Of late, many people and companies have embraced Bitcoin and cryptocurrencies. The crypto platform offers dedicated network channels without being controlled by third party – law of any government or financial institution.
In the year 2009 Satoshi Nakamoto pseudonym, created cryptocurrency – the digital currency. This new ecosystem has offered benefits to people and companies to make online purchases and paying bills.
The network platform on which all cryptocurrencies like Bitcoin runs on is called “Blockchain technology”. This is peer-to-peer technology likeable by many in cryptocurrency community as it tends to be fastest, easy and reliable mode of conducting businesses. Bitcoin is the world’s most popular cryptocurrency.
Just like any other technology advancement, bitcoin and cryptocurrencies those who want to venture into this trade needs to under this ecosystem before putting in their money.
It is the duty of this guide to bring to you 9 facts about bitcoin and cryptocurrencies
- Disbelief in Cryptocurrencies
As the virtual technology has gained much presence in most sectors globally, there are some people who see it as a mere rhetoric aimed at scamming people. Others have a belief that it’s a bubble which will soon disappear. In an interview with CNB Warren Buffed stated that Bitcoin was nothing more than a “mirage” that will soon collapse in value.
Conquering his sentiments, JP Morgan Chase CEO – Jamie Dimon, has a view that Bitcoin is a “Fraud” and that it was worse than tulip bulbs. And warn Bitcoin institutional investors and retailers, never put their money in this business.
- Digital Currencies Prices are Unstable
Cryptocurrencies prices keep on changing as there is no central bank which controls its Exchange market price like it is the case with fiat money.
The instability may happen every hour or day-to-day even with huge digital margins. The difference comes in due to the way they are traded on the market as the crypto coins are bought and sold on various exchanges as opposed to a central location.
- Blockchain technology
The network on which all cryptocurrencies runs on is called “Blockchain technology”. By design, the network is made of digital platform in decentralized manner of computers. This layout permits transactions and payments to run in secluded and secure manner.
- Failure to Valuate Cryptocurrencies
Through central banks, fiat money can be evaluated making it possible to determine the GDP of a particular country as the transactions of the currencies can be monitored on exchange markets. Till to date, there is no formula which validates price list of crypto coins.
- Number of cryptocurrencies
With the market capitalization of all cryptocurrencies standing at 78% percent of the $500 billion by the time of writing this guide, Bitcoin was the first to be created crypto coin which clients used on the market.
Currently, there are over 2,000 cryptocurrencies and Bitcoin still falls into category of one of the many virtual coins available for purchase. And crypto clients are free to buy and sell any kind of the crypto coin of their preference.
- Cryptocurrency Miners
These are team of engineers who works 24/7 making sure that transactions passing through blockchain are accounted and verified first in order for smooth running of the network.
Cryptocurrency mining Computers that are used to solve complex equations in a competitive setting are called “cryptocurrency mining”.
NVIDIA is a powerful Micro gadget that helps miners to process crypto transactions faster.
- Denial of Governments
Despite cryptocurrency and bitcoin being in existence for the past 10 years, a number of countries have not welcomed this technology in their countries. Those topping the list are African governments. Nevertheless there are companies on the continent who are working tiredly championing it.
- Companies into Cryptocurrency and Blockchain Technologies
With a few multinational companies venturing into cryptocurrency and bitcoin technology one such company being automaker FORD which signed agreement with the government of Democratic Republic of Congo (DRC) to be monitoring the shipping of cobalt mineral resource used in car manufacturing from the mine site to the manufacturing point in America.
- Little Knowledge about Cryptocurrency and Bitcoin
As more people are used to ordinary use of fiat money in their everyday transactions, little emphasis has been put on this new technology by not showing interest when briefed or fear of unknown as witnessed in survey report conducted by LendEDU which stated that 80% of American students knows existence of Bitcoin.
It is undisputable fact that cryptocurrency and bitcoin are here to stay and this new ecosystem needs to be embraced for our own benefits.
Bitcoin is the world’s most-traded cryptocurrency which represents a massive share of the cryptocurrency that was introduced to the public and has therefore the most developed infrastructure. It is often considered to be a trendsetter in the cryptocurrency world. Bitcoin essentially created an alternative asset class and can be used in portfolio hedging strategies especially during the turbulent market.
If you’re intending to venture into this technology, just like another online investment, you need to understand it fully to avoid loss of money. And never huge amount of money you’re not ready to lose are till to date there is no institution which offers crypto and bitcoin recovery scheme in times of loose.