Cryptocurrency might seem complicated and impossible to understand. For some people, it stands in the same category as UFO. What if I told you, that all you need is 5 minutes to understand it all. Stop watching people making money on trading cryptocurrency, become one of them.
Bitcoin was invented in 2008. That year, a group of developers called “Satoshi Nakamoto” published a document that presented Bitcoin currency. The real identities of “Satoshi Nakamoto” are still unknown. No one even knows how many people were on that team.
The first version bitcoin v0.1 was introduced on January 9, 2009. However, the level of trust in this new currency was low, and this Internet money could be mined using personal PCs only – cryptocurrency exchanges appeared afterwards.
Interesting fact, bitcoin became legitimate in May 2010, when Florida software specialist Laszlo Hanyecz bought 2 pizzas for 10,000 Bitcoins.
MtGox was the first cryptocurrency exchange, and it still remains the most popular platform for performing various transactions.
The second client bitcoin v0.2 was released in December 2009, which could support Linux.
In February 2013, the price of Bitcoin was $31, next month it was $266. At that very moment, when dozens of users and investors paid close attention to this digital currency, its price collapsed to $65 per BTC. The period from 2013 to 2016 can be compared to a roller coaster.
At the end of 2017, the price of Bitcoin increased to exorbitant $19,000 per unit. However, in early 2018 the Chinese government banned Bitcoin around the country. The total capitalization of Bitcoin decreased by 30 billion, and of course, this influenced the Bitcoin exchange rate. Currently, Bitcoin is traded at about 3,800-4,000 dollars.
It is the second most popular and demanded digital currency in the world. Its main developer is Vitaliy Buterin. The key feature of Ethereum is smart contracts. The platform’s internal currency is Ether. Ethers are not only accepted as a payment unit but at the same time guarantee fulfilment of smart contracts. Thus, they can be called the “fuel” of the network.
The main objects of smart contracts:
1. Cooperating parties or signatories
2. The subject of the contract (rent, service, money transfer)
3. Condition of fulfilment
Ether is one of the most flexible and popular cryptocurrencies. It can perform the following functions:
1. Payment instrument
2. The form of asset storage
3. Investment Asset
Ripple is a large-scale system of currency payments that makes it possible to perform an instant money transfer, regardless of the currency type you need to transfer and the country of destination. This currency is in limited supply since there are only 100 million XRP at free access.
The advantages of this currency:
1. Working with corporations: working with banks and large corporations.
2. High transaction speed: the speed of one transaction doesn’t exceed 4 seconds.
3. Sustainable price: in comparison to Bitcoin, the price of Ripple transaction is more affordable and inexpensive.
4. Privacy: all the transactions are completely anonymous, which makes it possible to avoid filling in any financial declarations.
5. Transaction reversibility: all the performed transactions are reversible.
6. Focus on decentralization: attraction of new customers, banks, and financial providers.
Currently, the Ripple platform hasn’t become the perfect one, but it is constantly being enhanced and soon it will be one of the leading cryptocurrency payment systems.
It is a relatively new investment form, whose appearance is closely related to the formation of cryptocurrencies.
ICO is a cryptocurrency crowdfunding, which means raising money from the third parties. The main value of an ICO is an idea. The investment is raised with the purpose of implementation of any kind of idea or project. The buying party, i.e. investors, in future will be able to use tokens of the start-up to obtain services or goods, or even receive dividends in case the project is listed on an exchange.
The future of cryptocurrencies
Even considering the fact that cryptocurrencies are rapidly developing, only 1% of the world’s population uses this type of finance. The more popularization of cryptocurrency projects will be, the more it will attract users and investors who will be eager to discover the world of blockchain technologies. Globally, specialists are working on a huge number of blockchain projects that have raised amazing sums of money during ICOs and specialize in introducing cryptocurrency into our daily life.
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by Patrick Kelly, Yardoption