We live in a world that is heavily influenced by technology affecting every aspect of our lives. It didn’t take long before currency was affected and the idea of digital money was born. We originally didn’t have an agreed material that served as a means of exchange making trade quite tasking. Folks decided to accrue value to precious metals like gold, silver and bronze to serve as a means of barter after which the government introduced paper money (Fait money). Bank notes like dollars and euros are backed by their government authorities and pressure from supply and demand. That means bank notes have value due to force/backing from the government.
Fiat (bank notes) has a few shortcomings which Cryptocurrency sought to address. What, then, is cryptocurrency? Cryptocurrency, which is also known as virtual or digital monies, is a people’s funds intended to eliminate the role of the government in controlling its value. You know that the reception of a new idea is welcomed with subtle misguided facts like digital currencies are shams or is a vehicle to carry out fraud. It is fair to have disbelief or questions but important to consult articles or research that feeds your curiosity. The backbone of virtual money was to create a means of exchange across different countries without the bottlenecks (intermediaries) presented by traditional currencies. This type of currency is quite unstable making, ‘’a cash cow’’ on the exchange market.
Since 2009, where the world saw the first virtual money being developed, over 2000 other cryptocurrencies have been created. Crypto Money is categorized into two groups namely: “Bitcoin” and ‘’Alt coin’’. What then does altcoin mean? The term “Alt’’ is a shortened form of alternate, meaning other Cryptocoins aside, Bitcoin is referred to as alternate coins. Many folks have since suggested that alternate coins be initiated for the sole purpose of competition, while others believe they improve the flaws of existing tokens. Cybernetic Currencies apply a block-chain tech that is built on the miner (developer) being able to solve a puzzle and rewarded subsequently. The draft below explores a number of different Crypto Money/tokens used to trade:
Bitcoin was historically launched in 2009 by Satoshi Nakamoto, whose identity remains a mystery until today. This coin is basically the most popular and valued based on market capitalization (investment by various subscribers). The token operates under peer-peer consensus tech, with users being able to make transactions without their identity being disclosed. How is it issued? It was issued via a decentralized system, meaning it runs on a public platform (ledger); everyone is eligible. This ledger records every transaction and every user on the network receives a copy of such trade. The currency is traded on the exchange market and denotes as "BTC'' or "XBT". Developers introduced a "halving policy" where miners receive rewards that would be halved, for instance, if a miner receives a reward of 100BTC in 2009 and in 2010, the reward would be 50BTC.
Bitcoin-cash is a fork of Bitcoin that was created in 2017, which is referred to as ‘’Bcash’’. What then is a fork? A fork is simply a change in software used by the cryptocoins; it is usually a system upgrade. The fork can be temporary or permanent, meaning the decision is expected to be made by the developers. Bcash is popularly regarded as a clone of Bitcoin, it is used mainly for payments and its parent coin remains as a means of investment.
Ether, the first alt coin on this list, was posited by Vitalik Buterin. The creation of this currency was encouraged by crowd funding (an alternative means of sourcing finance where folks on the internet are entreated to make donations for completion of an agreed project). Ether (denomination form of Ethereum) was developed with aid of programming languages like Python, Rust, C and Scala. You must recognize that Ethereum is regarded as the network and the best platform for smart contracts having two versions namely: the Ethereum and the Ethereum classic. Traditional contracts are easy to breach but with smart contracts, breach is made very difficult.
The ripple, an American tech company involved in liquid exchange and payment and its virtual token, was denoted as "XRP". Ripple is known to transfer money with extremely cheap service fees and little or no wait time. The culture of this platform is to facilitate global payment.
Litecoin is a type of alt coin, it is denoted as "LTC" and referred to as an identical resemblance to Bitcoin. Irrespective of the said allegations, Litecoin is different, having a faster block time. Furthermore, transactions are faster with these digital coins. It was launched in 2011, with the software employed in its creation slightly different from the one used for the parent coin and has a high maximum supply. Litecoin was created by Charlie Lee with its first block referred to as genesis block. What, then, is the worth of a block? The block is worth 50LTC and there is consistent halving over the next few years; it is also purchased and sold in the mainstream trade market.
Dash, an alt coin with a ticker symbol, "Dash” and referred to as a fork of Bitcoin. It is issued based on the decentralized system and block-chain reward system as explained above. The program employed in its creation is the C and was launched formally in 2014 after it had experienced several re-branding. Initially stated, alt coins were initiated to address shortcomings of parent coins like slow transaction time. Dash is a prominent digital currency and among the top 15 traded currencies.
The idea of cryptocurrency is to break the borders that exist as regards payments across different countries. It is exciting to note that the influence of government has been highly restricted and given to individuals/users. Cryptocurrency is the future and the virtual money for the people and by the people. Alt coins seem to be churned out on a regular basis, which is the motive to improve on the currencies available, and its value grading obeys supply and demand. That is, its value is based on demand; so, you have to join the bandwagon today and ride to the future.