Features

Crypto Terms You Should Know...

Physical coins

Bitcoin and all the other altcoins are digital currencies so there are no physical coins or banknotes. This is only 99.9999% true, you will see on many websites, and even our own, pictures of what appear to be physical Bitcoin coins, bearing the Bitcoin “B” logo. These are of course just made up novelties, they are NOT Bitcoins and they have absolutely no value whatsoever.

There are of course a slight exception to this rule in the case of the Casascius coins (of which thousands were sold), these are far better quality coins that were made as part of a project. However the quality and the manufacturing are not what gives them their value, what gives them their value is inside each coin there is a Bitcoin private key to a wallet which holds one Bitcoin.

They have a security seal on them so once the security seal is broken, someone will have been able to move that Bitcoin and the metal coin that you have in your hand will be absolutely worthless. But with the security seal intact they are of course worth a whole Bitcoin plus a bit extra for the novelty value. I would urge everyone to stay far away from these things just in case. Unless you can actually see the thing in your hand to make sure the security seal has not been tampered with, they should be avoided.

Mooning

This is a term that comes up a lot in discussions about cryptocurrencies. It comes from the phrase “To the Moon” meaning the value of a coin is skyrocketing upwards and will therefore reach the moon. Basically the price is going up.

Dooming

Basically the opposite of “Mooning”, the value of the coin is dropping, or is doomed.

Market capitalisation (or Market cap)

What all the Bitcoin (or any other cryptocurrency) in world would be worth if you converted it to Fiat currency right now. E.g. if there are 1,000,000 coins which are worth $10 each, then the Market Cap isĀ  $10million.

The Flippening

This is an interesting idea. The “Flippening” is point at which the market cap of Ethereum overtakes that of Bitcoin. Several commentators have various ideas about what exactly that will mean for cryptocurrencies in general and specifically for Bitcoin, ranging from a) it doesn’t matter as they are different things with different functions to z) it will be the death of Bitcoin as everyone moves to Ethereum. I’m definitely in camp A. There is no maximum limit on the number of Ether (a so called hard cap), so it’s being constanting mined, so of course it will eventually cause the Flippening and absolutely nothing will happen folks.

Hodling

This term comes from a typo on a forum post. The poster meant to say “holding” as in “I am buying Bitcoin and holding it until it’s worth $100,000”, but he mistyped it as he was drunk. The term has sadly stuck and is now used by everyone when talking about holding cryptocurrencies for the long term.

SegWit2X

It stands for Segregated Witness 2X. It’s a software feature to allow the capacity of the Bitcoin blockchain to be increased (think faster transactions and less fees). Not something regular users need to worry about. The only fun fact you may be interested in is that it’s what caused a major disagreement amongst the developers of the blockchain software which then caused a split among them that led to the creation of Bitcoin Cash, a completely separate altcoin despite the name.

Airdrop

Free coins or tokens that are given away during a coin launch or ICO to create some publicity.

Faucet

The is a website that gives away free cryptocurrency. Before you get too excited, it’s not very much cryptocurrency. You’ll need to visit the website, every 15mins/hour/day to collect your free crypto, you’ll need to fill out captchas, they’ll show you a million adverts, maybe use your computer to mine for them and then they’ll give you a few cents worth of crypto.

 

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