Given that cryptocurrency has begun to take over many of the world’s great financial system, and is only growing in size, many ask themselves, what is cryptocurrency?
For starters, there are any different types of cryptocurrencies. The first and most popular of those is known as bitcoin. After bitcoin came along what people refer to as alt coins or alternative coins. Those include Litecoin (LTC), Ethereum (ETH), Monero (XMR), and a large group of other.
As bitcoin was created, the premise behind it was an idea called mining. Mining uses a series of complex mathematical equations that have to be solved by various computers in order to dig up more coins.
The backing behind all of these cryptocurrencies is a technology known as blockchain. Blockchain works by connecting a series of computers to create ledgers that contain copies of all transactions made on the network. This makes sure that nobody can touch or edit the ledger, and that it is a true, honest piece of information.
The history behind cryptocurrency and bitcoin specifically is quite interesting. It’s creator, a man dubbed Satoshi Nakamoto, released a large document that detailed the technology and how to create it behind bitcoin and blockchain. From this, several groups of programmers worked together to create what we now know as bitcoin.
In 2009, you could get 1,309 bitcoins for the price of $1, while now the number fluctuates between $3,500 and $5,000 for a single bitcoin. This is a staggering increase.
The main idea behind the coin is the idea of decentralization as well as anonymity. These two principals have attracted a series of investors, some even being involved in various criminal activities. Regardless of the activities of a few individuals, cryptocurrency seems to be making its waves as the currency of the future, and nothing is standing in its way.