Ecomony

TRYING TO MOVE IN THE MIDDLE OF THE CRYPTOCURRENCY JUNGLE

Given that I have never invested in cryptocurrency and perhaps I will never invest, the fact that the new generations invest their money in this economic jungle leads me to try to understand why there is so much interest in investing in a field that a few years ago , it didn’t exist.
Before delving into this dark forest, a brief history of the first cryptocurrency, that is, the Bit Coin.

Before describing the evolution of the Blockchain starting from the birth of Bitcoin, however, a necessary premise is necessary regarding what Bitcoin is and how it works:

Bitcoin represents a protocol that uses cryptographic technologies, computer networks and mechanism design to create a decentralized, secure and programmable system of recording and exchanging value, characterized by its immutable and censorship-resistant nature.

1. Birth of Bitcoin
Bitcoin was born at the end of 2008, when Satoshi Nakamoto – a person or group of people whose identity is still unknown – published a white paper explaining his idea of a peer-to-peer (P2P) cryptographic virtual currency without intermediaries, governed by algorithms. The proposed idea is a real declaration of war on the banking world, which in that period had been overwhelmed by a profound crisis.

2. Initial relationships with the press and regulators
However, the first problems arose. In 2010-2011 Bitcoin, due to its use of pseudonyms and the absence of a supervisory authority, was associated with the illegal market, from drugs to terrorism, and for this reason it was relegated to a niche phenomenon of little interest to the world of the business.

Regulators in various nations are starting to wonder at this point how Bitcoin should be considered. Some recognize it as a currency, some as a financial instrument and still others prohibit it or advise banks against its use.

3. From Bitcoin to Blockchain
Since 2014, a phase has begun in which interest begins to shift towards the technology behind Bitcoin: the Blockchain. Thus, platforms began to emerge that exploit some of the founding principles of Bitcoin: Ethereum, a platform oriented towards the creation of smart contracts, and Ripple, created in 2012 to facilitate interbank payments in different currencies, which received support from the first banks.

R3 was also born in 2015, a consortium made up of the most important world banks, which develops the Corda platform. Also in 2015, the Linux foundation began working on the Hyperledger project for the collaborative development of a platform that can also be used by companies. We therefore arrive at a crossroads: there are those who believe only in cryptocurrencies and those who believe that the underlying technology can also be applied to other areas.

4. Blockchain becomes a trend
In 2016, the Blockchain trend established itself. The press begins to talk about it and it is increasingly presented in clear separation from Bitcoin (at the end of 2015 The Economist dedicated its cover to it and included it among the technologies that will revolutionize digital in the coming years). As a consequence of this media hype, companies’ awareness of Blockchain begins to increase and numerous experiments are started.
​5. Blockchain and cryptocurrencies between oscillations and doubts
At the end of 2017 we enter the so-called disillusionment phase of Gartner’s hype cycle: the first doubts arise about the revolutionary potential of Blockchain technology, which struggles to realize the promises made, while cryptocurrencies continue to fluctuate in their value. The validation process of the Bitcoin network (the so-called mining process) presents some limits as the network grows: slowness in carrying out a transaction, high energy consumption for validation and risk of centralization of the computers dedicated to this activity).

6. The “crypto-winter”
After the strong media attention received in 2017, driven by the growth of their price, 2018 is characterized by an unstoppable collapse in terms of capitalisation. The Blockchain community coins a new term to define this moment: “crypto-winter”. Winter, however, has not arrived for the technology behind cryptocurrencies. Blockchain, in fact, continues to arouse great interest from companies. The technology evolves, thanks also to the efforts made by the developer communities that revolve around public Blockchains.

7. The entry of the institutions
In 2020 and 2021 we are witnessing an explosion of central bank projects for the creation of their own digital currencies, the so-called Central Banks Digital Currencies (or CBDCs). This new application of technology seems to be making its way around the world. Around 40% of central banks have in fact started a research project on the issuance of a possible CBDC.

In the meantime, the first signs of a possible legal framework for Blockchains and cryptocurrencies, such as Bitcoin, are starting to arrive, with the European Commission including a regulation on crypto-assets within the Digital Finance Package.

