By Arjun Kodial, Zyad Zahra, and Ariq Uddin
Blockchain Technology and Cryptocurrency
By Arjun Kodial
Cryptocurrency is a medium of exchange, like the US dollar, and it is based on “blockchain technology.” Blockchain technology is what makes cryptocurrency so unique and allows for the recording of transactions such as sending and receiving digital assets. The blockchain is a database of information that is stored forever. Yes, forever. You can think of the blockchain as a filing cabinet full of information, and within this filing cabinet are your files, known as “blocks.” Each of one of these blocks are filled with the most recent transactions that have not been previously stored in the filing cabinet, or blockchain. The transactions mainly consist of users sending cryptocurrency to each other. Much like a file in a filing cabinet, once a block is full, the blockchain network will move on to the next block until it is full.
So basically, cryptocurrency is a digital automated bookkeeping system that records transactions and shows who owns what. What makes cryptocurrency so secure is that thousands of users participate in hosting this blockchain making it extremely hard to compromise. So instead of having one filing cabinet with all the information, there are thousands of users all around the world who each have “filing cabinets” that must store identical information and are validated by each other.
To send and receive cryptocurrencies,
users must have cryptocurrency wallets. Cryptocurrency wallets come in the form of apps you can simply download on your phone or program onto your computer.
Cryptocurrency wallets also come in the form of digital hardware for the ultimate security. You can get a cryptocurrency wallet of your own right now! To purchase or sell cryptocurrencies, you must be signed up with an exchange.
Cryptocurrency exchanges are commonly confused with wallets. Exchanges are where you use your United States Dollars to buy the cryptocurrency of your choice. Exchanges are run by private companies who facilitate the purchase such as Coinbase or Binance. The difference between an exchange and a wallet is that wallets are where you store your cryptocurrency. Kind of like with paper currency, you go to a bank to make a deposit or withdrawal and you store the cash you receive in your wallet.
There are thousands of different cryptocurrencies, and with the correct knowledge, anybody can create one. The most common cryptocurrencies you may have heard of are Bitcoin, Ethereum, or Dogecoin.
A major aspect of cryptocurrency is decentralization. A cryptocurrency is not run by a single entity, instead it is facilitated by all of its users. This is similar to the internet, as no one person owns it, but everyone can utilize it and create on it.
Why Cryptocurrency Retains Value
By Zyad Zahra
One of the most popular cryptocurrencies, Bitcoin, has a current value of 43,020 (as of 9/29/2021). This value may seem like it is not based on anything, or fake, but it has backing behind the blockchain. In fact, some may go as far as to say that the price of Bitcoin is more real than the price of stocks or USD. Bitcoin operates on the idea that it’s value is based on three main factors. There are others, but they are not applicable to this article: current supply, market demand, and cost of production. Unlike USD, which is backed behind silver or gold, Bitcoin is not, which may seem like a bad idea at first, but it is less susceptible to inflation. USD can be printed and destroyed however the government can decide, which is not good because it means they can control the price however they want.
Bitcoin on the other hand is not controlled by any single entity, it is a collection of people on the blockchain controlling it. Bitcoin price cannot artificially rise by a sudden increase in supply; a set amount of Bitcoin is set to be made at any point in time. Because USD is backed by something, if it’s backing disappears, something that only the government can control, the price of USD can rise or fall. Bitcoin has no backing, and it has no singular entity controlling it, (hence the term decentralization) and is not susceptible to an artificial rise or fall.
Bitcoin, compared to stocks, cannot be rigged. Many stockbroker agencies have taken advantage of their control over stocks and can manipulate them in certain aspects. But because Bitcoin is decentralized, it cannot be manipulated by a large entity. Much like how the price of stock goes up with demand, cryptocurrency is similar- as more people want a limited supply, the price goes up.
Finally, a cryptocurrency’s value is based on the cost of production. It takes a substantial amount of computing power to run, needs machines to control it, and electricity to run these machines. Although the term “production” is used, many cryptocurrencies are not produced like stocks or USD. Through mining (see earlier paragraph), Bitcoin can be made, and because of this, the price can fluctuate.
When to Invest into Cryptocurrencies
By Ariq Uddin
There are a lot of social media influencers saying buy this and buy that, but is what they say is true? Yes and no. Some may try to reach out to people in an effort to persuade you into buying their own cryptocurrency/product, or some may correctly guide you to buy what may return massive profits. I am here today to guide you and hopefully bring in a massive portfolio for you in the near future. Admit it or not, all humans are satisfied by money, it is after all what this world runs on. But when one loses money, one tends to blame it on others in an effort not to take the blame.
As such, a heads up notice: not all I say is 100% factual, but rather my and my colleagues’ opinion, so follow our advice at your own risk. So what is it that I am talking about that might bring huge profits towards me and you? Well, you might have guessed it, it’s a cryptocurrency! Wow, so unpredictable am I right? Corny joke aside, we have all heard the quote “Patience is a virtue”; well I’ll go over why that is important. Way back when bitcoin was first made, it was worth less than a cent, now it’s worth tens of thousands, and way back when doge was worth nothing, and was worth around 0.00000006 cents to now
being worth approximately 24 cents, do you see what I am trying to tell you? If not, now you know why and how bitcoin and dogecoin millionaires came to be? That was because they invested in it when it was incredibly cheap.
And what crypto currency is dirt cheap right now? Shiba INU. As a reference, if you were to invest $118.34 (how much I invested), you would have approximately 14,734,890 coins of Shiba INU., and if Shiba INU, were to hit 1 dollar, it would make your $118 to $14,734,890. But, you might say, there’s no way that any cryptocurrency or stock can reach that high.
True, but that is where patience also comes in. Many analysts (including me) have measured Shiba INU.’s potential. It has the possibility of going into the high 60’s (centwise) in the next ten to twenty years, so like I said, do it at your own risk. It is not guaranteed that it will even go to 1 cent in the next 10 or 20 years but from where we’re analyzing, I think that it very much has that potential as it was able to go up 2 million percent at a rapid pace of a few weeks.
Remember, what you’re investing should be a small amount, (as I’d recommend investing small as a fail-safe) because it’s better to be safe than sorry. And that concludes all of our article on cryptocurrency today.
I hope you had a good time reading this article and perhaps learned a thing or two. If you’re interested in what we had to say in the end, don’t worry as it won’t be the last time we make a report on cryptocurrency and investing.
