A cryptocurrency could also be a digital currency which is secured by cryptography. It is one of the only encryption algorithms which makes it nearly impossible to counterfeit or double-spend. Cryptocurrencies are decentralized networks based on blockchain technology which is a distributed ledger enforced by a disparate network of computers which makes it impossible to hack or manipulate it as it is not owned by a particular organization. Highlighting feature of cryptocurrencies is that they are not issued by any central authority which ultimately results in rendering them theoretically immune to government interference or manipulation.
Who invented cryptocurrency ?
Satoshi Nakamoto
The first decentralized cryptocurrency named bitcoin was created in 2009 with the help of blockchain technology it was theoretically impossible to hack by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256 as a cryptographic hash function, as its proof-of-work scheme.
Types of cryptocurrency
First introduced cryptocurrency in the market was bitcoin which had a huge impact on the market . Blockchain is still the best valuable currency in the market .Today, the aggregate value of all the cryptocurrencies in existence is around $214 billion—Bitcoin currently represents more than 68% of the total value.
There are thousands of alternate cryptocurrencies available in the open market with various functions and specifications. Some of these are clones or forks of Bitcoin, while others are new cryptocurrencies that were built from scratch.
Bitcoin was launched in the year 2009 by a private or group known by the pseudonym “Satoshi Nakamoto.” As of November 2019, there were around 18 million bitcoins in circulation in the open market with a total market value of $146 billion.
Some of the competing cryptocurrencies spawned by Bitcoin’s success, mentioned as “altcoins,” include Litecoin, Peercoin, and Namecoin, also as Ethereum, Cardano, and EOS.
Advantages of Cryptocurrency
Cryptocurrencies till today hold the promise of easy and secure fund transfer directly between two parties with comparatively less charges , without the necessity for a trusted third party sort of a bank or Mastercard company which makes it highly secured furthermore its transaction fees are far more cheaper as compared to other credit companies. Blockchain transfers are secured by the utilization of public keys, private keys and different sorts of incentive systems for instance Proof of labor or Proof of stake.
In modern cryptocurrency systems supported by blockchain technology uses a “wallet,” or account address which features a public key furthermore the private key’s known only to the owner and is employed to sign transactions.
Is cryptocurrency a good investment ?
Yes in recent years it has been a bubble for few investors had suffered a loss because of change of policies made by their government. But on contrary many analysts says that it’s important medium of storing and exchange values which makes it a valuable investment. Price of cryptocurrency will drastically rise in future and currently world has not seen its saturation point. Which makes it an incredible good investment.