Cryptocurrency and why it’s happening now
Cryptocurrencies have existed since the early 2000s and people are still confused as to what they are. They were created as an alternative to traditional currencies to make them more efficient, but over time they have become more than that. They have become a place to invest money, a new way to fundraise, and even a way to pay for things. The real question is why now? Why did cryptocurrency become so popular all of a sudden? What has changed? Well, Bitcoin is the answer
Bitcoin was created in 2009 by one or more programmers under the name Satoshi Nakamoto. We know nothing about this person or persons because they haven’t come forward yet. All we know is that they were the first person or group of people to create this new kind of currency on January 3rd, 2009. It was embraced by users who were dealing with uncertainty in their financial systems and by those who wanted to use it for illegal purposes such as buying drugs on the dark web. This caused it’s value to rise exponentially which caught governments attention and caused them to create regulations around it’s use which made some people scared off from using them altogether. This decreased the value of Bitcoin significantly but did not stop its growth completely
What is cryptocurrency?
Cryptocurrencies are digital assets designed to work as a medium of exchange, a unit of account and a store of value. They are in essence lines of code that have monetary value. The codes themselves can be used to purchase goods or services (like gold); can be used as a payment for services/goods, and can be traded as an investment for profit. Cryptocurrency is controlled by cryptography which is used to secure transactions and control the creation of new currency units.
Why are cryptocurrencies important and why now?
The technology behind cryptocurrencies is called blockchain. Blockchain is a distributed ledger that records all transactions chronologically and publicly. This means that anyone has access to the transaction records and can verify them without central authority. The public nature of these ledgers creates transparency while the cryptography makes it difficult to tamper with the records or create fake transactions.
Bitcoin was created in 2009 by Satoshi Nakamoto, but it wasn’t until 2017 when the price of Bitcoin shot up from $1,000 to $20,000 that cryptocurrencies began to hit mainstream consciousness. One of the main reasons for this was that more people began noticing the enormous potential for blockchain technology in other industries besides finance such as manufacturing, retail, media, and healthcare.
Cryptocurrency is a digital medium of exchange that uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Bitcoin, for example, is the most popular cryptocurrency.
The core idea behind cryptocurrencies like Bitcoin and Ethereum is that individuals can transfer value between each other without the need for an intermediary like a bank. The blockchain, however, was created as the underlying technology to support these transactions without an intermediary.
Cryptocurrency has been around for almost ten years now and it is gaining more popularity than ever before. More people are starting to invest in cryptocurrency because it’s not regulated by any government or financial institution; therefore, it can be used to send money anywhere in the world anonymously and instantly.
While some investors believe in its potential, others don’t think cryptocurrencies will last much longer than they already have as they feel they are too volatile and unpredictable due to their decentralized nature (i.e., no central authority controls them).
Cryptocurrency is an online currency that uses encryption to secure transactions and regulate the generation of new units. It has become very popular in recent years due to its many benefits, and it is now used by organizations and individuals all over the world.
The first cryptocurrency ever created was Bitcoin, which was designed by Satoshi Nakamoto in 2008. Since then, more than 1000 cryptocurrencies have been introduced, each with its own features and purposes. The total market value of all of these cryptocurrencies currently stands at over $250 billion, most of which belongs to Bitcoin.
While it can be used for almost anything a traditional currency can do, cryptocurrency has certain advantages over fiat currencies like the US dollar or the euro:
– Cryptocurrencies are decentralized. This means that they are not controlled by a central authority like a bank or government. Instead, they rely on cryptography (a branch of mathematics) to control their creation and distribution.
– Cryptocurrency transactions are secure and anonymous. Because there is no central authority that controls these currencies, they cannot be frozen or seized by governments or banks. They also cannot be linked back to their owners without special software that breaks their anonymity; this software has not yet been developed.
Many people see cryptocurrency as the future of money because it solves
Cryptocurrencies are a digital form of exchange that were invented in 2008 by Satoshi Nakamoto. Although it is unclear who Satoshi Nakamoto is, the invention of cryptocurrency has allowed people to make money by investing in cryptocurrencies.
Bitcoin was one of the first cryptocurrencies invented and has become one of the most popular. Bitcoin values have also increased exponentially in recent years and continue to do so today. Since 2017, Bitcoin has been on an upward trend, reaching a high of $20,000 per coin in December 2017. The current price as of January 2019 is around $4,000 per coin.
Investing in cryptocurrency is becoming more common and allows investors to diversify their portfolios. Cryptocurrency is becoming more important for investors because it offers diversification for their portfolio and high returns if invested early enough. The key to investing in cryptocurrency is making sure you know how it works before you start investing your money into it.
The idea behind cryptocurrency is that it is a decentralized digital currency that uses cryptography to secure transactions and control the creation of new units of currency. There are many different types of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple and Monero just to name a few. Each type has its own advantages over the others but they all share one common trait –
For hundreds of years, the only way to move money between countries was to send a trusted person with gold. The problem with this system is that it requires trusting that person with your gold. And even though you may trust your messenger, what happens when someone else wants your gold? That’s why the earliest banks were founded in the Italian city-states of Genoa and Florence: So you could deposit your gold and get a receipt for it.
In time, receipts for gold became so valuable that people accepted them as money. This made it easier for businesses to exchange goods and services, and trade became less about buying or selling stuff and more about taking risks on new ideas.
Countries soon began to print paper money that was backed by gold deposits in their own vaults. This eliminated the need to transport physical gold between countries. This was the first use of paper money in history.
But if paper money is just a receipt for gold, then who is holding onto all the physical gold? The answer: Nobody. Money might not be real, but Bitcoin is!
When you have a lot of money, the problem is not getting more money. The problem is figuring out what to do with the money you already have.
This is a hard problem, because most investments are not very good. In fact, most ordinary people would be better off putting their money in a low-cost S&P 500 index fund and forgetting about it.
Sensible investors can expect to get about 6% per year for their investments over the long term, after inflation. This is true even for professional investors running big funds at banks or insurance companies.
If you’re an ordinary person with a little money, investing in one of these funds will get you about 6% per year, after fees. If you’re a rich person with lots of money, it’s slightly harder to find such a fund that will take your money; I don’t know any off the top of my head (though I’m sure they exist). But if you invest $1 million at 6% per year, that’s $60k per year income; not bad for doing nothing.