenants of supply and demand and market demands still apply. If you accept that higher level of responsibility through research and patience and planning, believe me, you will reap the benefits of the value you create and protect. You will also have something no other entity can use to control you. Isn’t that the way it is supposed to be?