Currencies, domestic or international have a “language” of their own. I don’t know about you but when I travel outside the United States, I am constantly using the calculator on my phone to give me an idea of what I’m paying for in U.S. dollars.
We are entering an age of opportunity to learn and grow with a currency that isn’t tied into banks or the government. Cryptocurrency is just that. It can be a bit daunting, confusing, and exciting while taking us out of our comfort zone.
How did this new form of currency begin? You could say cryptocurrency had a mysteriously interesting beginning. In 2008, an unknown programmer is known as Satoshi Nakamoto, whose real identity has never been confirmed, communicated solely through email and electronic messaging, introduced Bitcoin. in 2009, Nakamoto created the original rules for the Bitcoin network and released the software out to the world. It was the first cryptocurrency or virtual currency, ever created. the elusive Nakamoto no longer controls the network. The network is the property of all its users. and Nakamoto? apparently has vanished from the cryptocurrency scene. or has he?
Cryptocurrency is complex, ever-evolving, and even more confusing for people wondering if they should invest in bitcoin over stock. Cryptocurrency has its own rules, transaction processing platform, no third-party interruptions when transferring or purchasing, and users can access and pay for their currency anywhere they have internet access. It is also easiest and faster to transfer large sums of currency across international borders than money wires or bank transfers. The currency is in digital tokens. There are other cryptocurrencies in circulation, with slightly different nuances. For the purposes of simplicity, this article will address bitcoin.
What is Bitcoin? simply put, it is a currency system. Some critics say it is volatile and unpredictable. Its price determined by open-market bidding on bitcoin exchanges. I say the stock exchange, or Wall Street, can be described the same if you don’t know the rules of engagement. So why is it growing in popularity?
Because its exchange value is the same everywhere in the world, people living in countries that are subject to constant currency devaluation, high inflation, or unstable governments are purchasing cryptocurrencies to avoid losing their savings.
investors and entrepreneurs say that cryptocurrencies, like bitcoin that have no physical backing, can be sent electronically from one person to another, will be the preferred payment choice of people in countries around the globe in just a matter of years. Some say bitcoin is the preferred choice for those who use it for illegal transactions. Still, cryptocurrency experts say it’s here to stay and will transform the way money is exchanged. Cryptocurrencies span all demographics. In fact, those accustomed to using platforms such as PayPal, google pay, and mobile banking will experience a quicker use level when compared to those who are used to going to a physical bank. imagine right now there are those who have inserted a chip under their skin with their “digital financial imprint” with access 24/7. instead of an implanted chip, cryptocurrency uses a digital wallet. The wallet gives users an address where cryptocurrency can be sent from other users, but most websites require users to link to a bank account.
a bitcoin can be divided into eight decimal places, so a user can send another person 0.0000001 bitcoin. In today’s market, a bitcoin would cost about $36,077.69 United States Dollar (As of 19/06/2021). all bitcoin transactions are tracked by a decentralized network of computers around the world, not by a government or bank. Anyone can join the computer network.
The record of these bitcoin transactions on the network is known as the blockchain, essentially a permanent ledger. In order to provide a bigger return on investment, programmers within the blockchain network have to “mine” for more tokens. They compete to process new transactions on the blockchain. According to the bitcoin network rules, which are decided by everyone maintaining the blockchain, the mining reward is halved every four years. anyone can set their computer up to mine bitcoin. The successful programmer wins 12.5 bitcoin. satoshi made it such that the bitcoin network would have a finite number of digital tokens. new coins will only be mined until there are 21 million in existence, which is expected to happen in the year 2140. There are multiple ways to buy bitcoin.
Meeting in person, bitcoin ATM, wallet to the wallet by scanning a QR code and traditional cryptocurrency exchanges. Cryptocurrency still has skeptics that argue that Bitcoin is volatile, unregulated, unpredictable, and unsustainable. Of course, as more cryptocurrency pops up and gets traded on mainstream exchanges, there are bound to have more issues come up such as hacking.
For the most part, most transactions are typically people buying and selling bitcoin to each other.
So, what is the future of cryptocurrencies? Bitcoin is just the start of cryptocurrency and the technology it utilizes. Other popular cryptocurrencies include Ethereum, Ripple, Litecoin, Bitcoin Cash, and Monero. Digital cryptocurrencies are being created for all types of uses like real estate, among other industries.
Blockchain technology is useful for more than just bitcoin. it can be used for tracking ownership and digital assets. It can create new ways to do business and offer new services to people throughout the world. just think, no one thought the internet would be where it is today. hmm…
to cryptocurrency or not to crypto? Either way, the key is becoming familiar with what is changing how we view currency and adjust based on information.
