While writing on this topic , their are more than 3000 cryptocurrency exists to invest or trade. Crypto currency gained a lot of popularity , when the most popular among them ” Bitcoin” value increased by more than 1000% .
People find the returns from crypto is amazing especially when compare to FD , Bond or even stock market returns.
But , the bubble burst in 2018 when the government started rejecting it as a relaible source. However , it gains the trust of the people and become the acceptable source as a payment method and transaction.
Because of the massive expansion of cryptocurrencies, it appears that cryptocurrencies have created an entirely new and global industry.
And as more and more cryptocurrency platforms and exchanges start to
emerge, more and more people will be able to use blockchain-based apps, which in turn will make the latter industry grow even more.
History of cryptocurrency
It all began in the 1990s when American cryptographer, David Chaum, created the first kind of online money in the Netherlands: DigiCash.
The technology became so popular that Microsoft Corporation tried to buy DigiCash for $180 million, intending to place DigiCash on every computer in the world that ran on the Windows operating system.
But, Chaum and his company rejected the Microsoft’s $180 million offer and collaborate with the Netherland’s Central Bank.
Eventually, it led to the demise of DigiCash in 1998, when the company went bankrupt.
The other companies evaluating with e-Gold. It received physical gold as deposits and issued the e-Gold but the prevalence of fraudulent investment scams like. Ponzi schemes, the e-Gold was also closed.
In 2009, an anonymous person (or group) that went by the identity of Satoshi Nakamoto published a white paper that expounded the source code, technology and concept of the blockchain.
He launched the successful cryptocurrency known as Bitcoin.
The first ever introduced cryptocurrency was Bitcoin . It was the first blockchain prodduct ddeveloped by the Satoshi Nakamoto in 2008.
It is created through process of mining which involves powerful computers involved in solving complicated problems.
It positioned the only crypto till 2011and later on , the alternative coins were developed named as “altcoins” to overcome the flaws in Bitcoin.
Today, there are more than 16 million units of Bitcoin that are circulating in the digital financial system and these have a total market capitalization of around $50 billion.
More importantly, Bitcoin’s already garnering increasing acceptance and support from both the I.T. and business communities alike.
As part of its gradual integration into the financial mainstream, some
economic powerhouse countries like Australia, Canada and Japan have already begun regulating Bitcoins through tax and legal measures.
Since 2009, the growth in the popularity of the blockchain and Bitcoins has surged. This surge in popularity gave birth to other cryptocurrencies, which are referred to as altcoins or alternative coins to Bitcoin.
What we Miss?
In 2011 , the bitocin was avilabe at $30 but most of us failed to invest because no one was well informed about this new technology.
And fear comes as this currency is not regualted by government.
By the time , people started believeing on this technology and started investment , the price had fallen a lot.
Now , the people are more informed and has knowledge about the concepts of crypto and blockchain technology and it is the reason that prices are touching the sky and expecting the tremendous growth in upcoming years.
How Blockchain technology works?
Blockchain is a decentralized ledger that records the transaction and makes it accessible to the public. It can be verified by anyone.
It works similar to tangible goods like a chair, table etc. For example, tangible good is proof or visible that one paid to others. Similarly, the blockchain will have a record of a transaction from one’s account to another’s account.
Each transaction is recordedas a block with a date and timestamp. These blocks cannot be altered without the permission of everyone.
The blockchain eliminates the role of the middle man or auditor as the technology itself act both as an auditor and independent. The technology has the power to replace banks that are charging the service fees for any financial transactions.
Benefits of cryptocurrency
Crypto is not under the power of a single entity or person. Although, the power is distributed among many people or members of the network to avoid the use of power abusing by a single person.
Eliminate the money printing
The government authorised the banks to print the money and it becomes extreme when the economy of a nation dragged tremendously. But , the printing of money leads the other problems such as devalue the currency. As a result , the inflation increase and value of money equals to toilet paper.
No mediators control involved
The traditional cash controlled and regulated by banks and government. The government can freeze your account or demonetise the currency as Indian government in 2016 abolish the bank notes. On the contrary , you and only you can access your crypto for transactions.
Easy access to everyone
A big portion of the world doesn’t have easy access to banks. but this problem can solve by crypto as one can access their funds through mobile phones as well.
Myths about cryptocurrency
With the new technology , the misconceptions also rumored . SSome of these are:-
Crypto are good for criminals
The crypto transactions don’t reveal the person’s identity, which leads to the rumour that it is mainly used by criminals. But, crypto is the recorded transactions that use the unique code to register every transaction.
Cryptocurrency investment require knowledge and willing to loose the money that one can do. It is one of the best investment equipment but not a rich quick scheme