You would have to have been living under a rock to not know about the explosion of crypto popularity across the past couple of years. What started as a niche form of investment has now become a major industry, with many people making billions as prices continue to rise.
If you’re new to all this craziness, you might be wondering: what is cryptocurrency and bitcoin? After all, digital currencies aren’t always the simplest thing to understand.
What do you need to know to understand cryptocurrency and how it works? Read on and we’ll walk you through the basics.
What is Cryptocurrency?
Cryptocurrency is a term that refers to any currency that has no physical presence. Digital currencies that are not under the control of world governments and that exist solely in the virtual world fall under this umbrella.
There are a large number of cryptocurrencies currently in circulation around the globe. Dogecoin, Ethereum, and many others have experienced high surges in value during their relatively short existence.
However, there is no cryptocurrency that is more valuable and more well-known than Bitcoin. Bitcoin remains the standard model for all cryptocurrencies and is likely to remain in that position for many years to come.
What makes Bitcoin different from other similar options? It has to do with the origination of cryptocurrency as a form of payment.
What is Bitcoin?
The emergence of cryptocurrency and bitcoin happened simultaneously. In January 2009, it was created mysteriously by a group or individual operating under the fake name of Satoshi Nakamoto.
While many people have claimed to be Nakamoto over the years, no actual confirmation of their identity has ever been made.
Bitcoin was the original cryptocurrency, the very first to hit the global stage and define this new model of finance. The main innovation of bitcoin was the virtual ledger used to keep track of all bitcoin exchanges.
This ledger is known as the blockchain, and it is stored across hundreds of thousands of computers around the world, making it near impenetrable to hacking.
Bitcoin is created through a process known as mining, which is an expensive and complicated computing process that takes a lot of power and time. There is a limited amount of bitcoin that can be created, which is where the currency derives its overall value. This scarcity is key.
The price of bitcoin, since it is not a physical commodity, is completely based on the perception of the public. The more valuable it is seen as an asset, the more it will grow in worth.
It can be purchased on this website and many other places around the web.
Answering the Question, “What is Cryptocurrency and Bitcoin?”
What is cryptocurrency and bitcoin? If you’re looking to understand these much-buzzed-about terms, the above information should be all that you need. The basics can help you to understand if this is a form of investment you should consider.
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