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The world of cryptocurrency, blockchains, and Bitcoin can seem intimidating at first. We sat down with Swami Crypto of ARCrypto to learn the basics. ARCrypto is a fundamental cryptocurrency learning academy that can teach you everything you need to know about coins, digital wallets, investing in digital currencies, blockchain technology, and so much more. They use both group and one-on-one individual approaches to ensure their students get the most out of the information, so they can apply it to their financial habits.
So, What is an Altcoin Anyway?
You’ve heard about Bitcoin, and you likely know that it was the first digital currency. The value of one Bitcoin is currently $43,000, but that number changes daily.
Just like it sounds, altcoins (short for alternative coins) are any cryptocurrency that is not Bitcoin. Each coin, including Bitcoin, has its own blockchain. A blockchain is a string of uneditable transactions that log the buying and selling of a coin.
Some of the big blockchains are Bitcoin, Etherium, and Binance. Binance, however, is not available in the United States.
You can think of cryptocurrencies just like the stock market, but they have the added benefit of being backed by their blockchain, which prevents inflation due to their market cap. Because the blockchain cannot be changed or edited, once all available coins have been purchased, no more can be made.
In contrast, the Federal Reserve keeps printing money as they see fit, putting the banks and government into irreparable debt. Additionally, banks can lend money they do not actually have, a concept known as ‘Fractional Reserve Banking.’ This poses problems when too many people want their money – think of the movie It’s a Wonderful Life or the 2008 stock crash.
You’ve probably heard about the physical gold bricks that used to represent the American dollar. You also probably know that the amount of bills in circulation nowhere near matches that amount of gold today. Bitcoin is striving to be the new gold standard. Currently, it influences the price of all altcoins. When the price of a Bitcoin increases, so do all the others. All coins rise and fall at their own paces as well, based on how much money is invested by the public.
Blockchains are the solution of checks and balances that society has needed for decades. No one can modify or add to it. Transactions are traceable forever, versus cash that can change hands in the blink of an eye with no evidence. How much was traded, and the IP address from which it was, are forever imprinted.
“If I hand you five hundred dollars in cash right now, nobody would know besides you and me,” said Swami. “The blockchain leaves no room for sneaky transactions like this. The system is pure and safe, it is absolute. And that is the benefit.”
This form of currency keeping and trading is safer, more lucrative, and more accessible.
Stablecoins vs. Altcoins
Stablecoins are backed by fiat currencies. In the United States, stablecoins mirror the price of the American dollar. Tether is a great example. When you put ten dollars into a stablecoin, you always have ten dollars. There is little to no risk of loss; it only marginally fluctuates based on the value of an actual dollar.
Stop Being Controlled by Your Bank
“Until recently, banks were the safest option to store our funds,” said Swami. “But with blockchain technology, we have the choice to be our own banks. We can be more in control of our finances than ever before. I am my own bank. I literally have custody of my own money. I do what I want to do with it.”
With peer-to-peer trading, we can earn passive income and interest. Decentralized finance allows the public to lend and borrow money the way banks do, but it is all backed up by real transactions that are worth something.
Join the Fight Against Inflation: Your First Step
“One of the biggest barriers to entry when it comes to cryptocurrency is fear and lack of knowledge, but crypto is for everyone,” said Swami. “That is the beauty of it. It is so accessible. I think anyone who wants to get started needs to start by learning. Absorb as much information as you can. It is a new concept, but eventually, it will be the norm. Right now, everyone is worried about how it all works. But we don’t think much about how banks work anymore do we? We just give them our money blindly.
“Learn about this new way of financial freedom so that future generations can trust this unbreakable system. Eventually, we can freely give our funds to these currencies without feeling blind. We can simply trust – within reason of course.”
Knowledge is power. By learning about this secure way of financing, the world can take steps to reduce debt, increasing convenience and wealth in the process.
About Swami Crypto
Swami Crypto is passionate about bringing crypto to the masses during this greatest wealth transfer of all time. He is making crypto accessible to everyone and is truly building a community. He has spoken on stages across the US. Click here to learn more about his private crypto training program: https://www.arcrypto.io/
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