Here's a quick overview on our favorite topic - cryptocurrency!
The world is buzzing about cryptocurrency! It’s in the news and everyone from your sister to that one guy you met at a bar once who you thought might live in a bunker is talking about it. But, just what is this mysterious new way of buying and selling and where did it come from? Today we’re breaking down some cryptocurrency basics and exploring why this flashy digital currency has been met with such enthusiasm.
What is Cryptocurrency?
Cryptocurrency, sometimes known as crypto, is a decentralized digital asset that is not regulated by governments or international banking systems. It uses a combination of cryptography and blockchain technology to keep information safe and available in a distributed public transaction database or ledger. It’s growing in popularity for many reasons, but mostly because it can be used to send money quickly in a process that is transparent, secure, and ultimately, incredibly trustworthy.
How Did It Start?
Bitcoin is the cryptocurrency from which all other cryptocurrencies descend. Bitcoin was created by a person or group of persons who go by the name Satoshi Nakamoto. Though there has been much sleuthing and speculation and even a few well-publicized confessions, the world still isn’t quite sure just who or what Nakamoto may be. However, while the creator of Bitcoin and the blockchain is a mystery, the technology itself is an open book--literally.
The Future of Cryptocurrency
Today, other currencies have taken the foundation of Bitcoin (blockchain technology) and created new coins. There are over 1500 cryptocurrencies available today and include significant names like Bitcoin, Ethereum, and Ripple, alongside smaller offerings like DogeCoin or PandaCoin. There’s even an easy to use and understand trading game called CryptoKitties built on the Ethereum platform.
Cryptocurrencies have been in the news lately due to significant swings in the prices of certain coins. This is due to changes in regulations in countries around the world and the nature of the currency itself. Cryptocurrencies are inherently democratic because instead of a government declaring how much a currency is worth, it’s the users of the blockchain itself that manipulate the price of a particular coin by either buying or selling it. There have recently been rumblings in the crypto community about the creation of regulatory bodies to help deal with the volatile nature of the coin market.
Ultimately, cryptocurrency is still an emerging technology. There are a lot of benefits to be gained from its use, but as with any new technology, it’s important to do your research and to completely understand the market before diving in with both feet.
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