Since the early 2010s, you've probably heard the term 'cryptocurrency' a few times, right? Famous businessmen, inventors, big-shot financiers—the cream of the crop of the business world have slowly but surely accepted cryptocurrency as part of their vocabulary. But what is cryptocurrency? Why is it that some of the most important people in the world are so hung up about it? And will it ever affect you in any way? Simply put, cryptocurrency is the future of finance. Over the years, money has changed through various mediums and this is yet another evolution the world is eager to explore.
What Is Cryptocurrency?
In simple terms, Cryptocurrency is a type of digital currency used for online transactions. It is not the digital version of an already-existing currency but rather a new form of currency all on its own. Therefore, it has little to no relations with banks, financial institutions, and the like and relies solely on its own technology. Nevertheless, can be used just like money. You can use them to pay for goods and services from businesses that accept them like All Luxury Apartments. It's important to note, however, that the value of cryptocurrency is volatile, changing every single day.
A Brief History of Cryptocurrency
Although many people regard the unknown developer named 'Satoshi Nakamoto' as the inventor of cryptocurrency, its history actually goes way back to the 1980s. Specifically in 1983 when American cryptographer David Chaum created an anonymous cryptographic electronic money called '
ecash.' Years later in 1995, he upgraded it into '
DigiCash,' making use of software to handle this form of cryptographic electronic payments. It was the first of its kind that allowed digital transactions to transpire without interference from banks, financial institutions, and the government. Through this foundation, 'Satoshi Nakamoto' was able to conceive Bitcoin in 2009, the first modern cryptocurrency the world knows today.
The Most Notable Cryptocurrencies - Bitcoin, Altcoins,& Stablecoins
As of 2021, there are now around 10,000 different kinds of cryptocurrency around the world.
Bitcoin is the most popular cryptocurrency today by a long shot. It's even come to the point that it can easily monopolize the market altogether. As a result, the term 'cryptocurrency' itself has become synonymous with Bitcoin. This, in turn, led to the other notable cryptocurrencies to be known as '
altcoins.' The likes of
Litecoin,
Ethereum,
Dogecoin,
Wrapped Bitcoin, and more practically share equal prominence but are still comparatively low in market capitalization to Bitcoin.
Meanwhile,
stablecoins were made to provide stability to the crypto market, especially since many of them are backed by real-world currencies and assets. The most notable stablecoins are Tether, Pax Dollar (USDP), USD Coin (USDC), Binance Dollar (BUSD), Gemini Dollar (GUSD), and DAI.
Getting Cryptocurrency
Now, you're probably wondering: '
how do I get cryptocurrency?' Well, it varies from cryptocurrency to cryptocurrency. Some allow you to purchase them with standard currency while others require you to get them only with other cryptocurrencies. When it comes to Bitcoin, for instance, you'll need to install a Bitcoin wallet on your devices to start trading' For Bitcoins, all transactions are referred to as 'trading' since you're essentially swapping one Bitcoin address with another. Popular platforms for such include
Coinbase,
Coinmama, and
Gemini, among many others. Here, you can buy and sell cryptocurrency to your heart's content.
What is A Blockchain?
On the topic of cryptocurrency, you'll likely encounter the term 'blockchain' quite a lot. But what is it, exactly? A blockchain is a type of database that contains all sorts of information about cryptocurrency. They include data, transactions, and the like. Its most common use is that of a digital ledger, listing down all cryptocurrency transactions for all the world to see. Since a blockchain is decentralized, no single person or entity can monopolize it, making it open to the public. Moreover, the security that a blockchain offers make it so that all cryptocurrency transactions it contains will remain permanent.
Countries That Accept and Ban Cryptocurrency
Over the years, cryptocurrency has made quite an impact when it comes to the world's finances. As a result, there are some countries that accept and legalize the use of cryptocurrency and others that outright ban it. Those major countries that accept and have legalized cryptocurrency include the US, Canada, EU member states, countries in the Caribbean, Brazil, El Salvador, Chile, Mexico, Singapore, Philippines, Thailand, SouthAfrica, and more. In the case of Russia, Turkey, and Indonesia, however, though they've legalized the use of cryptocurrency, they have set limitations such as banking bans and not recognizing them as a form of payment. Meanwhile, countries like China, Bolivia, Morocco, Egypt, and more have banned cryptocurrency altogether.
As the world delves deeper and deeper into the digital age, cryptocurrency is on its way to becoming a legitimate force in the financial world. It's important to know about it as more countries, companies, and the like start accepting them.
