Cryptocurrency was originated as a covert project that was assumed to be created by an unknown person who named himself as Satoshi Nakamoto. Until now, no one knows if Nakamoto is even a real person. On 3 January 2009, the first block of Bitcoin was successfully mined, and it marked the dawn of cryptocurrency.
A decentralized monetary system
Money in the real world did not spontaneously take the form with which we are familiar today. In the beginning, there was only a barter system. It is a trading system that allows two stakeholders exchange their possessions that are equal in value. Later on, as civilization developed, humanity’s needs became more sophisticated. Then a value of a good was shifted from the object itself to another. One kilo of meat was worth three silvers, for example. An in that stage, silvers and other rare and counterfeit-proof materials were regulated by the authority to resemble what we now call as money.
As a result, the authority was thriving ever since. And in the development, people who bear arms no longer monopolize the valuables. The economy has shifted to a less savage course, which has given birth to bankers. And to cut the story short, too many stakeholders are involved in our money now. The government demands the tax, and the banks also ask for their own portion of the profit. Our value depends too much on outside factors that the cryptocurrency has always been trying to eliminate. And that is the vision of the virtual money.
Cryptocurrency resides only in the digital realm
Cryptocurrency does not take any physical form. And it has its value only to vendors who accept trading with it. Even if the majority of the internet users are still using the conventional monetary system, the number of vendors who are willing to adapt to change is also increasing.
Cryptocurrency is a result of a very complex logarithm puzzle. And to create one value, you need to solve the puzzle. But the difficulty of the puzzle increases exponentially. Today, you need to a have a power of an entire island in the size of Ireland to mine just one bitcoin. To non-specialists, the mining will seem like turning on an enormous energy-consuming computer for twenty-four hours and seven days.
The promising value
Cryptocurrency is not worthless at all. In fact, in 2017, one Bitcoin reached 17,000 USD value. And that phenomenon explains what many people have been investing in this technological marvel. From idle-cash to retirement investment, cryptocurrency has attracted the courageous people to try dealing with it.The site will teach you thoroughly on how profitable it is to invest in cryptocurrency.
But cryptocurrency is not without fluctuation. There are even skeptics that compare it to economy bubble. It just waits for itself to burst sooner or later. The required resources to mine one unit is also enormous and a waste of energy. And even if the aim for it is to make people’s economy detached from the banks, newer cryptocurrencies are emerging. This can create a competition that may lead to the condition of how our current monetary system is. Besides, what is the point of a decentralized monetary system if there are many of it?…