WHAT IS CRYPTOCURRENCY?

Cryptocurrency is simply a digital currency, in layman’s term, an amazing innovation of money designed to make transfer of value from one person to another without the use of banks or middleman in order to get rid of long transaction waiting time and high processing fees.

It is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography. Cryptography is the process of securing and controlling the creation of new coins. Bitcoin was the first cryptocurrency created was  back in 2009.

BITCOIN started the pioneering of digital currency world in 2009 by a pseudonymous developer named Satoshi Nakamoto.

At the initial stage, minning of bitcoin was carried out from home with the use of  computers’ Graphics Processing Units (GPU’s or Graphics Cards), this requires a high level of energy consumption and in turns made it difficult for the public to mine.

Think of an average car constantly going 200KM/h), continuously mining Bitcoin. As Bitcoin became more popular, ASIC SHA-256 machines were built, effectively shutting down GPU mining. These ASIC machines are extremely powerful. Compared to a small mining rig running 4 GPUs that would have a hash rate of approximately 3.4 MH/s and consume 3600kW/h of energy, an ASIC machine could mine 6 TH/s whilst only consuming 2200kW/h.

A lot of negative things were said about it when it was established. Some said it was a scam, others said it will not last while some people said they will operate for some time and disappear with people’s money and many more. If you doubt this, google bitcoin scam, 2009.
The early miners (Those who invest in cryptocurrency in its early stage) are always the most beneficiaries of cryptocurrency. Therefore, those that were not engulfed by the negative comments then with those with foresight, invested in mining bitcoin.

Initially in 2009, bitcoin was sold at $0.5. These early miners invested in bitcoin with so little amount of money to generate thousands of bitcoins at that time. But now, they have become millionaires and billionaires. Imagine buying 1 bitcoin for $0.5 in 2009 and selling it for $910 now.
YES!!! you read it well. Bitcoin is sold for $910. The value of 1 bitcoin as at 10th of December, 2016 is $760. This then increased to $910 on 23rd of December, 2016. This is a whopping $150 increase in less than 2 weeks.

Multiplying this value with the number of bitcoin each investor has in their wallet probably 5000 bitcoins. Do the calculations yourself.
Unfortunately, that opportunity has ended. bitcoin is no longer mined and if it is still mined, it can only be afforded by the super-rich.

Cryptocurrency is now then the future of digital transaction. Investing now in digital currency such as bitcoin, lite-coin, one-coin is a good long term and sustaining investment for a secured future.

In April 2011, Namecoin, the first altcoin, was created to form a decentralized DNS to make internet censorship more difficult. In October 2011, Litecoin was released and became the first successful cryptocurrency to use scrypt as its hash function. This gave the general public the ability to mine for litecoins without the purchase of specific hardware such as the ASIC machines used to mine Bitcoin.

 

Leave a Reply

*