What Is the Flippening?

People active in bitcoin and altcoin circles are often referring to a trend known as

Sourced through Scoop.it from: themerkle.com

Don’t get stuck on bitcoin. The cryptocurrency market is starting to shift. Those that are knowledgeable will ride the wave up!

Ways to Know About the Next Pump

Because of the unregulated nature of cryptocurrency, pumps and dumps are inevitable. While most people fall prey to this volatility by either buying into the pump or selling into the dump, causing sub

Sourced through Scoop.it from: themerkle.com

Bitcoin: A new economic paradigm for wealth creation

Bitcoin a new paradigm

Before you dismiss bitcoin as a fad, ask yourself do you know the definitions money, currency, and fiat currency? Ask yourself, what is the difference between a $20 bill and a $100-dollar bill? If you, can’t answer those questions then you owe it to yourself to keep reading. Why? Because you are participating in the greatest transfer of wealth the world has ever known.

With bitcoin ushering in a new paradigm you have a chance to participate in this transfer in a truly democratic and decentralized way based on meritocracy and not a top-down model that we have been accustomed too.Bitcoin more than money

It’s a completely new and revolutionary model that the current establishment either doesn’t understand or doesn’t like. Either way, they speak of it as something you should fear and dismiss.

So what is many? According to the constitution of the United States, the only true money is gold and silver.

Money is a medium of exchange that is portable, durable, divisible, and fungible (interchangeable).

One of the major keys to consider here is that money is a medium of exchange and has to possess the four properties to qualify as money. It can be anything we want it to be. What has been accepted as money around the world for thousands of years is gold and silver.

The constitution specifically says this is the only true money. This was the case until 1913. This is when the federal reserve was created along with the IRS. One cannot exist without the other.

What are other types of currency?

With the creation of these two institutions, we moved from using money to currency. Generally speaking, currency is something that is generally accepted or in use. In an economic system, an example of currency is the dollar, the Euro and other forms of currency we use but don’t consider them as currency like credit cards, gift cards, EBT cards etc. They become the medium of exchange. They are portable, durable, divisible, and fungible (interchangeable). They are also digital. Where does the perception that a dollar or a Euro has value come from?

They come from a governmental agency declaring that those currencies are legal tender. Legal tender means coins or bank notes that must be accepted if offered in payment of a debt. Who has the power to decide legal tender? The government of course! The dollar and the Euro are declared legal tender by governments. This is the definition of a “fiat currency.” In other words, the government decided what would be used for the exchange of payment of debt.

You work forty hours a week, the company owes you payment and depending on which country you’re living in, you get paid in dollars or Euros to satisfy the debt. Often times you don’t get coins and notes. You simply use the currency digitally. It is something you are familiar with and accept every day.

It’s all part of a central banking system controlled from the top down. In other words, those that created the system stand to benefit the most from the system. That system has shut out and impoverished most of the world for centuries.

From being robbed of wealth to a revolution

You may remember the economic crash of 2008 when the banking and real estate industry was hit hard. Actually, the people that lost pensions and their homes were hit hard. The banks got bailed out so their businesses wouldn’t go under. But millions of people worldwide lost their retirement nest egg and their homes. It was a robbery that no banker to this day has been prosecuted for in the United States!

The next year (2009), a new revolution in economics was ushered in with the invention of bitcoin and digital currency.

It has taken a few years for it to get a firm foothold around the world.

I asked you some questions, in the beginning, to make you think about what money really is and how it becomes valuable. The reason being because bitcoin and cryptocurrency is a new economic paradigm that is about the change the world!Banking system obsolete reggie middleton

It is still relatively new. It has created millionaires literally overnight in many instances. However, cryptocurrency is only the tip of the iceberg.

The technology that created cryptocurrency is so dynamic that many industries it will spawn have yet to be thought of and created. Think about the internet in 1994. Could you have imagined everything we do on the internet today back then?

Will you sit by and skeptically watch?

Could you have imagined then how email would change the postal service, or how amazon would change shopping, or how eBay would change selling the items you had in the garage?

Cryptocurrency is spawning a new global economy. The technology that spawned cryptocurrency will change governments and industries like banking with less fees and decentralized accounts, finance by doing crowdsourcing, micro-loans and peer-to-peer lending, title records and medical records plus much much more that we have yet to think about.

The generation that invents the technology can only think in terms of what it can disrupt. The next generation invents the new industries. Like from electronic email as a faster way to communicate, to Facebook and real-time communication and chat.

So what is the difference between a twenty dollar bill and a one hundred dollar bill? Only your belief about what value either bill has. They are printed on the same paper. In your bank about they are only digital representations of value.

You becoming more educated about this new revolutionary industry is the key to you capitalizing on the redistribution of wealth. This transfer will occur over the next ten to twenty years. Remember the dot com boom? There is about to be a blockchain boom lead by bitcoin cryptocurrency and the blockchain technology that it has spawned. Will you skeptically sit on the sideline? Or learn more so you can make an educated decision on where to jump in or not? Click here for cryptocurrency education.

