To define in absolute simple terms, cryptocurrency is money in virtual or digital form. The main distinguishing feature of cryptocurrency is that transactions involving it are aided by security using cryptography find here. Cryptocurrencies fall outside the purview of governmental or other centralized regulatory bodies.
Cryptocurrencies are making use of the technology of blockchain which can be described as a ledger in digital form. The most peculiar aspect of cryptocurrencies is the fact that it is not a currency in the strict sense of the word. They are virtual commodities the exchange of which occurs through https://bitpapa.com/
The process of creating a single unit of cryptocurrency is called mining. Mining is done with the aid of systems with sophisticated computational power. For the process of mining, these computers perform complex mathematical computations. When these computations are successfully performed it generates a new crypto coin that comes into circulation.
Different Cryptocurrencies
Bitcoin
Perhaps the most famous of all cryptocurrencies would be Bitcoin. Bitcoin was synonymous with cryptocurrency at one point in time. Bitcoin was released in 2009. Since then it hugely picked up momentum and popularity. Bitcoin is still the most widely and extensively traded cryptocurrency. The creation of the bitcoin is attributed to Satoshi Nakamoto. In recent years, the value of 1 bitcoin has been ranging between 35,000 USD and 40,000 USD.
Ethereum
The most sought after and most popular cryptocurrency after Bitcoin is Ethereum. Ideation began in 2013 and the final product as we see it today was released in 2015. Vitalik Buterin is the co-founder of bitcoin credited with the ideation and conceptualization of Ethereum. Ethereum allows for a variety of financial transactions without the need for intermediaries of any kind like brokerages
Dogecoin
Dogecoin, sporting the Japanese dog breed Shiba Inu as its logo, was developed by Jackson Palmer and Billy Markus. Dogecoin was developed and initially released in 2013. It is both amusing and interesting to note that Dogecoin is the only cryptocurrency to have been developed from a meme. The coin was the creators’ satirical take on the other existing cryptocurrencies, casually pulling the legs of the other cryptocurrency owners and enthusiasts. Jokes aside, dogecoin is a recognized cryptocurrency that can be legitimately traded like other cryptocurrencies. The company even reached USD 80 billion valuations. In addition, Dogecoin has the added advantage of being easier to perform transactions in comparison to Bitcoin.
Currencies other than bitcoin are often referred to as altcoin to help differentiate them from Bitcoin.
To conclude Cryptocurrencies have only been gaining in popularity with the passing years. While initially, the skeptical customers were apprehensive about burning their fingers while investing in cryptocurrencies the situation is far cry from that at present. This can be vouched by the fact that bitcoin touched its all-time high in recent years. In addition, as more and more people are being digitally literate and financially prudent the investments in cryptocurrencies would only grow skywards from now on. Even so, caution must be observed and decisions must be made after close watch of the performance of these currencies and much deliberation.
