Takeaway: As we proceed ahead in time, the payment methods and the types of currency used are not the same. Conventional payment methods are safe and sound but are not as fast and easy to use as cryptocurrencies.
Cryptocurrency has changed the market. It is indeed a game-changer! The value of it has increased drastically in the covid-19 era. More and more people are planning to invest in this payment method due to the drastic market value increase.
Let us have a look at the full overview of cryptocurrencies, their types, and about.
What is a cryptocurrency?
The origin of crypto- stands for “cryptography,” which is a technology that keeps information secure and hidden from attackers.
You may have heard of cryptography in the history class – it was used as a communication method to send and receive secret messages by the Allied Forces during World War II.
In our day, computer experts are using cryptography to make their application more widely known. One of those ways is cryptocurrency!
Decryptionary.com describes cryptocurrency as “an electronic currency made by technology that controls its operations and protects transactions while hiding the identities of its users.” In the meantime, don’t forget how digital currency is made, and instead, focus on what it does.
It is shared because it operates with many different people and companies, instead of just one company, like banks. This way, no one has control over transactions or cryptocurrencies involved, and you do not need to trust a single company (like a bank) to manage your money.
Types of cryptocurrencies
In 2008, the idea of Bitcoin was introduced. A man named Satoshi Nakamoto published the White Paper online. Please note that Satoshi Nakamoto is not a real person. Even today, nobody actually knows the real name of the creator of Bitcoin!
At the time, no one knew that Bitcoin would be what it is today. No one knows that it will be the beginning of a great technological revolution… but it did.
You probably want to know what happens next. Several years passed when Bitcoin’s main use was to trade goods and services on the black web. Have you ever heard of Silk Road? Yeah, that’s what I’m talking about. Bitcoin casinos provide a stage for gambling with it.
In 2013-14, Bitcoin grew significantly. After that, slow down a bit. But in 2017, the Bitcoin market went up, up and down. During this time, it went on and on.
In December 2017, Bitcoin reached a price of $ 20,000 per Bitcoin. So, anyone with 50 or more Bitcoins became a millionaire. In January 2015, 50 Bitcoins would have cost you just $ 10,000. That’s a $ 990,000 profit! A Bitcoin news aggregator can provide a better figure of the data given above!
Next, we have altcoins. Currently, there are over a thousand altcoins available! But don’t let that number scare you – most altcoins are just some Bitcoin types with little change. Thus they got the name ‘altcoins.’
It is important to understand, however, that not all altcoins are different versions of Bitcoin. There is something very different, very different from Bitcoin, and with very different goals/objectives.
3. Tokens (dApps)
The third major type of cryptocurrency is brand – the same type we were talking about! Of the three main types of digital currency, these are the ones I find most interesting. Compared to the other two main types of digital currency, they are completely different because they do not have their blockchain.
They are used on dApps (used applications); these are the apps I told you about that can be built on blockchains like Ethereum and NEO. DApps are designed to use smart contracts, which is why they use tokens.
Their tokens don’t have to represent something tangible like electricity or a house, though. They can be used to purchase items on dApp. It could be that it could be used to get certain benefits – things like discounted voting fees.
So, this was a brief overview of cryptocurrency and its types.