The cryptocurrency is undoubtedly one of the newest forms of money in the world today. The cryptocurrency is a digital money which is used for online transaction today and it can be used for many other purposes as well. The birth of cryptocurrency started in Japan when an inventor known as Satoshi Nakamoto invented the bitcoin in the year 2008 by an accident.
The inventor first created the bitcoin system to be a peer to peer electronic cash system but his aim was to produce something which many people couldn’t produce at first before the digital age. He announced on the production and modification of the initial release of the bitcoin, which was a new electronic cash structure which integrates a sort of peer to peer networking system which is aimed towards preventing a situation of double costs.
The cryptocurrency is a completely distributed system which uses no server or central authority. The lone most vital part of the Satoshi invention was that with the invention, he found a way to build a distributed system that operates digitally. Previously before this time, there have been numerous trials of attempts of people trying to make the digital money but they were not able to attain it.
The digital system came about when after a decade of failure which the people who had tried to create the digital cash experienced. This failure continued to persist until when Satoshi Nakamura changed the face of the digital system forever by creating the world's first digital currency which is prevalent in the activities of online businesses and transactions today. This Satoshi did by changing the trend of using a central authority to build a crypto currency and then he tried using the peer to peer platform which brought about the birth of the crypto currency system.
The crypto currency world as of today offers a host of opportunities of which one can get income and these opportunities range from investment in bitcoin, dogecoin, litecoin and a host of other sources of coins. The crypto currency is a digital currency which is created and controlled through the aid of progressive encryption methods which is known as cryptography.
The bit coin is a distributed currency that uses a form of peer to peer donation method which allows for the functions such as include the currency issuance, the transaction processing and the verification techniques which is carried out collectively by the networkers. The decentralization technique in the bit coin permits for a free use of bit coin which cannot be regulated by the government or interfered with as well. There is no central authority to control the flow of the system which can make it run slowly or move quickly to support the bitcoin value.
The bitcoin is made digitally through a system called mining, which is a process that needs a powerful computer to solve hard algorithms and crux figures. The bitcoin is currently created at the rate of 25 bitcoin in every ten minutes and the bitcoin would be topped at 21 million, a figure which is expected to increase as the years goes by and technology gets more enhanced.
These features make the bitcoin basically different from the flat currency, which is supported by the full confidence and recognition of its government. The fiat currency issuance is an extremely centralized activity which is overseen by a country’s national banking sector. The bank regulates the amount of the currency which is given in agreement with its financial policies and there is basically no upper hand of which the amount of currency can be given by the bank sector. An addition to this is that there is a local currency which is generally assured against cases of where banks encounter serious issues which can lead to its fold-up, in the government body.
The bitcoin on the other side, just like the asx cfd investment program has no such sustenance mechanisms. The worth of bitcoin which continues to increase is dependent on the investors market, which is the investors of the bitcoin market decide how the value of the bitcoin grows by what price they are willing to purchase or sell it at a particular point in the time of the bitcoin use. Thus when a bitcoin exchange fails or folds up, the customers with the bitcoin statements would have no way of getting their bitcoin money back.
The bitcoin main benefit of distribution and transaction secrecy has also made it a desired currency for a host of many illicit activities which include money laundering, illegal activities, drug peddling, smuggling, and weapons attaining. This seemingly has attracted the courtesy of the powerful controlling body and other government bodies, which include the Federal Bureau Investigation (FBI), the Financial Crimes Commission (FCC), the SEC and a host of many others.
In the year 2013, the federal body of FinCEN issued laws that explained the virtual currency exchange and administrators as a money service business, which is bringing within the domain of the government control which is needed. The same year in the month of May, the DHS suspended an account of Mt. Gox, one of the largest bitcoin exchange platform that year. The firm was detained at Wells Fargo, claiming that it went against the anti-money legalizing laws.
Then in August of that same year the New York Department of financial services gave a subpoena to 22 developing payment firms, while many of these companies handled the bitcoin, it assisted them in preventing the issue of money legalizing and it also aided in assisting in the protection of the financial assets of the clients involved.
There are consequently many alternatives to the bitcoin currency thus, despite the wide popularity and the reputation of the bitcoin, the bitcoin is currently experiencing a broad field of competition as more other cryptocurrencies emerge to compete with the bitcoin.
There are many types which have emerged over the years and consequently more keeps to emerge. To mention a few of these cryptocurrencies which continues to grow in popularity and use as it rises against the concept of the bitcoin as a whole, they are the lite coin, the ripple coins, the mint chips, the dogecoin, the grey coin, the TBC coins and a host of many others.
