Cryptocurrency is a digital currency, but there is no centralized authority to manage cryptocurrency transactions, unlike other traditional currencies. There were many failed attempts to create a centralized digital currency in the 1990s.
2009 marked the start of an era for decentralized digital currency when Satoshi Nakamoto created the first cryptocurrency; Bitcoin. Since then, more developers have created other forms of cryptocurrencies and you can use them to know things like Point Spread with your best odds. As of 2022, there are thousands of different types of cryptocurrencies.
This article will give you the facts about cryptocurrency including, factors that propel the rise of cryptocurrency, and types of cryptocurrencies, among others.
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Many institutions had tried to develop a digital currency to be used in digital transactions. Cryptocurrency is playing an important role, thanks to Satoshi Nakamoto for the invention of Bitcoin.
Before 2008, the idea of cryptocurrency was just a thought, in terms of white papers.
However, in 2009, cryptocurrency became a reality. Satoshi Nakamoto developed Bitcoin as the first decentralized currency. Other cryptocurrencies have been created over the years due to the rate of acceptance by the public.
One may wonder why the cryptocurrency is on the rise. Some factors make it favorable for cryptocurrency to keep growing.
All-Inclusive – Anyone who has access to the internet and a gadget that can access the internet can use cryptocurrency. There is no complicated process for having a blockchain address. All you need is an email account.
Mobility – Being a digital currency, it means that it is mobile. You don’t need to carry any form of physical currency while traveling. All you need is access to the internet and you are good to do transactions.
Quick transactions – Remember, there is no centralized authority to manage cryptocurrency. It makes the process of transacting between two parties very easy and fast compared to the banking system.
Inflation – The traditional forms of currencies are greatly affected by inflation. When it comes to cryptocurrency, this is not the case.
Capping, where there is a fixed amount of currency that can ever be in supply, helps to protect cases of inflation in cryptocurrency. For example, bitcoin has a maximum figure of 21 million BTC that will ever be in circulation.
Security – Blockchain technology and cryptography make cryptocurrency very secure. Blockchain technology makes it hard to trace a transaction, or even know the identity of the person transacting.
These, among others, are some of the factors enhancing the rise of cryptocurrency globally.
Bitcoin was the first cryptocurrency to be created in 2009. As of July 2022, the price of BTC is hovering around $20,500.
Ethereum is the second most used and valuable cryptocurrency. It was created in 2015. 1 ETH is approximated to be worth USD 4800. Ethereum has a capping on circulation. No more than 18 million Ethereum coins can be added into circulation in a year.
Litecoin was developed in 2011. Statistics for 2022 show that 1 LTC is equal to USD 68.7. Only 84 million LTC can ever be in circulation.
Polkadot was created in 2020. It has a capping of 1.083 billion coins. The maximum value of 1 Polkadot was USD 9.4 in May 2022.
Ripple is a cryptocurrency that was founded in 2012. It is unique as it incorporates both cryptocurrency and other forms of currencies for financial institutions.
Dogecoin is a cryptocurrency that doesn’t have a capping on circulation. It was created in 2013. One dogecoin is equivalent to a minimum of USD 0.08 in 2022.
Tether was developed in 2014. The founders have maintained the value of one tether to be equivalent to USD 1.
Bitcoin, Ethereum, Litecoin, Polkadot, Ripple, Dogecoin, and Tether are just six examples of cryptocurrencies. There are thousands more in existence.
There are many benefits associated with cryptocurrency. However, some challenges affect the operations of cryptocurrency. Difficulty in the valuation of the different types of cryptocurrencies poses a challenge to the users.
Ignorance is another challenge affecting cryptocurrency. Lack of information makes people make uninformed decisions on investing in cryptocurrency which they later regret.
Cryptocurrency development and usage are on the rise since its invention in 2009. Man people are embracing the thousands of cryptocurrencies that are already in existence.
This article has given the basic information on cryptocurrency. You have knowledge of the invention of cryptocurrency, factors helping its growth, different types of cryptocurrency, and even some challenges affecting cryptocurrency.