CRYPTOCURRENCY The facts you need to know
You might be hearing time-and-again about cryptocurrency and might have many questions regarding this like what it is?How does it work? And many more..
Here is brief info on cryptocurrency along with some interesting facts on this trending topic.
What is cryptocurrency?
A Cryptocurrency is a digital currency which is used as an alternative for physical currency, it is created and controlled by advanced encryption techniques known as cryptography. Cryptocurrencies typically use decentralized control which is owned by No one.
How it works :
Cryptocurrencies work using blockchain technology. Blockchain is a decentralized technology spread across many computers that manages and records transactions. When a user wants to send cryptocurrency units to another user, they send it to that user’s digital wallet. The transaction isn’t considered final until it has been added to the blockchain through a process called mining. This is how new cryptocurrency tokens are usually created.
As the raise in digital currency started, different types of cryptocurrency came into existence. While not all the cryptocurrencies have the same value, as of April 2021, there are over 10,000 types cryptocurrency like Bitcoin, Ethereum,XRP,Tether,Cardano and many more.
Top 3 Cryptocurrencies:
There has been numerous cryptocurrencies that are traded publicly, In those the top 3 cryptocurrencies are:
1. Bitcoin (BTC)
Market capitalization: Over $641 billion
2. Ethereum (ETH)
Market capitalization: Over $307 billion
3. Tether (USDT)
Market capitalization: Over $62 billion
Bitcoin — The topmost cryptocurrency
2008: A paper titled ‘Bitcoin’ was published by a pseudonymous developer in the name of Satoshi Nakamoto. Actually, this is the most surprising fact about cryptocurrency nobody knows who created cryptocurrency whether it is a person or an organisation while the popular is that the name Satoshi Nakamoto indicates the leading companies Samsung, Toshiba, Nakamichi, Motorola.
2010: The first ever trade of an item using Bitcoin took place, between 2 persons where a customer bought two pizzas in exchange for 10,000 Bitcoins. This attached a cash value to the cryptocurrency for the first time and the value of 1 bitcoin in 2010 is 0.06 USD
2011: There started the era of cryptocurrencies, including Litecoin, Namecoin and Swiftcoin.Bitcoin becomes embroiled in a controversy over claims it is being used on the dark web to pay for guns and drugs among quite a lot else.
2012-2017: Cryptocurrencies steadily gain traction. The price of Bitcoin uplift from around $5 to $1,000 in the period of 2012 to 2017.
While Bitcoin attracted many people in subsequent years, it captured significant investor and media attention in April 2013 when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months.
As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Bitcoin is kept secure and safe from fraudsters.
Bitcoin’s price has boomed as it’s become notable and the trusted one. Five years ago, you could buy a single Bitcoin for about $500. On or after June 2021, a single Bitcoin’s price was over $32,000. That’s growth of about 6,300%.
Some interesting facts on cryptocurrency:
Bitcoin ATMs are also available, and they are much like a typical ATM where you use your debit card to withdraw cash. But, some Bitcoin ATMs allow us to withdraw bitcoins from it and others help us to convert bitcoins into fiat currencies.
Bitcoin has an end, this is because bitcoin is a limited resource and that is why the demand and price goes on increasing as the supply goes down.
China is the largest cryptocurrency miner, and it bags around 75 percent of the mining network.
In many countries cryptocurrencies are banned because they are decentralized, and in some countries it is legal to make payments or buy goods using cryptocurrency.
The most important and the risky factor about cryptocurrency is that the bitcoin blockchain is irreversible and unchangeable, that is once the transaction is completed it is impossible to cancel it or revert it.