Tesla car in space.
The images speak for themselves.
As everyone seems to have gone “crypto-bonkers” these days, I decided to look deeper into how to create a cryptocurrency and look at if it is possible to create a currency within 24 hours.
The subject has been hot with the techy and first-mover crowd for a number of years. As we all know it’s now gone mainstream with even your granny checking her Etherium values.
A quick google on “how many cryptocurrencies are there”, reveals some intereesting facts. They seem to be growing over time.
This is an interesting question because there seems to be a debate going that Bitcoin is not really a cryptocurrency, but a digital asset.
I am going to define it as:
Also a specific unit of a digital, persistent entity which comes under the control and ownership of one person or legal group, where ownership is transferable.
There will be exceptions to this rule of course.
This is my own definition without spending hours on what others are defining it as, another rabbit hole we could go down. It would be interesting and warm, which is why the rabbit hole is attractive. But does not serve our purpose of focusing on the build and not on philosophical discussions which last long into the night and require many trips to the all-night garage for Chocolate Hobnobs.
I want to focus on being able to answer two questions.
1. How do you build a cryptocurrency?
2. How do you increase the value of a cryptocurrency?
How to build a cryptocurrency
I am starting from virtually zero knowledge, I know certain terms like “blockchain” and “mining” are keywords so lets do a deep dive on the subject.
I am going to deal with the technical issues around creating a cryptocurrency, rather than a wider discussion around what is and what it isn’t. This should help focus on the end goal of creating one, as I think we know enough to move forward.
Discovered there are two options to go with.
1. Create a completely new currency
2. Create a fork from a current currency
Creating a brand new cryptocurrency means having full control over the currency but it seems like the level of expertise you need to implement is very high if you are not a technically savvy individual.
I think most will want to create their own currency, it sounds a lot more fun and a step closer to creating your own nation-state and becoming King.
Creating a fork of a current digital currency.
Questions to consider whilst building a cryptocurrency
How to create a Bitcoin fork
Called “forkcoins”, or “Initial Fork Offerings”, creating forks in cryptocurrency is a popular endeavor and quite a lot of information to do this is available on the web. There is a service which will set it up for you at the cost of 0.01 Bitcoin. You still need to be aware of how the Bitcoin Core software works, as there are some important issues you need to be aware of when running a fork or creating an altcoin and you should carefully read the faq.
There are quite a few resources and guides to creating a Bitcoin fork. Most cryptocurrencies seem to be based on clones of Bitcoin and more importantly most of failed.
Creating your own cryptocurrency
Read the original white paper from the creator of Bitcoin, Satoshi Nakamoto
This gives an insight into the intention and vision of the original crypto
Most cryptocurrencies are based on the same open source code of Bitcoin Litecoin, available to anyone on Github
The act of setting up the code can be done in a day and that the setting up of the system is relatively easy or hard depending on your coding skill level.
And it’s even easier if you want to create a fork in a current crypto with the easy to use apps which are popping up.
What is hard is creating a community of people who back the currency and are willing to host the blockchain.
The biggest part of getting a crypto to truly work is people and how they perceive the currency. This is very interesting as it adds an element of social engineering or even marketing to the build.
Technical types who are comfortable with code, may not be as comfortable persuading people to use their currency and help with building its perceived value. Obviously, this is where the smooth-talking salesman can make a quick, unethical buck and use their persuasion skills to pump up the price of a new crypto, dump their coins and then abandon the project.
Trust and reputation seem to be a big part of building a successful cryptocurrency and whilst we have lots of social tools to enable people to be reached, there is the fact of a distracted crowd and an oversupply of digital currencies which pretty much all do the same thing.
There is a healthy dose of scepticism around cryptocurrencies and the people who push them. Why would anyone invest in a crypto which does the same as the others and has no community.
It seems that a lot of the new currencies are stealth launched, in that they already have a healthy community to support the currency.
It looks like Steemit, has a great idea, allowing users to publish content and be rewarded by the community based on the value of the content. Here is my Steemit blog, it’s still early days with the system, but it is supporting a viable currency whilst others choke and die. Although a crypto that is older than two years is considered ancient.
It may be that those with a unique and exciting idea in which to underpin a cryptocurrency with will be more likely to thrive and survive than those who simply push out a technically fine currency, but with no community support.
A good example of creating a digital asset which creates a community is the Crypto Kitties, of course, it’s ridiculous. But ridiculous gets talked about and people love the ridiculous, remember the durability of a currency has to have people behind it.
