What is Cryptocurrency
Common questions (and a few misconceptions)
Crypto is version 2 of paper money
Simply put it’s a digital-form of cash. Regular cash when seen on your bank statement or atm display is also ‘digital’. Like the internet did to textbooks, cryptocurrency offers us a choice besides the traditional paper money.
The nearest bank is now your phone, therefore only closes if you have 0% battery and no alternate means to access the web.
What are the advantages over traditional cash?
Crypto offers near instant transactions to anywhere in the world 24/7/365. It’s typically far cheaper than sending a bank wire Others offer greater security, near zero fees, or a degree of privacy. Some coins or tokens are creating brand new applications of which blockchain is an example.
Now you have exciting new alternatives to traditional cash. Some cryptocurrencies help buy and sell things, send and receive currency to practically anyone they wish instantly and inexpensively.
Why is Cryptocurrency volatile?
Bitcoin, the oldest cryptocurrency just turned 10 years old on Jan 3 2019. Most are much younger. So it’s new technology in an early stage of adoption. Not unlike the internet in the late 1990’s. Methods to safely store crypto, faster and more secure protocols to verify transactions, and new use cases for coins and tokens are evolving daily.
Is crypto really the greatest innovation since the internet?
Crypto is digital currency built on top of the internet. One difference to traditional currencies like the Euro or US Dollar – crypto is not run by a Central Bank or Federal Reserve, rather the people (users) on the network. Bitcoin for instance has a global computing network behind it with more computing power than the top 9000 super-computers combined. Yet all that computational power is spread across millions of individual machines (called ASIC’s).
How are cryptocurrency prices determined?
The price of a coin or token on a given day may, depending on the beholder, appear inexpensive or overpriced. ‘Value’ is a really just the opinion in financial markets. When buyers and sellers meet on an exchange where crypto is traded the collective opinions of both buyers and sellers determine the price. Basically, its supply and demand.
How many coins are there?
There are more than 2,000 individual cryptocurrencies available. New coins and tokens are being created almost every day.
What is an ICO?
ICO’s (initial coin offering) share at least one commonality with IPO’s you may have heard mentioned in the stock market equivalent (initial public offering) early stage investor funding.
Could cryptocurrency could be illegal or worthless tomorrow?
The internet is the backbone of cryptocurrency. To make crypto illegal first requires a global treaty between major governments around the world to agree to shut down the web. Crypto is no more likely to disappear than email is likely to be replaced by regular mail.
Highly improbable… but no one can rule it out.
Why Red Fog?
Our mission: To offer you the chance to experience cryptocurrency, competing within a global friendly community. If you’re new to crypto and perhaps not proficient trading in financial markets – remember learning from your mistakes can be expensive. There’s no actual crypto buying and selling on Red Fog, but you’ll get to experience what all the talk is about….