What is cryptocurrency?
Cryptocurrency is a virtual currency, which is a type of digital currency with encryption mechanisms built into them. It is kind of like a digital form of cash which can be traded online. How does it work? There are two main types of cryptocurrencies available, bitcoin and Ethereum. Bitcoin (or BTC for short) is the first and most famous type. It works by using the blockchain — the database which records all bitcoin transactions. Each and every bitcoin transaction is recorded by the blockchain and cannot be modified. In the original theory, bitcoin wasn’t intended to be a currency; rather it was used as a payment system to settle peer-to-peer trading. The second type of cryptocurrency, Ethereum, was invented as a platform to build and run decentralized applications.
How cryptocurrency might save the world
Cryptocurrencies are not just used as “digital currencies”, of course. Most of the time, they’re just used as another form of payment — except when they’re used to buy “real life” items such as clothing, computers or car parts. More and more people are recognizing the fact that virtual money can be used for a good purpose. One of them 1 Bitcoin Website. Where you can buy pixel advertising space for bitcoin and the proceeds will be used to plant trees. We don’t have to cut down trees for paper money.
The 10,000-Bitcoin pizza
Maybe everyone has heard that someone paid 10,000 bitcoins for a pizza. This is just one story among thousands that illustrate the potential of cryptocurrencies to change our world for the better. Many people have compared the Bitcoin phenomenon to the invention of the internet in the late 1980s. At the time, the IT industry was dominated by companies that had started in the late 1950s or early 1960s. They created little more than black-and-white screens in their basements and soon started to realize their technological limitations. But even then, the invention represented a major step towards the world’s increasingly globalized economy, while keeping prices relatively low and offering a fast way to communicate. At the end of 2017, the value of Bitcoin stood at more than $16,000, a 1000% increase from its value just six months earlier.
Cryptocurrencies are an astonishing, ground-breaking, and world-changing technology. They offer enormous potential to solve the world’s most pressing problems, but they are still very young. That’s why the future of cryptocurrency is still extremely uncertain. We’ll look into the possible world-changing applications of cryptocurrency in the future, but in the meantime you’re welcome to download and explore various cryptocurrencies to learn more about the technology and its amazing possibilities. What do you think of the future of cryptocurrencies?