“Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.”
-Thomas Carper, US- Senator
Bitcoin, one of the prominent cryptocurrency, which today has become a global phenomenon, initially emerged out as a side product of digital cash when Satoshi Nakamoto tried developing a peer to peer network so as to prevent double spending. Unexpected for Satoshi, Bitcoin emerged out to be a prominent medium, its value surging up tremendously.
Prior to beginning up with the current scenario, we shall first see the procedure of Bitcoin generation which includes a cryptologic puzzle, hence the name cryptocurrency.
Under the cryptocurrency procedure, none of the authority is authorized enough to control the same as it is a decentralized mechanism where anyone and everyone can transact as per their will and wish. It works like a crystal clear network where every single transaction is known to everyone involved but the identity of the person so involved in the transaction remains anonymous. Any of the transaction one makes has to be first approved by a miner, which once approved cannot be undone under any circumstances.
A miner can be anyone who is capable enough to solve a cryptographic puzzle which involves cut-throat competition and a high usage of computer power. The one who solves the puzzle is the one who gets rewarded with a certain number of bitcoins and this stands as the only way so as to generate or create the prominent cryptocurrency in the 21st century i.e. Bitcoin.
All the transactions so incurred under the procedure are quick and global where one can easily transfer bitcoins from one part of the world to another without the need of seeking permission from anyone. All one needs to do is download and install a software, following which one can easily deal and transact in bitcoins or any other cryptocurrency.
In order to surge up the value, the supply of Bitcoins is controlled by limiting the supply of tokens, as a result of which the theory of economics gets applied wherein the limited supply combined with high demands of the cryptocurrency tends to raise up the value of the same.
Recently, Winklevoss twins have become the first bitcoin billionaires after having invested back in 2013 a part of the bucks they received from Facebook after suing its Chief Executive Officer, Mark Zuckerberg for having stolen their idea of the social networking site.
Below is an insight of some other cryptocurrencies:
RIPPLE: The only cryptocurrency that banks tend to adopt at a great pace is ripple. It is not considered as a good store of value but more as a token to protect the network against spam.
LITECOIN: Litecoin, originally developed to be the smaller brother of bitcoin failed to find a real use case but is still actively developed and traded and is hoarded as a backup if bitcoin fails.
MONERO: Monero’s popularity as a cryptocurrency peaked in 2016 when some darknet markets decided to accept it as a currency, though the actual usage of Monero seems to remain disappointingly small.
ETHEREUM: It not only processes transactions but also complex contracts and programs making it the perfect instrument for blockchain.
AMBICASH: It is the cryptocurrency standard for trading advertisement space online with built-in rate stability mechanism.
Below is the comparison between gold and Bitcoin price in last 8 years.
Bitcoin Vs Gold Prices
Bitcoin Price Index over last 8 years
Hence, the cryptocurrency, precisely Bitcoin has brought up a revolution by surging up by a new high price index of 1500 %, continuing which will surely bring up a tremendous change in the world. Now you can either chose to stand beside and observe or be a part of history making.