The cryptocurrency market is only a decade old and it has one of the most intriguing ecosystems you might be interested to study. Although many people only know about bitcoin, there are many other cryptocurrencies out there that are gradually gaining ground. The intrigues of the system include an anonymous ecosystem that offers an amazing way to transfer money between people.
There are many amazing facts about cryptocurrency that you may be interested to know about, here are few.
No one owns it
Although the idea about cryptocurrencies was born about three decades ago, the actual implementation happened in 2009, and the most interesting thing is that the founder is a ghost. Basically, no one owns the first and most successful cryptocurrency, the bitcoin.
The creation of bitcoin is credited to Japanese by the name Satoshi Nakamoto, but no real connection has ever been established. No one has come out to claim ownership of any code used in creating the currency, and it has remained open for individuals to mine and receive commissions and rewards.
Unlike currencies that you are used to, cryptocurrencies are extremely volatile. Back in 2009, one bitcoin was worth only $0.003, but today its value has risen beyond $5,000. By December 2017, the value of one bitcoin was hovering at around $17,900 and growing, but it later fell and today it stands at around $6,000. That’s to say if you are paid $10 for something using bitcoin, the value may be different before you receive and withdraw the money.
The value of most cryptocurrencies swings dramatically and is mostly pegged on speculation and perception because many people in the industry use the coins as a way to trade rather than as a solution for the transfer of money and value. Crypto.Review has put up a comprehensive review that exposes all the intrigues surrounding cryptocurrencies that you must know about before you join the bandwagon.
Lose your wallet, lose your money
Your crypto wallet is the most important thing in the entire trade. Losing it means your money will also be lost. The system lacks a central point where you can generate codes, so once you lose your wallet or the current code, there is no way you can find it. That’s why you are advised to keep your access codes well because someone else can also use them to send money from your wallet.
Decentralization is the driving force
Probably you are wondering why it would make sense to stick to cryptocurrencies when there are other currencies you can use. The main reason lies in decentralization. No central bank regulates or controls cryptocurrencies and that means no data is stored or can be obtained. The system is shielded from cyber attacks as one cannot invade a particular data center, which increases safety.
Cryptocurrencies operate 24/7 and offer a number of benefits to the user including shielding one from the scrutiny of other parties. This is a decentralized system that does not operate based on a specific data center. The creators of the first coin, bitcoin, are anonymous and the market is generally volatile and influenced by speculation as people buy to hold in the hope someone else in future would buy from them at a higher price.