Overview of Cryptocurrency
Defining Cryptocurrency. Cryptocurrencies are extremely volatile and unique digital assets with real life monetary value, that are traded with the main goal of making profits, as well as to be used as a medium of exchange for online and real life transactions
The idea of cryptocurrency came up around 2008-2009 when the world was experiencing some financial challenges associated with intermediaries and limited access to financial services.
The unknown brainmaster Satoshi Nakamoto, developed the first ever cryptocurrency known as Bitcoin in 2009 which uses blockchain technology to ensure security and decentralization.
All cryptocurrencies operates on blockchains with different consensus mechanisms, but possess Peer-to-peer feature. Meaning transactions only take place between individuals in the absence of an intermediary.
Cryptocurrency transactions are confirmed by block miners or validators who receive some partial income for their contributions to the blockchain networks.
After the introduction of Bitcoin, there have been different preceding cryptocurrencies such as Ethereum, Tron, Steem, and Ripple which follows the patterns of Bitcoin with some innovations, but Bitcoin remains the overall boss of all cryptocurrencies.
In fact, all succeeding cryptocurrencies aside Bitcoin are regarded by some people as shitcoins, simply because Bitcoin is the father of all cryptocurrencies, and therefore more reliable and trustworthy over the others.
Most of these preceding cryptocurrencies are built for blockchain projects, whereby they serve as utility tokens.
Currently the crypto exchanges entails about 106 million users, which signifies the essence of crypto and its enthusiasts.
Cryptocurrency is profitable and also risky due to its volatility, as people who know its inner workings seize the opportunity to attain financial freedom, whiles others get doomed along the lines for some other reasons such as scam, market crash and unfavorable tradings.
As cryptocurrencies are extremely volatile, there are others that have been built and labeled as stable coins, which are pegged with the value of conventional currencies, although they also have some level of tendency to depreciate. Examples are USDT, USDC, USDTT, BUSD etc.
There are currently 21, 628 crypto coins/tokens available including Bitcoin, with 522 Exchanges (trading platforms)
In 2010 Bitcoin worth $0.0008, thus less than a dollar, but currently (04/11/2022) worth $20,931.50, although it not trading at a favourable price as compared to its previous price movements.
This is the inspiration for all crypto enthusiasts.
They buy a coin at low price with high hopes of selling high, when price of our bought coins booms or increases to their liking.
As there is potential appreciation in value, there is potential depreciation in value, therefore the need for thorough research and technical analysis before purchasing a coin.
The value of every crypto asset is based on the law of demand and supply.
The higher the demand the higher the price and vice versa, and this is influenced by speculations, social media trends etc.
Crypto is the new world order, it has come to stay, therefore make the best out of it.
Thanks for spending your quality time to learn something of more essence today.