Hello! Today we bring to you the third one of the four best articles of CrispyTech, which is about cryptocurrency and its history. This one is going to be a blog and namely the last blog of our website. So, brace yourselves, and let’s jump right into it.
You may have heard about cryptocurrency and its popularity. Did you ever feel interested in knowing more about cryptocurrency? This article will learn about cryptocurrency and its history, brand value, legal and moral issues, the pros and cons, and much other information that may enrich your knowledge base.
Cryptocurrency and its history
The idea of cryptocurrency came from the term ‘cryptology’ in Computer Science & Engineering. Cryptology is protecting data when two persons or devices (or even more) communicate between themselves. This branch of computer science has been in practice for about three to four thousand years. People implemented this idea more digitally when computers and other intelligent devices came. And if we can use this bitcoin type thing to create a particular virtual currency, which can be used to handle business transactions easily, what else can it be called?
Yes, it is cryptocurrency. Basically, the definition of cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system cryptocurrency, rather than by a centralized authority. The most famous cryptocurrency in today’s world is “Bitcoin”. Bitcoin is a cryptocurrency that was once worth only five dollars but now one bitcoin is worth almost around forty thousand dollars. In Bangladeshi taka that is almost 3384477 taka. Isn’t that crazy.
History and background of Cryptocurrency
The cryptographer David Chaum first thought about these virtual coins. He developed a cryptographic system called eCash in 1983. Twelve years later, DigiCash, another virtual system, was developed by him that used cryptography to make economic transactions confidential and protected.
A funding crisis was affecting everyone, including America’s superpower, which was booming in 2008. Due to this sizeable economic disaster, the coins were losing value faster and faster.
In 2009, Satoshi Nakamoto created the first cryptocurrency ‘Bitcoin.’ The identity of Satoshi Nakamoto is still secret, and experts think of this name as a pseudonym.
Objectives behind the popularity of Cypto
What were the objectives behind the invention of cryptocurrency? The main goal and target were to create a new way of payment that could be used internationally, decentralized, and without having any financial institution. Cryptocurrency and its history have been the story of viral topics always since a decade.
What drove Satoshi Nakamoto to create his cryptocurrency? It was that big economic crisis that affected millions of citizens. The need to make people see that there is also another type of money and system, which is not the conventional one, can also benefit. This was the main reason why cryptocurrency became popular at that time.
How Cryptocurrency works
Cryptocurrency works similarly to credit cards or PayPal, except you exchange digital assets for goods and services instead of dollars. To make a transaction with bitcoin, you must exchange currency with a peer using a digital wallet. A cryptocurrency wallet is a software that allows you to transfer funds from one account to another. Cryptocurrency and its history have been connected, therefore.
To complete any transaction, you need a password known as a private key—the private key works like a bank account. You can have multiple keys and own all the funds sent to those keys. Transactions are recorded on a public ledger, which shows the transaction totals without revealing the parties’ identities.
Cryptocurrency mining is used in this system. It is the process that is required to verify transactions. It involves a massive amount of computing power and complicated algorithms, but those who successfully solve problems through mining can earn reward coins, tokens, or transaction fees.
Cryptocurrencies’ records are maintained through blockchain, which is an online ledger and transaction log.
Digital records of transactions, certificates, or contracts are contained in blockchains. These can only be added to rather than changed or deleted. This independent transaction log, crypto-converts insist, is far more secure than institutional digital accounts or paper records, which could be hacked.
The Most Popular Cryptocurrency and its history
The cryptocurrency and its history that is most famous and most talked about is bitcoin without any doubt. Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from users on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. That is also actually the definition of blockchain. The person who works with blockchain is called the “Blockchain Developer”.
The youngest billionaire in the world is also a blockchain developer. His name is Kevin David Lehmann. He became a billionaire in 2017 at the age of only 26. That is how powerful and famous cryptocurrency, bitcoin, and blockchain development is. If you want to be a blockchain developed then start learning from today.
Bitcoin was launched on 3rd January in 2009 and the price of one bitcoin was when it was launched was only 0.0008 dollars. Can you just believe it only 0.0008 dollars? The recent price of bitcoin was around thirty-three thousand dollars and the highest price of bitcoin was around almost forty-four thousand dollars. It went from .0008 dollars to forty thousand dollars in just only 10 years. Cryptocurrency and its history are very interesting.
Bitcoin is created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services but the real-world value of coins is very volatile.
Bitcoin is the future. If the whole world accepts bitcoin the banking system will collapse and the world economy will be very unstable. So we should consider the pros of bitcoin and also be careful of the cons.
Pros and Cons of Cryptocurrency and its history
- Protection from inflation
- Self-governed and managed
- Secure and private
- Currency exchanges can be done easily
- A significant pro of cryptocurrency is that they are mainly decentralized.
- Send money anywhere in a cost-effective mode of transaction
- Can be used for illegal transactions.
- Data losses can cause financial losses.
- Though decentralized, still operated by some organizations.
- Adverse effects of mining on the environment.
- No refund or cancellation policy.
Conclusion to Cryptocurrency and its history
Cryptocurrencies are being popular nowadays. In the future, we may use it in broader sectors. Though many countries announced these currencies illegal, in the future, governments may allow these considering the opinion of the majority. Cryptocurrency is still a matter of interest to the masses people, but there are many more hidden issues in these currencies. Time will reveal those. The topic named Cryptocurrency and its history is known to us right now. So, we are knowledgeable about the trendy topic of today, Cryptocurrency, and its history.