Know what is Cryptocurrency

Cryptocurrency is an exchange medium such as a normal currency such as USD, but is designed for the purpose of exchanging digital information through processes made possible by certain principles of cryptography. Cryptography is used to secure transactions and control the creation of new coins. The first cryptocurrency made was Bitcoin in 2009. Today there are hundreds of other cryptocurrency, which is often referred to as Altcoin.

In other words, cryptocurrency is electricity that is converted into lines of code with monetary values. In its simplest form, cryptocurrency is a digital currency.

Unlike centralized banking, such as the Federal Reserve System, where the government controls the value of currencies such as the USD through the process of printing banknotes, the government does not have control of the cryptocurrency because they are fully decentralized.

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Most cryptocurrency is designed to reduce production over time like Bitcoin, which creates market restrictions for them. That is different from fiat currencies where financial institutions can always create more, then inflation. Bitcoin will not have more than 21 million coins in circulation. A technical system where all cryptocurrency is based on created by Satoshi Nakamoto.

While hundreds of different cryptocurrency specifications exist, most come from one of two protocols; Proof of work or Proof of stake. All cryptocurrency is managed by a cryptocurrency mining community that is a member of the general public who has prepared their ASIC computers or machines to participate in transaction validation and processing.

History of Cryptocurrency

The first cryptocurrency is Bitcoin. Bitcoin was created in 2009 by a pseudonym developer named Satoshi Nakamoto. Bitcoin uses SHA-256, which is a set of cryptographic hash functions designed by the US National Security Agency. Bitcoin is a cryptocurrency based on a proof-of-work system.

In October 2011, Litecoin was released and became the first successful cryptocurrency to use scrypt as a hash function rather than SHA-256. This gives the general public the ability to mine litecoin without purchasing certain hardware such as the ASIC engine used to mine Bitcoin.

Litecoin began receiving media attention at the end of 2013 - reaching a market limit of $ 1 billion. Ripplecoin, created in 2011, builds on the same protocol as Bitcoin but services as a payment system - just think of it as Paypal for cryptocurrency that supports fiat currencies, cryptocurrency, commodities or even frequent flier miles.

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Cryptocurrency & Market Capitalization

Bitcoin is the largest digital currency in both market capitalization, volume, revenue and fame, but it is not the most valuable coin. NEMstake, while only having a market capitalization of $ 1,116,720, trades at $ 1,117 coins. Looking at market capitalization, Litecoin finished second after Bitcoin with Ripple closed behind.

One coin that you might know is Dogecoin. Dogecoin is ranked, on average, three on trading volume, but has a relatively low market cap - ranking number six in the biggest cryptocurrency.

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