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The Cryptocurrency August Reader

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1463146108811{padding-bottom: 20px !important;}”][vc_column offset=”vc_col-lg-offset-1 vc_col-lg-10 vc_col-md-offset-1 vc_col-md-10″][vc_column_text][dropcaps type=’normal’ font_size=’45’ color=’#191919′ background_color=” border_color=”]I[/dropcaps]f you haven’t started tracking Cryptocurrency exchange prices it might be wise to start doing so. What exactly is a cryptocurrency? There are many definitions around but the simple layman term is that it is a currency built on a blockchain. Terms such as “Coin”, “Notes” are commonly used. The cryptography used allows users to utilize open ledger in order to check transactions. The definition of a blockchain is beyond the scope of this weekly update but it is important to the rise of cryptocurrencies.[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1463146163185{padding-top: 50px !important;padding-bottom: 44px !important;}”][vc_column width=”1/3″][vc_single_image image=”63″ img_size=”full” qode_css_animation=””][vc_separator type=”transparent” thickness=”0″ up=”0″ down=”30″][/vc_column][vc_column width=”1/3″][vc_single_image image=”64″ img_size=”full” qode_css_animation=””][vc_separator type=”transparent” thickness=”0″ up=”0″ down=”30″][/vc_column][vc_column width=”1/3″][vc_single_image image=”65″ img_size=”full” qode_css_animation=””][vc_separator type=”transparent” thickness=”0″ up=”0″ down=”30″][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1463146184322{padding-bottom: 70px !important;}”][vc_column offset=”vc_col-lg-offset-1 vc_col-lg-10 vc_col-md-offset-1 vc_col-md-10″][vc_column_text]Cryptocurrencies

  1. Fungibility – Current coins do it very well. Some cryptocurrencies are divisible up to 18 decimal places and can be coded to unlimited decimal units when required. Although existing cryptocurrencies have approximately 12 to 18 decimal places.
  2. Medium of Exchange – Cryptocurrencies must be able to be accepted in exchange for goods and services by users that adopt it. As observed, cryptocurrencies have proved its effectiveness in the role. Its cryptographic function advocates this role
  3. Anonymity – Cryptocurrencies such a Bitcoin have cryptography strengths derived from their algorithm. A most fundamental variant is the 256SHA. From my personal recollection, 1SHA has been compromised before. But it will take millions of years to the current level of technology to break 256SHA. We should not that tightening regulations have made Cryptocurrencies much safer/dangerous depending on which type the user is. Compromises of identity tend to occur when interacting with service providers that enable the user to utilize that cryptocurrency. Examples are exchanges that allow individuals to purchase Cryptocurrencies with their credit card. Or the usage of macro-level Cryptocurrencies that at the same time serve as a forum [Most famously Steemit]. Above all, not using a VPN when accessing the world wide web allows for unencrypted information to travel from end to end, compromising the user’s identity.
  4. Store of Value – Although some might argue that cryptocurrency has the store of value built into the algorithm of the cryptocurrency. It can only serve partially as one. A flaw is that current developments such as Proof of Work[PoW] and Proof of Stake[PoS] require a network of users to protect the framework from attacks. Additionally, if sufficient users leave the cryptocurrency it will lose any future purchasing power as it is not backed by any sovereign nation or assets. Cryptocurrencies on current design require that I intend to discuss Proofs in the next edition of the Reader.

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The classical or orthodox gold standard alone is a truly effective check on the power of the government to inflate the currency. Without such a check all other constitutional safeguards can be rendered vain.

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– von Mises

[/vc_column_text][vc_separator type=”transparent” thickness=”0″ up=”0″ down=”174″][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1463146237211{padding-top: 74px !important;}”][vc_column offset=”vc_col-lg-offset-1 vc_col-lg-10 vc_col-md-offset-1 vc_col-md-10″][vc_column_text]Price tracking apps like CoinCap [from the developers of Shapeshift.io] or Blockfolio [an android app] Allows users to track the volatility of the major coins. Charts have been readily available for many years now. Although it is obvious to many, the market capitalization of Cryptocurrencies has been steadily growing as more and more investors are hearing about this mythical B called Bitcoin and the Ethereum DAO concept. Although they are the main leaders the markets of today consist of more than just these two mediums. Coin cap tracks the top 1,000 Cryptocurrencies and lists them by market capitalization.

Cryptocurrencies that have not been adopted or recognized as a mainstream coin are commonly referred to as “altcoins.”

 

Find out more about Cryptoeconomics here: Cryptoeconomics Asia’s Cryptoeconomics 101[/vc_column_text][/vc_column][/vc_row]