Cryptocurrency was first created in 2009 by Satoshi Nakamoto when he created bitcoin which is just a type of cryptocurrency. A basic definition of cryptocurrency and bitcoin would be that these are digital money that people can exchange with someone anywhere in the world without restrictions or borders.
Before, if someone had US dollars and wanted to buy shoes from somebody in India, this person would have to take her US dollars, go to the bank and exchange these for Indian rupees. After that, she can take these new dollars and go buy her shoes. The fact is that the amount of rupees that one dollar can buy is changing almost every second. The value of the money is changing because private entities like the Federal Reserve and the government both play a part in manipulating the value of dollars. Furthermore, if you’re interested in a loan to get money, look these up cashcomet.co.uk to read a blog about the benefits of borrowing a personal loan.
The goal with cryptocurrency is to create a decentralized worldwide digital currency. It means that cryptocurrency like Bitcoin doesn’t rely on banks, the government or any private entity like the Federal Reserve to exist. So now someone can buy things and exchange money from anyone anywhere in the world without worrying about exchange rates or banks or borders. Moreover, it’s not possible to just create more cryptocurrency to change the value of it like how the Federal Reserve is able to just print more bills.
It’s not possible to just create more bitcoin, it has to be mined using different complex computer algorithms. However there is a limit to how much bitcoin people can mine. Indeed, a person can only have a total of 21 million bitcoins in existence. Once someone hit that number, he will not be able to create or mine anymore bitcoins. The mining process is complicated but it’s important to understand that there is a limit to how much cryptocurrency can be created and there is currently no way to exceed that limit, people can get further information on all asset bank. This way it’s impossible to devalue cryptocurrency the same way it’s possible to do it for paper dollars by just printing many of those.
What are the different types of cryptocurrencies?
There are different cryptocurrencies on the crypto market like Bitcoin, Ethereum and Litecoin which all have their own properties but they all follow most of the basic cryptocurrency principle. The exception is Ethereum because when Ethereum was created, the founders didn’t put a cap on how much Ethereum could be created