This post The Secret $20 Bitcoin Blueprint appeared first on Daily Reckoning.
Today, I’m going to introduce you to the red-hot cryptocurrency market. Perhaps you’ve heard of Bitcoin or some other cryptocurrencies, but maybe they seem too mysterious or shadowy for your tastes, not something you’d like to invest in.
Hopefully I can clear up some of that mystery today, because this is a market in which you can potentially amass a quick fortune.
For example, some lesser-known cryptocurrencies have skyrocketed between 12,000% and 56,000% over the past few weeks. Just think of how even a small investment in some of these cryptocurrencies could do for you.
And the good news is that you don’t need to know anything about Bitcoin or any other cryptocurrencies to take part in the bonanza. And you can get started with as little as $20.
In fact, what I call “penny” cryptocurrencies are one of the last legal ways for small investors to grow rich, starting with just a few dollars in your pocket.
OK, so maybe you’re wondering right now just what is a cryptocurrency exactly. Here are the basics…
Essentially, a cryptocurrency is a digital currency that operates outside of any government control. That means these currencies cannot be manipulated by central banks like our own Federal Reserve, or other central banks around the world.
In many ways they’re the modern equivalents of gold and silver, which were pure forms of money before governments and bankers got around to manipulating them for their own benefit.
So in a sense today’s cryptocurrencies are probably the last “pure” currencies on earth. But their potential impact goes beyond even that…
In the past, all transactions took place with an intermediary — like a bank — overseeing the process. The bank would verify the transaction, adding a certain level of trust.
But cryptocurrencies are completely revolutionizing the old system — cutting out the middleman entirely.
Instead, digital transactions are made peer to peer, without the middleman. And the new system is regulated by “blockchain” — a decentralized database that records each transaction.
Blockchain is essentially the trusted backbone of all cryptocurrency transactions. Within the blockchain, transaction records and payment details are spread across a massive public database open to all bitcoin “miners” in the network.
These “miners” are people with super-powerful computers — each competing to confirm and authenticate each transaction in the network.
They’re not doing this for free, mind you. If a miner’s computer program validates the transaction first, he or she is rewarded in Bitcoin.
At that point, the verified transactions are added to the blockchain database. So the next round of money transfers can be authenticated by miners — and so on.
That immediately makes the process transparent and verifiable. In addition, miners’ computer programs confirm transactions and reset every 10 minutes. And each 10-minute group is called a “block.”
Each proceeding block is also verified by the mining software and then linked to the last block — creating a chain.
There’s no centralized location for transactions to occur. Ultimately, this decentralized system — with so much …read more
Source:: Daily Reckoning feed
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