Bitcoin and the Journey of Cryptocurrency

Cryptocurrency started as an obscure mode of currency in 2009. After more than 10 years it has gained widespread popularity among inquisitive traders and investors. In this article, we will look at the factors that have made cryptocurrency a popular economical phenomenon.

From 2009, when a mysterious person/person under the pseudonym Satoshi Nakamoto introduced the idea of a digital currency to 2021, cryptocurrency has come a long way. The 2017 rise of the Bitcoin value, a period of bull run, where the value of the earliest cryptocurrency rose staggeringly over a period of a few months. What started with an initial value of 0.1 USD when it was released into the crypto market, attracted enough investors gradually. In 2011, Bitcoin touched the 1 USD mark. By the time it was 2018, the price of Bitcoin had surged to a staggering 20,000 USD. Since then cryptocurrency has been on the headlines. The crypto market grew substantially. New cryptocurrencies like Algorand, Ripple, Ethereum were introduced which had the potential to make better the existing structure of cryptocurrency. Multinational corporates, banks across the world have invested in this new mode of currency which promises to make the transaction easier and more efficient, than the legal tenders of the traditional banking system. So what makes cryptocurrency a better alternative to the existing system? Let us find out.

What is Cryptocurrency?

A cryptocurrency is a new form of digital currency which overcomes the hurdles of the traditional banking system. This process makes transactions easier and time-efficient. This form of currency is ‘decentralized’, as you may have heard. You might be wondering what this term refers to. This means the currency in question is essentially different from the legal tender that is issued and controlled by the national banks and the Government. Cryptocurrencies like Bitcoin, because of their decentralized mode of management are universally acceptable.

It uses blockchain technology which is a digital ledger system. Blockchain technology is a decentralized public ledger system that is maintained across computer systems known as nodes. The blockchain is a system of memory blocks placed in contiguity. Each of the blocks is a memory unit of transactional details. Every new transaction is updated into this system as new blocks which are with the existing blockchain. Due to this structure, an accurate and exact account of transactional detail can be maintained. This new system has made cross-border transactions much more time-efficient as it can circumvent the process of verification and sanction that the traditional banks use.

Facts about Bitcoin:

1. The first Bitcoin transaction was the purchase of pizzas. In 2010 when the value of Bitcoin, the first-ever cryptocurrency was minimal, it was not very widely accepted. Laszlo Hanyecz exchanged two Papa John’s Pizzas for 10,000 BTCs. At that time the value of a single Bitcoin was less than 0.01 USD. Today during the composition of this article, the value of a single Bitcoin is 45,314 USD.

1. Bitcoin keeps the identity of the user anonymous. The traditional banking system creates an account for the user which takes into consideration the user’s residential address and other social profile. Whereas Bitcoin users have a public bitcoin address that does not require the user’s name or email. Each Bitcoin user with a public address has their access key which they can use to sanction any transaction. On losing this private access key the user may lose access to the entirety of their assets. This happened with James Howells who lost access to 7500 BTCs in 2013.

Cryptocurrencies, due to their potential of catalyzing transactional processes across the world, are in high demand. Also with the expansion of the crypto market, new trading applications like bit qt bq are being developed to assist new traders in understanding the market trends in order to make convenient purchase decisions. The trajectory of cryptocurrency since its inception has revealed to the world the potential of this new currency which improves the circulation of assets and consequently increasing productivity.

Conclusions

 If you are keen on investing in crypto, you may take the assistance of similar applications that will help you get live market trends so that you can make the right decisions in time.