Cryptocurrency

Cryptocurrency

Cryptocurrency is a virtual currency that uses cryptography to secure every transaction made, thus counterfeiting this kind of currency is very impossible to do because of this security feature.

Stacked cryptocurrency coins (Bitcoin, Ethereum, Litecoins)

The invention of the so called digital currency is not really intended by Satoshi Nakamoto the inventor of Bitcoin, which is the first cryptocurrency. In 2008, Nakamoto said that he has developed a “Peer-to-Peer Electronic Cash System,” and announced the first release of Bitcoin in 2009, which is an electronic cash system that prevents double-spending. Bitcoin is completely decentralized with no central authority or server.

The first cryptocurrency to run online as a virtual is Bitcoin  launched in the year 2009 under the pseudonym Satoshi Nakamoto. As of February 6, 2016 there is about 15.2 million Bitcoins circulating in the world. Cryptocurrency is just like a real physical money, you can keep it, spend it, and even do an investment with it. However, cryptocurrency can be wiped out by a system crash if a back-up copy doesn’t exist, since it is a virtual money and it doesn’t have any central repository.

Cryptocurrencies are designed to decrease the production of money – The first cryptocurrency Bitcoin has an ultimate cap of 21 million BTC in total. Mean to say, there are only 21 million Bitcoins can be mined, once the Bitcoin miners unlock this total number of BTC the supply will be totally tapped.

Having on hand a digital money requires ‘Mining’, while others uses to trade theirs. People behind this gigantic invention still remains a secret, no one knows who is Satoshi Nakamoto is – can’t even figure out if it’s a group or a single individual behind it.

Next article >>