What is cryptocurrency?
When you are new to the world of cryptocurrency, we understand that there are a lot of terms to take in. Among these words are probably words you have never even heard of. So, it is smart to start at the very beginning and that is right here. Our whole website revolves around cryptocurrency, but what exactly is cryptocurrency? We will tell you in this article.
Cryptocurrency is a digital currency
Cryptocurrency is mostly a digital currency that is built with different cryptographic technologies. There are a lot of different cryptocurrencies all of which have their own purpose. There are cryptocurrencies being used as a decentralized payment method to send money all around the world. Decentralized means there is not a bank or other entity that interferes with any sort of audits within the network. These audits are being performed by the users themselves with the help of the blockchain. This is a big ledger where you can find all transactions ever made with a certain cryptocurrency. So, not only is cryptocurrency a fun investment, it is an actual payment method. You can transfer money to each other, but with some cryptocurrency, like Bitcoin, you can even pay in shops and web shops.
There are also cryptocurrencies with a completely different purpose, for example the support of content creators (YouTubers, streamers, etc) or the sending of energy surplus. But, by far, most of the currencies are focused on handling payments.
Is cryptocurrency the future?
Cryptocurrency and its related blockchain system have turned the economy world completely upside down. It was a revolutionary idea that actually works very well. We notice that all different cryptocurrencies that exist nowadays are getting more and more popular. The reason for this is the increasing amount of new digital coins coming to the market. All these coins are coming to the market with a specific solution for an existing problem.
Of course, we will not cancel our normal bank account to fully focus on cryptocurrency, but cryptocurrency is going to play a big role in the future. You can see that increasingly more big companies are starting to use the technology behind different cryptocurrency.
Also a lot of governments are developing their own cryptocurrency.
The first cryptocurrency
The first cryptocurrency that entered the market is probably known to almost everyone, it was Bitcoin. In January 2009 the digital currency got introduced to the world and from that moment on Bitcoin got more popular by the day. Because the project of the Bitcoin is open source, everyone is able to view and use the underlying code. That is also one of the reasons we have, besides Bitcoin, other digital coins like Ripple, Ethereum, Tron, VeChain and many more.