6. Ethereum Classic
11. Bitcoin Cash
19. Bitcoin Gold
The common denominator of these popular currencies is sustainability. They work and don’t break. This is the foundation we should aim for when creating our own, new cryptocurrency.
Cryptocurrency markets and exchanges
How to create a decentralised application
A key thing about a cryptocurrency is that it is decentralised. Meaning the ledger of who owns what is not stored in one place but is shared in many places. This is what gives a crypto security and independence from a central authority.Most of the time when you create an app it is centralised, but what if you could create apps that are not.
It means that the perception of the currency is based on its rules, the codification of which is share with many participants. The enablers of this are called miners.
In a sense it is crowd sourcing the perceived value of something.
Creating a decentralised application seems to be the way to go in creating a crytptocurrency. Here’s an interesting video on the theory and practical application of creating a decentralised app.
If you have a few years of coding and web dev experience, it seems with a little time and effort you could create your own currency. However, building that currency into something of value takes vision, leadership and community skills.
It is very tempting for anyone in the tech world to try this stuff out and many have. I am quite intrigued by how the whole digital, valuation system works and will be exploring more in depth and will be creating my own asset. Not a digital currency as such, but something similar. Something a bit different
Not understanding the fundamentals and over complicating the process
You don’t need a third, the above is enough. Now I have saved you time, go make some money.
But let’s look at this in more detail.
A specific mistake may be that a beginner looks at all the content that is being produced, notes that certain types of content are more common and think that is the type of content to create.
The flipside of that mistake is when a content type is perceived to be ineffective because it is so common. The listicle is a prime example.
Not creating content that works, because the creator has a personal prejudice against that type of content. An example is our friend, “the listicle”. If you work in creating content with a view to drive traffic, you will learn to loath the listicle. But the hard truth is
NO ONE CARES WHAT YOU THINK
It may be that in your experience you think this type of content is not effective, but that is a different process than thinking, “urgh, I hate listicles, they’re grody to the max.”
The best content creator, in my experience is the one who likes getting under the skin of others, the one who likes to get a rise out of people, the one who needs a reaction to validate their existence. Good content creators are troubled people.
Having a tool means you don’t have to work as hard, it has the promise of saving you time. This is why the idea of the “tool” is very attractive. A blog post that details a list of tools will always work as a type pf content, the more comprehensive the list the better, even if most of the list is not read.
This is because each tool highlighted, each description is a little promise that it will save you time and any content that saves you time gets shared, bookmarked and linked to, more than one that doesn’t.
Which is probably why we see so much content detailing the many tools available to us, such as 12 Free SEO Tools. A blog post I did recently and which drove a nice bit of traffic to this blog.
But you don’t need any tools to do good SEO.
You don’t need tools to create great content.
Yes of course a tool is useful as a mechanical aid to perform a specific task, but excitement over tools is similar to when the DIY nut goes to the store and ends up spending hours going through the specs of the drills, when all she needed was a hole.
It’s really about what happens in the brain of the reader at the time they consume the content
We are wired to compare things, to sort things. The SEO mindset puts this on hyperdrive and so when asked to create content will head to the tools. Therefore if you want to attract the SEO to your blog, create plenty of listicles.
The most simple tool and probably the most effective when it comes to creating content is pen and paper.
But that just sounds boring, doesn’t it?
I often come to a point where I have used up all the obvious ideas for content to create.
The solution to the creative process is the one that works for you. It’s about trying a few out before you find one that fits. This is such a common problem with writers and creative artists that there are many ideas out there about how to get to the point there you have a pile of workable ideas.
My personal solution to this problem is this
Whatever works is what works. If the ideas are not flowing, pick a solution you have never used before and see how it works. With a mind to developing your own personal box of solutions.
There are are many mistakes that will be made when a beginner, and don’t let them slow you down when it comes to creating content. Mistakes are there as aids to learning, if no mistakes are being made you are probably not trying hard enough.
At least as a beginner you wont have a huge amount of people watching what you do and picking it apart.
People share content, love content, devour content because of the emotional reaction they get from it. It’s why polished, visually correct fails all the time. The key to content that works is when it crawls right down inside the brain and awakens something primeval.
I’m going to be writing more on this subject and how to use empathic focus when creating content for marketing.
Install the smartphone, picture filter app, try them all out and see what happens.
I took a picture of a sunrise in Cornwall and put it through my filter software to see what came out and the results are interesting.