Photo source: insidebitcoins.com

Beginner: What is a blockchain in relation to cryptocurrency?

what is a blockchain

What is a blockchain in relation to cryptocurrency? I will use a couple of non-technical analogies to express the blockchain conceptually.

is to think of how the blockchain relates to the cryptocurrency industry overall. The first analogy is to think of a blockchain and cryptocurrency like a cake. Cakes are a category of dessert.  A blockchain is a category of databases.  All cakes essentially have the same ingredients or they wouldn’t be a cake.

Cryptocurrency in relation to the blockchain is the icing on the cake. Without all the ingredients coming together a certain way, there would be no cake and no need for icing. You don’t really need to break down the ingredients in the blockchain to understand cryptocurrency at this point.

However, understanding what the blockchain is and how it relates to cryptocurrency conceptually will help you make many more connections to possible investing opportunities.

Going down a little deeper into the technical aspect and how blockchain work is important as well. Technically speaking a blockchain is a type of database. Well, what is a database?

What is the blockchain?

With digital technology, it helps to think in terms of how it relates to or mimics the physical world. For example, a blockchain is a type of database in the digital world. A database, in a way, is like filing cabinets we use in the office. Therefore the second analogy is to think of a filing cabinet and how you use it to store information.

You have different drawers in the filing cabinet with different files organized in a certain way.  for example,  the files can be organized in alphabetical order.

When you want to retrieve a file (data), you think about what drawer it is located in, open the drawer and take out or retrieve the file. Think of a database as many many filing cabinets all chained or grouped together. using this analogy you can equate one drawer of the filing cabinet to one block withing the blockchain. Once in place, these blocks never move. ownership of the information on the blocks can be transferred over and over to different individuals.

Each time you go anywhere on the internet looking for information you are accessing a database that holds the information. The specific information you retrieve is equivalent to retrieving a file from the digital cabinet.

A blockchain is a is like a file in a cabinet with information in it. Each “block” can have a bundle or group of files in it. The information in the files cannot be altered by anyone. “it is tamper proof.” Being tamper proof or “unhackable” was the secret sauce that enabled bitcoin and currencies to begin.

In summary

How do blockchain and cryptocurrency relate to each other?

Think of them like cake (blockchain) with icing (cryptocurrency) on top.

What is a blockchain?

You can think of it as a digital drawer in a filing cabinet with many hundreds and millions filing cabinets all chained together.

Bitcoin and blockchain explained for the non-technical

 bitcoin and blockchain explained non-technical

What are bitcoin and blockchain? Here is a non-technical analogy to explain it conceptually.

Imagine you are going to bake a cake. You need a number of ingredients for the cake. You need flour, eggs, sugar, etc. Once you mix all the ingredients you pour the batter into the pan and put it in the oven to bake. once the cake is finished you put your icing of choice on it.

Every cake starts out with the same ingredients or it wouldn’t be possible for it to become cake. You can choose any of your favorite icings to put on the cake. The icings might change the flavor a little but the cake is the underlying component that is the same.

My analogy is, in essence, the cryptocurrency industry. The blockchain technology is the cake.  The cryptocurrency is the icing on the cake. The desire to get wealthy is the heat that bakes the cake and gives bitcoin value.

As someone new to the cryptocurrency game you must understand the difference between buying and investing in the cake (the blockchain technology) and getting tantalized and duped by those that are selling the icing.

It is estimated that ninety-nine percent of the cryptocurrencies (icing) on the market are no more than pump-and-dump currencies. in other words, the sellers of the currency will pump you up to buy the currencies which temporarily drives up the price. When the price gets high enough the early investors then dump the currency and leave those late to the game holding a worthless bag of promises.

The icing is only one flavor of many possibilities

I am not in anyway qualified to give investment advice. I do not have a securities license. However, I am a Certified Cryptocurrency Specialist and in addition to my knowledge, I do have common sense.

I say that to say this, educate yourself on the industry. Don’t get caught up in the oven and get burned. There is a lot of icing (cryptocurrencies) being slapped on different cakes (blockchains).

Bitcoin the cryptocurrency is an icing on its blockchain cake. Think of the bitcoin blockchain as a bundt cake.

Ethereum is another blockchain that has many other cryptocurrencies using its technology.

Think of the Ethereum blockchain as a “seven up cake.” Some of the ingredients are a little different but it’s still a cake (blockchain) different from Bitcoin.

Once you understand the blockchain technology, you can discern what type of cryptocurrency you would like to study and invest in.

What are bitcoin and blockchain?

To sum up the analogy.

Make no mistake that cryptocurrency is the future of money. Bitcoin (capital /B/) is a cake or blockchain that has its icing or cryptocurrency called bitcoin (lower case /b/). Like all cryptocurrencies, bitcoin is a by-product of the blockchain technology. Without the blockchain ingredients coming together, there would be no possibility of a secure digital cryptocurrency.

There have been other cryptocurrencies before bitcoin that failed because the ingredients were not there or not put together the right way.

Now that you can understand the industry of cryptocurrency and blockchain conceptually it’s time to get educated.