Cryptocurrency’s journey has been a rocky one since the very beginning. From being a joke a couple of years ago to rising in value that amounted to several thousands, Cryptocurrency has been on every modern day investor’s mind. However, a large number of investors have stayed away from it due to its volatility and simply because of lack of knowledge about it. Well, there is volatility and risk involved with every investment, so one has to just brave through the storms and wait for the right time for their investment to bear fruit. As far as knowledge about Cryptocurrency is concerned, this is the perfect guide for those who wish to enter into the world of Cryptocurrency.
A large number of people think of it as a great investment that has the potential to change the future and an equally larger number of people think of it as an online fad that is nothing but a waste of one’s energy and money. So before you come to any conclusion, you need to know the definition of Cryptocurrency and know what it’s all about.
Cryptocurrency: Defined
Whenever you ask someone “what is Cryptocurrency?” the answer that most people will give you is that it’s sort of an online currency that you can’t have physically, ever. What they will add to this answer is that it seems like an online scam. Well, they are absolutely right when they say you can never physically acquire Cryptocurrency. But when they say it’s a scam, they might be exaggerating.
The simple definition of Cryptocurrency is that it’s a digital asset that can be exchanged but it is not a tangible piece of currency that one can hold on to. Cryptocurrency owners do not have to go through bank processes or rely on banks for transactions. The transactions involving Cryptocurrency are processed and completed through a “blockchain” network that is designed to be decentralized. Therefore, every computer that is connected to the network must confirm the said transaction before it is processed. It is a safe way for everyone involved, but the only drawback it has is that it takes a while.
Where did Cryptocurrency originate from?
Well,Cryptocurrency was invented as a side product of another invention by Satoshi Nakamoto, the inventor of Bitcoin who is still unknown. Bitcoin, which is one of the most popular forms of Cryptocurrency till date, was announced in the year 2008 by Satoshi who called it a peer to peer electronic cash system. Satoshi wanted to create a peer to peer network based digital cash system that didn’t have a central entity. This is how Cryptocurrency was born.
Cryptocurrencies: How many are there?
The first ever Cryptocurrency and by far the most popular is Bitcoin. It is the one that was developed by the father of Cryptocurrency, Satoshi Nakamoto. Bitcoin is the gold standard in the whole Cryptocurrency industry with its price going from zero to around $650.
Second in line is, Ethereum. It’s the brainchild of VitalikButerin, who is known as a crypto-genius. Apart from these two the other popular Cryptocurrencies are Ripple, Litecoin, Monero and many more that have gained popularity over time.
What is Cryptocurrency’s future?
The Cryptocurrency market is volatile, fast and really wild. Everyday new currencies emerge as the old ones wither away. Those who adopted them early get wealthier by the moment and investors, well they lose money. Even though all these factors are there, it doesn’t mean that Cryptocurrencies won’t be here in the future. Cryptocurrency is here to stay and will surely change the world in the future to come. A large number of people are buying Cryptocurrencies like Bitcoin and Ethereum. Governments, banks and institutions have all started to recognize Cryptocurrency and the way this trend is going, it seems that people won’t be able to afford whole Cryptocurrencies in the future as they change the world.
Author of this article is Joe Carnes. He is a financial advisor associated with several top global firms that provide financial assistance and advice to young investors and entrepreneurs all over the world.
