Advertising
Advertising

The Evolution of Cryptocurrency And How To Tap Into It

The Evolution of Cryptocurrency And How To Tap Into It

Cryptocurrency has actually been in existence for over 10 years. Granted, the term ‘cryptocurrency’ was as good as obscure before Bitcoin emerged, it still existed.

The first pretty known try at cryptocurrencies was in Holland in the early 90s. Back then, gas stations were being raided regularly and this problem caused headaches for the whole community, particularly the gas station owners who didn’t feel good with putting guards’ lives at risk for the protection of their own businesses and establishments. Regardless of this, they also had to make continuous profits, meaning they had to stay open night after night, further exposing themselves to criminals and thugs.

The idea came to put cash into smartcards and like that, e-cash was invented. This invention not only reduced the risk of robbery for the gas stations, it also made truck and car drivers feel safer on the road and travel light. This led to Albert Heijn, the main gas retailer, pressing banks to come up with a means of allowing shoppers and consumers to pay exactly from their bank accounts. This move led to the creation of the Point Of Sales (POS) machine which has become ubiquitous today.

Advertising

Jump to about 25 years later. Cash technologies began being initiated by internet pioneers David Chaum and Stefan Bands. Handcash, a control scheme for spams, was created by Andy Back. However, digital cryptocurrencies were first proposed by Wei Dai and Nick Szabo, who developed b-money and bit gold respectively. Both made use of handcash as their work proof algorithm.

These innovations led to the creation of cryptocurrencies which are used for transactions today, especially Bitcoin (created by Satoshi Nakamoto). When first created, Bitcoin was worth about $0.00001. However, since its creation, Bitcoin (and frankly, other cryptocurrencies) has increased in value immensely. Cryptocurrencies are of different types, each patronized based on the preferences and transactions intended by the user.

Making Money With Cryptocurrencies

Making money follows pretty much the same principles when it comes to cryptocurrencies. For the sake of streamlining, I’ll talk about using Bitcoin, the most popular and widely used.

Advertising

Now, before we discuss any money-making tactics, it is worth remembering that as of this publication, the value of 1 Bitcoin (1BTC) is $900. Hopefully, this will help you to realize the implication of the techniques we’ll discuss and just how rich they could make you.

Direct Investment

The most widely used method of making money through Bitcoin is through direct investment. The process is quite direct, actually. You create a wallet and begin buying Bitcoins (exchanging Bitcoins for money). As you get more Bitcoins, you could wait till the currency gains a higher cash exchange rate, use your Bitcoins in making other transactions or simply do both.

A Website About Bitcoin

An alternative is to set up a website that’s basically about Bitcoin. The site gives an in-depth explanation on the ins and outs of effectively using and managing a Bitcoin account. While you make money from ads and other promotions on your site, you also generate income by opening accounts while collecting a commission, offering account management services (for a fee, of course) and basically becoming a financial advisor to your clients.

Advertising

To do this effectively however, you have to have a wide and broad knowledge about Bitcoin yourself. The last thing you’ll want in this career line is to be sub-par and offer your clients inadequate services.

Mining

The third way to generate income from Bitcoin is to simply mine it (that’s right, you can make Bitcoin!). This method is the money-generating method that’s been affiliated with Bitcoin for the longest time. Bitcoins are mined through solving mind-numbing algorithms and codes that create blocks, which are in turn compiled to the open ledger. This ledger comprises every trade, purchase and transaction ever made using Bitcoin.

Without those who mine, Bitcoin would go extinct sooner or later. The system needs miners to keep expanding and functioning efficiently. As a new block is created, the miner responsible is gifted with Bitcoins for his troubles. This reward system serves as an incentive for new miners to spring up, thereby keeping the entire system alive and propelling the operation further.

Advertising

The mining of Bitcoin has become a more stressful process over time, due to its increased worth, patronage and the complexity of its algorithms. From easily mining on your home PC, it has evolved to a process where you’ll either have to buy your own mining hardware, get a laptop with insane specs or merge with other miners in a mining pool that uses the collective power of you all.

Mining a Bitcoin is an extremely intensive process and it requires a massive amount of processing power on your computer. This is to verify transactions on ledgers and ensure the smooth running of the system, which is daily getting increasingly crowded.

The same principles hold for most transaction-based and investment-centred cryptocurrencies. Even apart from Bitcoin, other cryptos have large values. Tapping in and making money through them is very easy.

More by this author

Tanvir Zafar

Software Engineer at GCUF

Struggling With Quick Healthy Breakfast Options? Start Your Morning With These 10 Healthy Muffins Ideas! Improve The Efficiency Of your Workout by Adding These 10+ Foods That Build Muscle Improve The Efficiency Of Your Workout by Adding These 10+ Foods That Build Muscle Seeking Help for Family Problems: List of Family Counseling Providers to Consider stuffy-nose Home Remedies For Stuffy Nose – From Instant Relief to Long-Term Improvements. Top 10 Most Effective Online Tools Tailored for Students

Trending in Money

1 How Being Smart With Your Money Leads to Financial Success 2 17 Practical Money Skills that Will Set You Up for Early Retirement 3 25 Things to Sell to Make Extra Money Easily 4 How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide) 5 30 Fun Things To Do With Your Friends Without Spending Much

Read Next

Advertising
Advertising

Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

Advertising

So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

Advertising

Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

Advertising

You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

Advertising

Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

Read Next