Cryptocurrency has different seasons of Spring, Autumn, and Summer. Bitcoin season and Altcoin season change with the demand and supply. Smart contracts are not agreements written on paper but a technology that was introduced by Etherium into the world of Cryptocurrency. The market cap is basically the value of your business on a particular date on that very particular date. Bitcoin is the most valuable Cryptocurrencies because it gives others a platform to build their own businesses. For instance, Shiba Inu was built on Etherium, which makes Etherium the second most valuable Crypto.
Vaibhav Bhargava
A meditator & a nature lover. I am a morning person who is dedicated to achieving the goal set but also enjoying life
After reading the first article, you may have gained a little knowledge about what Cryptocurrency is and what its basic terminologies are. The terminologies we talked about were Altcoin, Blockchain, Private key, Public key, Gas, Bull market, Bear market, and Volatility.
The understanding about these terms might not have made you the subject expert yet, but in this article, we will be discussing a few more terminologies that can help you out. We know how Crypto-curious you’ve been after the previous article. 😉 So, here we will be discussing more such terminologies that will help you in taking a step towards being the subject expert. Ready? Let’s go!
Mining – Did you think of mining as a process of extracting some valuable minerals from the Earth? Well, the mining that we will be talking about is way different. It is a methodology of protecting the network. It is with the process of mining the Bitcoins are put into circulation. There are innumerable miners that are making use of the mining rights to get through the computational puzzles. Once the puzzle is solved, the last block is mined and as a result of it, more Bitcoin is put into circulation. What makes mining important is the security. Now you may wonder, why do we need to be secure if we don’t share our private key with someone? This is because Bitcoins can be hacked with an equivalent amount of hash power against the present hash power. Because of the Bitcoin mining network being very extensive, it makes it next to impossible to hack Bitcoin. Other than keeping the network secure, mining is also said to be a proof of work as the Cryptocurrencies are generated through the proof of working. This may be a lot to process at once, but mining is a very important term to understand.
Bitcoin Season and Altcoin Season – Like we have different seasons of Spring, Autumn, and Summer, Cryptocurrency also has Bitcoin season and Altcoin season that change with the demand and supply. Now investing money is not only a tough decision, but it also requires ample research to know where the money flow is going. Because Bitcoin is the first and most famous Cryptocurrency, the money flow starts from there and then filters down to other Cryptocurrencies. Now how do you know which season it is? There is a chart called Altcoin Season Index that helps you to understand whether it is Bitcoin season or Altcoin season. It must have become apparent that in the Bitcoin season, Bitcoin exceeds the rest of the market. And when it’s the Altcoin season, the Altcoins excel the remaining market.
Etherium – We have mostly heard …….
Source: https://hackernoon.com/understanding-cryptocurrency-part-ii-basic-terminology