The Brief History Of Cryptocurrency: How It began And Why You Should Care
Cryptocurrency is a digital asset created to perform as a medium of exchange or currency that utilizes cryptography to secure its transactions, control the making of additional units, and verify the transfer of assets. These are categorized as a subset of digital, alternative, and virtual currencies. These are decentralized, in other words, they are not subject to government or financial institution control. The first cryptocurrency, Bitcoin, was created in 2009. Since then, numerous other cryptocurrencies have been created. These are often called alternative coins, “Altcoins”, in short.
Cryptocurrencies are often used as an investment, but many people are also beginning to use them for everyday transactions. But why should you care about cryptocurrency? Read on to learn more about the brief history of cryptocurrency and its impact on our daily lives.
The Brief History of Cryptocurrency:
Cryptocurrency began in 1998 when a web developer known as Wei Dai proposed the idea of creating a digital currency that was not connected to any government or organization. This digital currency, known as “b-money” was proposed as an unsanctioned alternative to the traditional system of issuing currency. Wei Dai’s proposal gained traction in 2009 with the launch of Bitcoin, the first peer-to-peer decentralized digital currency. That same year, Bitcoin’s pseudonymous creator, Satoshi Nakamoto, published a paper in which he described the technology behind Bitcoin. Since its launch in 2009, Bitcoin has become one of the most famous cryptocurrencies in the world, due in large part to its skyrocketing value. Bitcoin’s trend was followed by a flurry of other cryptocurrencies. Ethereum, Litecoin, Dogecoin, and more have all been launched in recent years. Some of these new cryptocurrencies have more features than Bitcoin, such as Ethereum’s smart contracts. What Makes Cryptocurrency Valuable? The value of cryptocurrency comes from two main factors: scarcity and decentralization. Cryptocurrency is limited in supply because each unit of a cryptocurrency is programmed to only exist in a fixed amount. For instance, Bitcoin’s total supply is fixed at 21 million BTC. In addition to being limited in supply, cryptocurrency is also decentralized. Transactions are easy to track and verify since they are stored on a public blockchain, meaning they are not controlled by a third party such as a government or bank. This decentralization also helps create trust in the system, since no one can manipulate it. How Can You Use Cryptocurrency? The most obvious use of cryptocurrency is as an investment. Many traders buy and sell cryptocurrency as a means of making a profit. A cryptocurrency is also a viable form of payment, though its acceptance of it varies from country to country. Businesses, including online retailers, are gradually beginning to accept cryptocurrencies as payment for goods and services. Some people may also use cryptocurrency for other purposes, such as for remittances or cross-border payments. Cryptocurrency can also be used as a way to conduct transactions in countries where the local currency is unstable or difficult to come by due to political or economic issues. Why Should You Care About Cryptocurrency? Cryptocurrency is becoming an increasingly important part of our financial system, offering a wide range of advantages over traditional currencies. For example, cryptocurrency transactions are generally faster and cheaper than those conducted with other forms of payment. Cryptocurrency also offers greater privacy, since the transactions are all recorded on a public blockchain, with no central authority overseeing them. Another advantage of cryptocurrency is that it is not subject to manipulation by governments or financial institutions. This makes it a more reliable form of currency, as its value is determined by the market and not by a central bank or government.
Cryptocurrency is still a relatively new concept, but its importance and utility are only increasing as more people use it as a means of exchange. Cryptocurrency offers several advantages over traditional currencies, including faster transactions, greater privacy, and greater decentralization. It is for these reasons that people are beginning to take an interest in the world of cryptocurrency and why you should care about it too.