Cryptocurrency has been around for almost as long as the internet itself. After all, it was only in 2008 that the world’s first virtual currency, Bitcoin, was created. Many other cryptocurrencies have since entered the market, each with their own specific features and application. But how did we get here?
Cryptocurrencies are a form of digital currency that is created and managed through the use of advanced software, rather than through central banks or other government institutions. While traditional currency is issued by central banks, and can be created at the whim of the central bank, cryptocurrencies are decentralized. This means that there is no central authority that issues or controls cryptocurrencies. Instead, the cryptocurrency is produced by a network of users who install special software on their computers or mobile devices. This network is known as the blockchain, and it is this software that records transactions and verifies them, without the need for a central authority. In this article, we’ll be exploring the history and evolution of crypo-currency.
How Did We Get to Crypto-currency?
Humans have always been interested in money and trading, and historically, many different forms of money have been practiced throughout the world. Money as we know it today, with currency notes and coins, was first developed around the 8th century BC in China.
As civilizations progressed, a need for a more efficient and decentralized method of trade and store of value emerged. Various objects, such as cattle, precious metals, and even shells were used as money across the world. However, these objects were often scarce, and their supply was limited by nature. This meant that they had value because people believed they had value, and as such, they were used as a medium of exchange and a store of value.
The Birth of Bitcoin
Bitcoin was invented in 2009 by an anonymous person or group of people under the name Satoshi Nakamoto. Nakamoto conceived of a system in which any two individuals could exchange goods and services without the need for a third party to facilitate the transaction.
Bitcoin uses complex mathematics to control the creation of new units, and to verify and record all transactions conducted using bitcoins. The decentralized nature of the system means that no central authority is responsible for issuing new units of bitcoin. This aspect of the currency, along with its popularity among libertarians and anarchists, has led to it being referred to as a “crypto-currency.”
A blockchain is a public ledger that records transactions across many decentralized computers. Each transaction is verified and recorded using complex mathematical algorithms. Once recorded, the details of the transaction can’t be altered, and the record is distributed to all the participating computers.
How to Buy Cryptocurrency
Like most financial products, you’ll need to go through a brokerage or exchange to buy cryptocurrencies. Coinbase is one of the most popular exchanges in the United States. Coinbase allows you to buy and sell bitcoin, ethereum, and litecoin. Other popular exchanges include Kraken, Bitfinex, Binance, and Bittrex.
You can buy cryptocurrencies using a bank transfer or a credit or debit card. However, due to the anonymity of some cryptocurrencies, many people choose to buy them using cash. This is due to the increased risk of fraud and hacks, compared to purchasing cryptocurrencies via an exchange.
The Future of Cryptocurrency
Over the years, many have argued about the fate of cryptocurrencies. Some have even said that they would eventually disappear due to various factors, such as the growth of digital currencies such as bitcoin. Others have predicted that cryptocurrencies would become more widespread and would eventually replace fiat money.
Although many people have predicted the demise of cryptocurrencies, they have remained strong. In fact, cryptocurrencies have grown over the years, and the market is only expected to grow further. As such, it’s important to understand the differences between cryptocurrencies, and the various factors that have shaped their popularity.
Cryptocurrencies first emerged in the early 2000s, as a new way to make money via computer code. Since then, they have evolved significantly, with new forms of cryptocurrency emerging over the years.
Bitcoin, the first and most well-known cryptocurrency, was first created in 2009. Since then, many other cryptocurrencies have emerged, with competing visions and technologies.
Some of the more popular cryptocurrencies today include Ethereum, Ripple, Bitcoin Cash, EOS, IOTA, Litecoin, and many others. While some of these cryptocurrencies have come and gone over the years, the most dominant cryptocurrencies are still alive and well.
Over the years, cryptocurrencies have seen much criticism from economists, financial experts, and the financial media. Many have argued that cryptocurrencies aren’t legitimate financial assets, and that people shouldn’t invest their hard-earned money in them.
This criticism is largely baseless. While cryptocurrencies are not traditional assets, they are a new type of digital asset that has grown from the internet.
In fact, there are many examples of conventional companies that use blockchain technology, such as Microsoft and Walmart, to improve their operations.
Despite the criticism, cryptocurrencies have thrived because they offer many people a way to store value and make payments that are free of government and bank interventions. This makes them a truly decentralized form of money. As such, cryptocurrencies are likely to remain a part of our financial landscape for the foreseeable future.