“Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” – Thomas Carper
Today cryptocurrencies can be considered as a global phenomenon. For those who don’t know, cryptocurrency is an internet-based medium of exchange. The most crucial feature of a is that it is decentralized, meaning that it is not controlled by any authority. The name was given as they are built on cryptography. They are not secured by people or by trust, but by math.
Did you know that Satoshi Nakamoto, is the unknown inventor of Bitcoin, which was the first and still greatest cryptocurrency, and he actually never meant to invent it? In the 90s many people tried to find a way to create a centralized digital cash system but had no success, whereas, Nakamoto raised out of nowhere with an innovation nobody believed, as many thought it was impossible to create.
Bitcoin now remains by far the leading cryptocurrency in the hierarchy. Ethereum stays quite confidently on the second place. What is interesting is that its blockchain doesn’t only approve accounts and balances but complex contracts and programs.
The revolution is already happening.
The cryptocurrency market is fast and wild. Almost every day a new cryptocurrency appears, and old ones die, some newcomers become wealthy and some investors lose money. They are coming with promises to turn the world upside down, with big stories and loud words. Hardly any survive the first months, most live on zombie coins, meaning they stay until the last bagholder has no beliefs to see return on the investment. Furthermore, banks and government are becoming conscious on the fact that their control can be drawn away.
Human errors and password amnesias can bring some obstacles to the success of cryptocurrency due to its intangible nature. Not everyone is as fortuitous as 50 Cent, who forgot that he accepted bitcoin for a release of his album and found an $8 million bitcoin bounty. There are multiple defects to this new currency, it has been reported that $2.7 million are stolen every day, which equals to $1,860 every minute.
After all, there is no doubt that cryptocurrencies are changing the world step by step. Public acceptance as well as trust will take time to acquire, but the risks of it are forecasted to be the same.