What is a Cryptocurrency?
Cryptocurrency is making the headline on news outlets all around the internet, but what is it? A cryptocurrency is simply a digital currency that is independent of centralized systems, namely banks. The very first cryptocurrency, the Bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. We still don’t know who created it, but his/ her/ their creation has amassed a huge adoption by many around the world. Having been introduced in 2009, it’s price was nearly nothing, fractions of a penny; then it jumped up to nearly $20k. Today, a single Bitcoin costs around $13k and is one of over 1,000 other cryptocurrency, also called alt coins. The mainstream media for the years since Bitcoin’s inception have portrayed it in a negative light; though it has its share of objections, many are starting to invest in it.
The top three Cryptocurrency in the world:
Uniqueness of Cryptocurrency
Cryptocurrency is decentralized, meaning that it is not controlled by conglomerates such as banks and government. In addition, it incorporates blockchain technology, which is an incorruptible digital ledger that keeps track of everything that has happened in the past and will happen with the coin in the future. The amount and the fashion in which the coins are distributed vary.
There are 7,200 Bitcoins produced per day, but there will be less and less as time goes by and will eventually halt in production at 21 million Bitcoins, in year 2140.
More Resources on Cryptocurrency
- Blogger Tim Kim: http://tubofcash.com/bitcoin-frequently-asked-questions/
- A list of Cryptocurrency being traded: https://coinmarketcap.com/
- Documentary on Netflix: Banking on Bitcoin
Coinbase is the most commonly used and user friendly platform for people to purchase Bitcoin, Bitcoin Cash, Ethereum, and Litecoin (ranked in the top 6 cryptocurrency).
Word of Caution
Although Cryptocurrency may be popular and have extensive reach around the world, it is very volatile. It has also been used wrongly for criminal purposes. If you are considering purchasing coins, you are doing so at your own risk.