If you asked the average person on the street about cryptocurrency, they’d probably assume you were talking about Bitcoin. But cryptocurrency is much broader than that. Bitcoin, for example, isn’t the only kind of cryptocurrency. There are dozens of kinds. And they’re worth millions.
In September 2017, the cryptocurrency market soared to a high of $20 billion. At the time, it was the largest in history, and it began a 1,000 percent upward trajectory in the following 24 hours. Since then, the market has fallen dramatically, and it’s now trading at around $120 billion. But how big of a deal is crypto anyway? And more importantly, is it right for you?
In recent years, cryptocurrencies have become a huge topic of interest. But what exactly is it? What should you know about it? What kind of technology is used to create a cryptocurrency, and how does it work? Let’s explore the basics of cryptocurrencies to help you better understand what it’s all about and how it might affect you personally.
Simply put, a cryptocurrency is a digital or virtual form of currency, like the dollar or yen, that is generated electronically. It is created by using cryptography, which is a language technology that uses strings of characters to create a code that is only readable by the person who created it.
The cryptocurrency market has blown up over the last few years, making millionaires out of cryptocurrency enthusiasts who jumped in at the right time. The digital currency market is the largest of its kind and shows no signs of slowing down. But how exactly is cryptocurrency different from regular currency?
Crypto, short for cryptography, is kind of like math but with more zeroes. It’s used for securing data, like passwords, so no one else can read it. Crypto is also how Bitcoin, the best-known type of cryptocurrency, works. It’s used to pay for goods and services while avoiding the need for banks, credit cards, and other financial institutions. It’s popular because crypto is more resistant to hacking than other types of money.
Cryptocurrency is all the rage right now, but most people are only scratching the surface when it comes to understanding it. A new wave of investors is letting Bitcoin and other cryptocurrencies take centre stage. Still, crypto isn’t just a way for these people to stash away their cash: it’s transforming how banks operate; how businesses process payments; how we communicate with each other; and even how we fund our education.
Many people see it as a way to invest their spare change, while others see it as a way to build wealth. There are many cryptocurrencies in the market today-Bitcoin, Litecoin, Dogecoin, Ripple, Ethereum, Zcash, etc.-but they all share one essential attribute: they are digital money built using blockchain technology.
Many services are now accepting cryptocurrencies as valid payments. You can buy cars, houses, and even stocks using crypto now. People can also try their luck with Dogecoin or Ripple by playing at casinos that run on such currency. These casinos can be found listed at bitcoinpokie and similar portals. Beyond that, crypto is in itself being traded as a commodity in many markets around the world.
It’s common for people to invest in these currencies but know very little about the technology behind it. In 2009, Satoshi Nakamoto, a man or group of men, released the first version of Bitcoin, a peer-to-peer electronic currency system that does not require a central bank. Bitcoin’s purpose is to allow people to exchange value quickly, securely, and anywhere in the world without intermediate parties.
Cryptocurrencies have been around since 2008, but they’ve grown in popularity and accessibility over the past four years. Most cryptocurrencies are a peer-to-peer payment network that uses cryptography to secure transactions and provide authenticity. Computers all around the world are connected through this network. Bitcoin (as well as other currencies like Ethereum) uses a decentralized network, so there are no competing organizations or central servers, and it cannot be shut down or controlled by any government.