Understand the Backend of Cryptocurrency to Recognize its Value
By Kwaku Abedi on The Capital
Anytime the conversation on cryptocurrency pops up and how its changing people’s view on money business, some “Naysayers” go on full investigative mode trying to question the “mechanics” of cryptocurrency and how it works from the “backend”. Usually, there is some level of cynicism that accompanies their desire to know.
This cynicism can be blamed on stunts and fraudulent events that have happened in the Crypto community, most recently by the so-called “Crypto Queen” Dr. Ruja Ignatova and the many others that have bolted with people’s hard-earned money in the name of shiny new coins and bogus ICO’s.
Cynicism aside, cryptocurrency presents an important use case that aims to democratize money and bring people who have been economically marginalized into global trade. Therefore the continued slant on cryptocurrency has the potential to hurt its development and maintain the status quo in a world where more than a billion people live in poverty.
It’s worthy of note that people who’re the huge critics of crypto on any given day won’t question the backend of fiat currency at all.
To move the conversation forward, it’s important to understand that Money is what we all agree is an item that has value and the definition cryptocurrency embodies the definition of money and even better.
Just like several forms of fiat currencies have come and gone, several cryptocurrencies will come and go, what’s important is being diligent and not automatically ruling out cryptocurrency claiming it is not “real money”.
To Understand the backend of the large varieties of cryptocurrency on the market.
Read the whitepapers
Every crypto that is released unto the market or goes through an ICO comes with a whitepaper. It is important to spend some time reading the whitepaper, learning about the team that is leading the charge for this new cryptocurrency and their pedigree.
Whitepapers usually provide you with all the necessary information you need to understand the exact challenge this crypto aims at solving
Visit the websites of New Cryptos and understand the challenge they seek to solve
Read the news and expert opinions on crypto. Be circumspect of websites that are bogus or seem to pursue an agenda. Carefully select sites to read information about in order to be informed on what’s happening in the industry.
Use Social Forums
Social Forums such as Reddit are a great tool to stay informed and up to date about the industry. The good thing about social forums is the heated debate and opinions that happen on these platforms. They present the opportunity to listen to both sides of an argument on “hot crypto” news items that are running throughout the day.
Talk to Experts and Thought leaders in the industry to further deepen your knowledge
Connect with industry experts and analysts on social media, most of them will be open to engage to you frequently when you ask them a question. Some will also respond to your direct message and will be willing to provide advice.
Cryptocurrency needs a fighting chance before it’s ruled out by cynical people and Naysayers. For anyone questioning the backend of crypto, these pointers are essential in establishing the real benefits of cryptocurrency.
