What Is Digital Money And Will It Replace Paper Money?

The best known digital currency is Bitcoin. Bitcoin was the first and started a revolution in the way money works so you had better get used to the fact that digital money and crypto coins are with us and here to stay.

Starting in January 2009 the Bitcoin was at first given away for free then gradually, over time, it has increased in value to a heady high of $7,570 in November 2017.

If this isn't proof enough that alternative currencies work, then this article is probably not for you... otherwise, read on.

From this early success a whole industry has grown up around digital money and cryptocurrencies. The market place has grown to such an extent that Bitcoin and Crypto Currency Consultants abound. Some are able to give very solid advice to the newcomer while others are merely riding the wave.

So where do you start if you want to actively start participating in the cryptocurrency market? Going straight into the market place is one option but having an understanding of 'the blockchain' and a team of experts to help you is a better choice.

Understanding 'The Blockchain'

The blockchain, briefly, is the technology or software that verifies all online transactions. All transactions are anonymous because all transactions are indentified by a special address that is attached to your crypto coin wallet.

The technology is not owned by any controlling authority, rather it is shared by the community of alternatiive coin users.

There are different types of blockchain, Bitcoin is public and permissionless while banks and other institutions have private and permission based blockchains. It's beyond the scope to go into all the ins and outs of blockchain technology here, but Bitcoin, as an open source protocol has been adapted and improved by subsequent 'altcoins' to spawn more variations.

The DasCoin Blockchain for example, employs a decentralized exchange that trades, settles and clears over the Blockchain independently.

Will Altcoins Replace Paper Money?

Since Bitcoin launched, other currencies like Etherum (ETH), Litecoin (LTC) and Ripple (XRP) have made an impact on the market while many others have tried and failed.

A combined basket of successful crypto currencies rose in value 1,466% last year alone - imagine that! There is nowhere that the average person can make such high returns on their investments.

As more and more people are attracted by the gains in value they also realise the benefits of fast, anonymous and safe online transactions without the need for centralized control.

However, investing in cryptocurrencies is not all plain sailing. Just like buying stocks and shares, there are always winners and losers. Bitcoin has certainly paved the way and continues to lead in terms of popularity and market capitalisation.

Other altcoins offer different and more advanced features. Dash for example, offers more anonimity while Litecoin offers faster transaction rates and Dascoin offers a hybrid of decentralized cryptocurrencies and centralized currencies.

Over the years since Bitcoin was born, there have been many financial experts declaring the death and demise of the 'Bitcoin Bubble' and each time the value has continued to grow.

From all the evidence, cryptocurrencies are the future of money and here to stay. Amongst all the altcoin competion that seems to grow daily, it is advisable to have a knowledgeable team that can help and guide you through your first venture into altcoins.

We at Team Phoenix offer you that opportunity and invite you to join us. You will learn more about us here.