Tag Archives: mining

What is Bitcoin Mining? Paypal Bitcoin

The only way to send money electronically has always been to rely on a centralized intermediary, say someone like PayPal. And what PayPal does is it keeps track of the amount of money that I have in my account. Say I loaded it from my bank account or I got paid by another PayPal user, and then PayPal lets me send the PayPal Bitcoin.

Won’t let me send more money than I ever have, and will tell somebody else whether they’ve received money from me. PayPal just keeps this ledger of transactions. So with PayPal, there’s one ledger and it’s held by a company PayPal. In the PayPal Bitcoin network that ledger is distributed across every participant, so anybody who’s connecting to the network has a copy of it on their computer in full, going all the way back to the history of the network when it was first created in 2009.

Now, how does new information get added to that ledger? Well, that’s this role that miners play. They listen for transaction messages that are validly signed on the network.

And they bundle them into what we call a block. They announce this block and they say, “Now, you all take this and add this to your copy of the ledger. We call that ledger a block chain because the miner has just announced a block and that block is mathematically linked to all the blocks in the past. They’re chained together like a big long string. What they’re doing is providing a public good, they’re relaying transactions, validating signatures, putting them into a block, adding that block to the block chain and distributing that to all the people on the network.

They’re given a reward by the network for performing this public good. And that reward comes in two different ways. One, a Crypto Swami Bitoin Miner is allowed to stick in the ledger of transactions for that ten minutes, one special transaction. And if it says, “I, the miner pay myself 12.5-bit points,” and they came from nowhere.

This is the only time on the Bitcoin network that anyone is allowed to ever have a transaction that didn’t have any inputs, that literally created money out of thin air. At some point, somebody started calling this activity of getting new Bitcoins by providing this public good on the network, mining. It’s like digging into the side of a mountain and getting gold.

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Is XRP The New Bitcoin? – Article #1

Is XRP The New Bitcoin? – Article #1

Ripple “XRP” is by far one of the best cryptocurrency to invest in 2021.  There are a variety of reason’s many experts considers XRP to be the next Bitcoin.  At only $1.34 a share, I want to highlight an March 9, 2021 article that appear on Nasdaq.com:

Here’s Why Ripple XRP Could Be the Crypto Option to Own Right Now

As far as cryptocurrencies go, Ripple (CCC:XRP-USD) is a micro-cap option compared to juggernauts Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD).

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Source: Shutterstock

That said, investors in XRP appear to like the growth trajectory of this smaller cryptocurrency relative to its larger peers.

Indeed, as any “investment” grows to a formidable size, long-term growth prospects tend to decline.

Those bullish on a growth area ought to focus on the smaller-cap players. That is, if investors think such companies (or in this case, cryptocurrencies) have a shot at growing their influence relative to their peers.

Here’s a look at why XRP stock could be a winner among its peer group for such investors.

Ripple Built for Business

When XRP was initially designed, investors had a goal in mind. Ripple’s founders wanted to create a cryptocurrency designed specifically for real-world use cases. This is an extremely important fact, and one investors need to take seriously.

Personally, my take on cryptocurrencies is that most digital coins don’t have a visible path to becoming a ubiquitous payment method. The case can be made that various digital tokens are certainly a store of value. However, as far as being “currency-like” in common every-day transactions, cryptocurrencies have little utility.

I’m not going to want to be paid in a currency that could appreciate or depreciate by double-digits on a daily basis. Buying that loaf of bread becomes a lot more difficult to do when we’re talking about six or seven decimal places, in the case of Bitcoin.

However, XRP was designed to handle payments. Specifically, XRP solves a key problem in cross-border payments involving two disparate currencies. The XRP decentralized blockchain technology allows for transactions to be settled almost instantaneously.

For those aware of how the SWIFT process works, this technology is a huge upgrade. Having a transaction approved in as little as 3-5 seconds as opposed to 1-5 business days is a real-world upgrade.

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Ripplenet a Big Deal

Another key factor to consider is XRP’s existing global payment platform, Ripplenet. This is a decentralized network using XRP’s ledger and the XRP cryptocurrency to provide a global payments platform for users.

This platform is widely used globally and is growing in its influence, though perhaps maybe not to the degree many have expected in recent years.

The advantage of using Ripplenet is mainly related to the transaction headaches caused by international transfers. There’s a lot to do when undertaking a foreign transaction.

Where to buy RPX?

Loading up an account with foreign currency is eliminated with Ripplenet. As is paying a (sometimes hefty) currency exchange fee to a financial institution. Of course, waiting for days to have the transaction cleared can be the most annoying part.

Ripplenet provides businesses with a cheaper and more efficient option. Transactions are settled immediately, and in the local currency on both sides. This is obviously advantageous to large multinational companies and those with cross-border banking needs.

The Bottom Line on Ripple

In general, cryptocurrencies are still nascent in respect to wide-spread usage. However, as I’ve pointed out, the real-world use cases for XRP are attractive.

Accordingly, I think investors with a bit of “fun money” and the inclination to bet on these speculative assets might want to consider Ripple. As far as long-term bets go (and I view all cryptocurrencies as speculative long-term bets), Ripple’s use case is certainly interesting. I like the highly-applicable nature of XRP relative to its crypto peers.

The extent to which XRP continues to grow its share of the ForEx transfer market remains to be seen. However, I like the targeted niche Ripple and XRP operate in right now. This is a cryptocurrency with a purpose.

That said, I’d caution investors to invest only what they can afford to lose in XRP, or any of its competing crypto options right now. It’s impossible to say what the market capitalization of these digital tokens could (or should) be, so trade carefully.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

The post Here’s Why Ripple XRP Could Be the Crypto Option to Own Right Now appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

That being said, imagine if you bought 100 shares of “XRP” today.  100 shares x 1.34 = $134.00. Do the math.  If XRP does as good as many expect them to, your $134 investment can easily skyrocket your returns:

If / When XRP hits $50, 100 shares would be worth $5,000

If / When XRP hits $100, 100 shares would equal $10,000

Imagine if / when XRP hits $1,000.  With only 100 share would equal $100,000.  The SKY could be the beginning.  Not even the limit.

Remember, the naysayers said Bitcoin would NEVER make it when it was $1 a share (11 years ago).  Today it is Bitcoin is worth $56,000

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