Cryptocurrency and its coins

Have you ever heard the word cryptocurrency? Is this word new to you or you have already heard it from your friends or family members? But what is really cryptocurrency and why some people consider it as the saviour of our dying economy? Before I will dig deeper to its meaning and before I will discuss the currencies involved, please allow me to explain to you the word cryptocurrency.

What is crypto currency?

Cryptocurrency is a type of currency that exists digitally or virtually and uses cryptography to secure transactions. It uses a decentralized system to operate and record transactions. It is a form of digital payment system that does not require third party entity to verify transactions. Instead of bringing cash with you and handing physical money to a store owner, cryptocurrency payments exist purely as digital entries to an online database confirming specific transactions. There is a public ledger that records all transactions being done and processed.

It is called cryptocurrency because it uses encyption to verify transactions. This sophisticated ways of coding information is being transmitted between wallets and to public ledger. The aim of cryptocurrency is to revolutionize the world of commerce. It is to make our lives easy while providing security and safety of our wealth.

Bitcoin was considered the first cryptocurrency and was founded in 2009. The real founder or founders remained unkown until this day, but they named him as Satoshi Nakomoto. Bitcoin is now considered a store of value as it will become deflationary in the near future and its value will go high and high soon.

For us to fully understand the importance of cryptocurrency and why it exists, we have to know also how it works and what are its use cases. Cryptocurrencies run on a distributed public ledger called blockchain. It is a digitally distributed, decentralized, public ledger that exists across a network. Blockchain is the technology itself while cryptocurrency is the product of this technology.

In order to own a certain cryptocurrency you have to get it through mining or you have to buy it from a certain exchange. There are so many types of cryptocurrency available in the market and one these are bitcoins and other bluechips alternative coins such as etherium, cardano, tether, etc.

Aside from bitcoin which is now accepted by other companies as their mode of payment, there are other alternative coins that have been accepted by the selected stores and companies. Thers is a humor that tesla will add dogecoin and shiba inu to their accepted currencies to pay in the future. Cryptocurrency enthusiasts are so excited for that day to come as this will be the start of the era of the cryptocurrency and for the people to accept and adapt this new form of technology. There will come a time that people will no longer have to fall in line in the atm booth just to extract cash from their cards, but instead they can just purchase or make a payment online using cryptocurrency.

Now that we know what is cryptocurrency and its usage, we will also identify what are the following coins that we can buy and hodl as a form of investments. I will give you some of the many cryptocurrencies that are available in the market and these are the following:

Bitcoin- considered as the king of all cryptocurrencies. It is the first coin that utilize the blockchain technology and it is believed as same as digital gold. Bitcoin uses proof of work as a form of algorithms. The total supply of bitcoin is capped at 21 million coins and roughly 18 million are currently in circulation. Once the mining of this coin is completed, it will surely increase its value and those who hold more will gain more.

Etherium- is the second largest cryptocurrency in terms of market capitalization. It was founded by Vitalik Buterin in 2014. Etherium is used for variety of innovative applications in web browsing, finance, advertising, gaming, etc. A lot of other big companies are supporting etherium as they believed in its fundamentals and use case.

Bitcoin Cash- is a hard forked version of original bitcoin. It is similar to bitcoin with regards to its protocol. It s believed as an alternative substitute of fiat currencies. Bitcoin cash also use proof of work.

Cardano- cardano is another alternative coin that has a promising use case. The main goal of the plaform is to implement all the best feature of litecoin, bitcoin anf etherium into one cryptocurrency:complementing the resulting mixture with a number of additional innovative technologies. A lot of people are holdinh this coin for it has a huge potential and it has a chance to go to the moon this year 2022.

Tether- one of the stable coins available in different exchanges and it is highly used by a lot of traders. This has been widely paired by so many coins to processing trading daily. Designed to be backd 1:1 by diat (US dollar), tether tokens are minted or burnt as the reserves held by tether increase or fall. In this way tether tokens are seen as a stable store of value in an otherwise highly volatile cryptocurrency ecosystem.

Conclusion: Now that we already know the value and importance of cryptocurrency as well as the technology involved with it, we can now decide if we will embrace the usage of this technology of we will continue to embrace the old ways of utilizing the fiat currency.

The advent of cryptocurrency could be a better solution to a lot of problems that we are facing today. Considering the use case and its contribution to the society, this could be the way of making our lives easy. However, we can deny the fact that only a few percentage of people fully understand the importance of this technology and even if they has a little grasp of its meaning, some would still doubt if it this is really the answer to our economic problems.

People are being divided about this topic and even our higher officials are not all in favor of it. Again, this will really depend on what you believe on. It you think that this will change your life in the near future then gl for it and invest on it. But it you think that you are already satisfied with the current fiay money that we have then the choice is yours.

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