8. The innovation of public Blockchains
2021 and the first half of 2022 are instead characterized by a strong innovative push. Decentralized applications (DApps, acronym for Decentralized Applications) are spreading, in particular those in the financial sector. In fact, in November 2021, decentralized finance applications (DeFi, acronym for Decentralized Finance) managed the equivalent of 178 billion dollars. In addition to DApps, non-fungible tokens (NFT, acronym for Non-Fungible Token) are being introduced.

This new technical standard enables several new use cases, from the tokenization of financial assets to collecting phenomena. In fact, the collectibles market is exploding among private users: usually created in collections of variable numbers, they replicate collecting phenomena by adding unique characteristics to multimedia content, especially concerning works of art, music and online games. In the second half of 2022, however, the use of the term Web3 begins to spread, which describes a new decentralized version of the web based on Blockchain.
Now that we have a little clearer ideas, let’s see who invests in this invisible currency.
Those who risk their savings are especially young people who know about the unbridled use of their cell phones and computers and spend hours researching how to multiply their savings.
“I started investing in 2015 and in this period of time I earned about a million dollars – says Alice – but my uncle told me never to reveal how much I earn in life because you never know he’s listening to you”.

Asking whether cryptocurrencies are safe is more than legitimate, given the surge that they have seen in recent years and the difficulties governments have in regulating their exchanges. The issue of cryptocurrency security – or lack of security – will become increasingly central in the coming years, given that according to a report by Allied Market Research this market will more than triple by 2030.

For the moment, it remains difficult to answer the question of how safe cryptocurrencies actually are. There’s no denying it: there are security risks, and it’s good for you to be aware of them. First of all the extreme volatility: the prices of virtual currencies fluctuate like on a roller coaster. Second, the industry is rife with scammers trying to scam newcomers dealing with a relatively new and poorly regulated financial ecosystem.

“To understand why there is so much interest in a currency that in fact only exists virtually, we asked Alice Delarosa. a young American entrepreneur of Italian origin, who invests her savings in cryptocurrency.

“Cryptocurrencies – Alice tells me – have many ways to earn, the most common is to hold them for a long time, buy at a low price and sell at a high price, which is not very technical, but cryptocurrencies are very volatile, the risk cannot be controlled, it is easy to get caught in the market, to earn long term maintain this cycle is long! I am a relatively conservative person, even when it comes to investments, I am now trading BTC options, which consists of calculating the increase and decrease in the price of the coin over a certain period of time, which is all based on calculation. To calculate the accurate trading node, large capital costs are required, the launch of a professional calculation team will also take a long time, because the calculation to use the hash function and differential code, the use of comprehensive hash function calculation , in order to avoid risks and obtain stable returns! At the same time, but also by volume, EIA data, non-agricultural payroll data, foreign exchange conversion prices and other comprehensive analysis! And the accuracy of each calculation must be more than 95%, when the calculation accuracy is less than 95%, we will choose to give up this trading market. When I don’t trade, I put the money in my wallet into a liquidity pool that generates me come in. Generate revenue 4 times a day for free. It’s like depositing your money in a bank and receiving interest, but it’s much more profitable than what the bank generates, and it doesn’t require any manipulation, there’s no risk, and it’s very stable, and the liquidity is very good, and you can withdraw funds to your bank card at any time Just one question: how long have you been trading and whether you have lost or earned money Are you wondering how many years I have been working in this field?” Yes…You. Trade by yourself, manage your own money, or even invest for other people -” I have been in the cryptocurrency industry for 8 years now, since I started in 2015, and I personally believe that you should manage your own money investments and be in charge of your own destiny”. ” If you really want to understand the field of cryptocurrencies, then I suggest you practice the operation to understand, learning is a long process, only the practical operation will impress you, I suggest you try to practice the operation with a small amount of money, ‘I don’t promise you anything, but I definitely won’t let you operate in this field with any loss”. Last question: Over the course of 8 years, how much have you
gained or lost…. “I have made about a million dollars but my uncle told me that I have to keep it secret no matter how much money I make”.

In 2009 the Bitcoin network began to function; the community begins to grow and Bitcoin is used for the first time to purchase a good in the physical world: a pizza. In 2012, Bitcoin reached a capitalization of one billion dollars.