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.
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.
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.
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.
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.
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.
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.