Cryptocurrency- History and Facts
One must be living under a rock for them to not know about the revolution called cryptocurrency today. These are developing on various fronts with each passing day. It is not difficult to know how they work and what these currencies actually are. One needs to just know a few facts and understand the blockchain technology that runs the currencies before investing in them. Here are a few facts that can help have a better understanding of these game-changers.
1. Bitcoin is not the first official cryptocurrency
In 1998, a man by the name of Nick Szabo created Bit Gold. This technology functioned exactly the same as Bitcoin does today even using a blockchain to store transactions except for one small problem. Nock never figured out how to prevent outsiders from modifying the public ledger of transactions. This meant the currency was highly susceptible to anyone with malicious intentions. As a result, Bit Gold never made it mainstream and its fundamental concept of decentralizing currency would remain dormant for another ten years until the rise of bitcoin.
2. The creator of Bitcoin is yet to be found
In 2008, an anonymous user, under the pseudonym, Satoshi Nakamoto sent a URL link to a cryptography mailing list. This link led to a document entitled Bitcoin – a peer-to-peer electronic cash system which detailed a brand new internet currency. One that didn’t rely on banks or institutions, but on cryptography and computer power instead. In order to create this payment network, Satoshi used a blockchain that would act as a public list or a ledge updating consistently with each transaction. Users would remain completely anonymous behind a pseudonym of letters and numbers. The operation would run completely autonomous from any government or organization and no personal information would be necessary to participate.
3. Anybody can mine cryptocurrencies
If you have a spare computer and a graphics card lying around, you can potentially engage in a process called mining. Mining or proof of work was a system developed by Satoshi to allow users to devote part of their computer power to solve transactions on the blockchain. As a result, the miners get a bit of profit in the form of rewards. The rewards are nothing but bitcoins. This way new bitcoins are introduced into the economy and everyone gets a more secured transaction network. In the early days of Bitcoin, users could mine with their laptops but the difficulty has risen much higher since then. Nowadays miners use specialized hardware units that are designed specifically for solving cryptographic puzzles.
4. Cryptocurrencies are volatile
As many will remember though with this massive flood of currencies came increasing speculation and the possibility of a crypto bubble known infamously as the great crypto crash of December 2017. In a span of just one year, the price of bitcoin lost nearly 80% of its value. Many people compared this to the dot com bubble of 1994, where thousands of startup tech companies began rising rapidly in stock price only to plummet to near zero.
Cryptocurrencies are a whole face of future uncertainties, censorship, and yet remarkable promise as we approach the very real possibility of becoming a surveillance society. It seems that cryptocurrencies may be one of the only real avenues of escape from total government control. Whether you value privacy, faster transactions, or complete control of your assets it’s safe to say that we’ve only just begun scratching the surface on what will be known as an era of a financial revolution.
Amidst these facts & even myths, marketing cryptocurrency is becoming paramount. Popular cryptocurrencies are gaining momentum & even the budding ones are up in the race with right strategies offered by crypto marketing companies.
A revolution has begun; which side are you on right now?