Statistics show that Baby Boomers are the wealthiest generation in U.S. history. Boomers have collectively earned $3.7 trillion. With all that disposable cash, it would seem that dipping into the edgy financial world of cryptocurrency is a worthy endeavor. Apparently, there are several reasons Boomers are hesitant, least of which is the steep learning curve. So with that in mind, I have decided to delve into this new-age money world, aka tokenomics, and disarm it for you in the best Boomer layman’s terms I can.
Cryptocurrency starts at the blockchain. The blockchain is a system of online accounting developed by a person or group of people known by the pseudonym, Satoshi Nakamoto. It is an incorruptible (doesn’t that sound promising) digital ledger of transactions.
To make it simple, imagine the blockchain as a spreadsheet that tracks all the transactions ever made. It is duplicated thousands of times across a decentralized network of computers and accessible to anyone on the internet who wants to jump in (could be me..or you). The information held on the spreadsheet aka blockchain or ledger is shared and continually reconciled and readily verifiable by these very same people…aka you or me or hundreds of others. No one governing body is in charge, so no one can alter, fabricate or hack and lots of people are verifying so minimizes the mistakes.
Many people are taking advantage of the blockchain ledgers and becoming miners. The miners – also could be you or me…are generally mathematically inclined. They use software to validate new transactions and record them on the global ledger, i.e. the blockchain. On average, a block is mined every 10 minutes. The miners do this by solving difficult mathematical problems based on a cryptographic hash algorithm. The solution found is called the “proof-of-work.” This proof proves that a miner spent a lot of time and resources to solve the problem. When a block is “solved,” the transactions contained are considered confirmed. Miners earn rewards like cryptocurrency or transaction fees for every proof credited to them. So, if you are a math whiz, this could be a good crypto entry point for you to explore.
But let’s understand what you’re earning first. What is cryptocurrency?
Cryptocurrency is not actually a coin in the traditional sense but rather entries into the blockchain database that no one can change without fulfilling specific conditions, i.e. the miners doing the mathematical problems. It is called a peer to peer transaction, in other words, a community-driven currency. The currency makers, miners, buyers and sellers derive the minute to minute value.
The price of cryptocurrency fluctuates widely as people buy and sell the currency making the crypto market feel risky to Boomers. One minute the milk carton you’re buying is a fraction of what it could cost an hour later. But the blockchain soothsayers advise investing into the crypto while the crypto is weak is a smart investment.
There are an estimated 700 cryptocurrencies, exchangeable value tokens available and 100’s more come onto the market daily. This can also be daunting to a Boomer. So, if you are going to take the leap into the cryptocurrency world, how do you know where to go, and which coin should you invest in? Understanding the communities powering these coins and how they are marketed is key to their success. Finding and following a knowledgeable expert in the space, like Crowdcreate, is elemental. The company has been a pioneer in building communities of investors, influencers and users in the crowdfunding and crypto space since 2014. They are the number one cryptocurrency community management and growth company in the United States and represent a globally exclusive and carefully vetted group of 20+ cryptocurrency and blockchain projects.
Many Boomers admit that while they might be curious about tokenomics, buying the product isn’t easy for them. Knowing which exchange to trust and where to begin typically involves a word-of-mouth recommendation.”There is a lot of noise in the crypto space right now,” says Crowdcreate’s Accounts Director Joshua Suh. “And while you can find new offerings on resources like ICO bench, following a company that is leading campaigns is the best inside tip to help you source the highest quality opportunities.”
Another important factor Boomers need to overcome is having confidence in their choices because there is no safety net in the crypto-game. Once you make a transaction, it cannot be reversed and if you lose your private key, you’ve lost your money for good. You have to really know what you’re buying into. “Do your due diligence before you invest in a project,” cautioned Suh. “Looking at the team behind the coin, read the white papers, and see who’s involved. The biggest indicator of a strong project is the vision and passion behind their communities. Today, all these communities are accessible through public channels like YouTube, Twitter, bitcointalk, Reddit and telegram rooms which are available to almost everyone.”
Currently, there aren’t many places to spend cryptocurrency so you have to be willing to simply want to play in the game. And I am just getting started. Send me tips, ideas, suggestions, thoughts or just follow along as I endeavor to become a crypto Boomer trailblazer.
Powered by WPeMatico