Cryptocurrency has been in the news a solid amount recently because of its extreme volatility and ability to jump hundreds of percent in a short amount of time, but it is evidently more than that.
The technology behind cryptocurrency, known as blockchain, is where the real efficient tech comes into play. Blockchain has been praised for being responsible for Bitcoin’s massive gains in value, but throughout the industry are thousands of other forms of tokens based off of the same precedent.
These tokens work off of cryptographically technology which is widely distributed and decentralized, thus getting the name cryptocurrency. Each one of the cryptocurrencies solves a problem in some form or another, but the thing that brings them all together is the concept that lies behind blockchain technology. Blockchain has the ability to establish a form of digital identity as well as ownership and a transparent record that has never before been created. This ownership is referred to as “smart contracts.”
The worth or market capitalization of all cryptocurrencies is valued somewhere in the ballpark of between $150 and $200 billion dollars. Since the currencies are extremely volatile, this number can change drastically, quite quickly. Given that the technology is constantly increasing and the infrastructure to turn them into useable forms of currency is becoming more readily available, the value is increasing as well.
There is however one issue, which is the fact that a large majority of those 2,000 different types of coins have no real practical use beyond raising the initial money from its ICO (initial coin offering). Since ICOs were just made illegal in China, regulation has begun to drop down upon these different coins.
The hopes are high that these forms of digital currency will become the future of how we use money and contribute to decentralized financial freedom for all.