Since when cryptocurrency came into being with the advent of Bitcoin in 2009, many things have followed. Other currencies have come into existence and major achievements have been recorded.
But one argument that still won’t go away is about the credibility of this digital currency. How realistic is it? Is cryptocurrency real money? What do terms like blockchain and GPU mining mean? How does it work? Are crypto companies reviewed by experts real? These questions have led to further questions. And it seems there’s no end in sight when it comes to putting to bed these fears that people hold toward the innovation.
Hence, we have decided to assemble some facts that can aid your understanding on how the crypto industry works. These facts are listed below.
- Cryptocurrency: What is it?
First things first, cryptocurrency is non-physical financial wealth relying on technology and exists in the form of tokens. This wealth is based on a complex systematic approach. This limitation doesn’t mean these virtual currencies can be exchanged for tangible materials. They can operate just as fine as traditional currency.
A token stands for a definite unit of a particular cryptocurrency, and its worth is determined by trends in the crypto market. This token can be exchange for hard currency or employed in other forms of monetary transactions.
- Mining, Digital Wallet, and Blockchain
One probable reason for the mysteriousness of cryptocurrency is how quite difficult and complex to comprehend its activities and terminologies are. But we’ll explain some here.
- Mining
This involves the use of sophisticated technological devices in finding solutions to complicated arithmetic which leads to the creation of new cryptocurrencies. This process is very essential in the furtherance of the structural base of the cryptocurrency itself.
- Digital/Crypto Wallet
This stands for your virtual account. This acts as storage for your tokens. Whatever digital currency you own enters this purse and all transactions occur from there. These accounts are safeguarded by unique passwords which allow access to the owner. Cold and hot wallets are some forms of crypto wallets that exist.
- Blockchain
This is the outcome of mining. Blockchains are footprints, records, or evidence that backs the authenticity of transactions that have occurred. Through this, more currencies are released. These blocks are linked to each other in such a way that alterations can’t occur.
- Brief History of Cryptocurrency
Satoshi Nakamoto is credited with the invention of cryptocurrency when he launched Bitcoin in 2009. Since then, the industry has seen an influx of people with novel ideas all attempting to shape its trajectory. This has led to the invention of many other cryptocurrencies such as Ethereum, gold coins, and others. It is estimated that there are more than 7000 cryptocurrencies in circulation today.
- Cryptocurrency: Prospects
Analysts have forecasted that cryptocurrencies will continue their upsurge as more and more people and institutions continue to notice their potentials and embrace it.
There are so many aspects of cryptocurrency that need to be evaluated and learned if one intends to partake in the industry. With the above, we are certain you are on the right track.