Currency loops all of man’s existence; it seems like a very simple concept, after all, it's only money, and that's just what we use to buy the things we want and need. We get paid, and use that money to pay the bills, buy our food, and purchase goods and services. We might decide to save some of it or invest it in some value appreciation system like real estate or stocks; all in all, it seems like an objectively simple concept. In fact, we can say that evolution of currency has influenced human civilization. It has fueled so many wars, and at the same time stopped so many. Nations and cities partly excite today with the advent of currency. That is why it is unavoidably difficult to overemphasize the significance of currency in modern life. In recent times, currencies of this era have also been modernized as well. In modern times cryptocurrencies has become a term that pops up in almost every aspect of life that involves currency. Let’s just say it has taken over the digital currency sector of the world. You must have probably heard of it or you know so much about it already but you still need some basic understanding about what cryptocurrency is all about, then you are welcome as I take you through the basics and let you in on valuable insight to cryptocurrency.
From 2009 through to 2012, very few people knew about the existence of cryptocurrency talk-less of Bitcoin, but by the end of 2013, the computer frameworks mining Bitcoins were faster above 250 times than the combination of the processing capacity of the first five hundred most powerful supercomputers in the world. At the end of that year, the currency’s value in US dollars was fifty-six times higher than it was in January of the same year, the biggest yearly increase in price, in record of any inventory in history. Some People are willing to pay an exorbitant prices in order to have bitcoins, just like going thesame stress to accure a bar of gold or shares of a highly valuable blue chip company, because they believe either that its value will increase over time or that it will be a stable store of value. The total possible supply of bitcoin is absolute, so the more consumers and merchants make use of the cryptocurrency, the more the value will appreciate as well as its benefits, and the more desirable the currency will tend to become as we can see in our present time.
Some economist have been scoffing at the concept that a digital currency, which is a form of monetary exchange that only existing online with no central bank or government backing could ever be adopted widely as a means of payment, much less with a tendency to replace traditional currency. Even worse is that to some institutions, Bitcoin seems like a reputational poison. We can consider it to be the biggest development in finance since banknote were invented, though this cryptocurrency has already gone through alot of its fair share of scandal. In late 2013, the biggest headline it has yet garnered connects it intimately to the online black market silk road. While to so many people cryptocurrency now seems like what money has long aspired to become: a method of exchange which is infinitely divisible and transferable instantly; a keeper of value that is lesser than gold, but more like the essence of gold, the value itself apart from the dead metal stateless, rootless, weightless, capable to encompassing the universe easily just like a mile moving capital resources to where it is needed the most, or just like a man in flinging out handful of seeds to make flowers bloom in the deserts of Africa. Simply, Bitcoin seems like money’s dream of itself. In fact, Bitcoin is a triple threat to established capital markets, due to the fact that it functions just as a store of value, gold; it also functions as a means of payment for online transactions, just like paypal or credit cards; and also as an international transaction system like western union or MoneyGram.
You must have heard of Erik Finman, if not let’s talk about him. He was a young man who made a wager with his folks that if by 18 he was already was a millionaire; they shouldn't pressure him to go to college. All thanks to his interest and investments in cryptocurrency (bitcoin) and the current all-time high valuation, he won't have to get his degree after all. As at when bitcoin was valued at $2700 per coin, he owned 403 bitcoins, which total value was at $1.09 million. He additionally has other little investments in different cryptographic forms of money. Finman started putting resources into bitcoin in May 2011 at 12 years old, on account of a $1,000 gift he got from his grandma and a tip from his sibling Scott. Surprisingly, his parents, who wanted him to pursue his Ph.D at Stanford, agreed to the bet. Finman sold his first bitcoin in 2013, when they were esteemed at $1,200 each. With the $100,000 Finmanstarted an online instruction organization called Botangle in mid-2014 that would permit understudies like him to discover instructors over video chats. He also used his new found fame to move to Silicon Valley, where he did some fun things like meet Alexis OhanianReddit co-founder and traveled to the far corners of the world. If Erik Finman had invested in some other blue-chip company at that point, he might have ended doing his Phd and fulfilling the dreams of his parents, just like his siblings had to.
All this and more even prompted some of the world top billionaires to also invest into cryptocurrency, because of the promising future everyone envisage the digital currency in the next decade. One Roger Ver, who was already a millionaire by the time he stumbled upon Bitcoin in 2011. He soon became one of its biggest investors, putting in capital for more than 12 startups and converting a large part of his wealth into digital currency. When its value increased, his net worth increased as well. He was a strong libertarian, and saw Bitcoin as an antidote to government coercion and taxpayer-funded wars. Also, Charlie Shrem, a middle class jewish young man from Brooklyn, with a vision of joining the tech world, cofounded one of the most successful early Bitcoin startups, he was the first to get more than $1 million in startup capital. Be that as it may, he couldn't deal with its fast development and went astray. His colleague Erik Voorhees also made a huge amount of money from selling his Bitcoin betting site and went ahead to develop a digital currency startup.
The deeper I go into all this, the more obvious it becomes that, just as the revolution of digital currency promises to make itself felt around the world, so the revolution of cryptocurrency intersected with some of the largest issues and event in this time such as the great recession and financial crisis, the reining in of Wall Street, the Silicon Valley startup culture that now illuminates worldwide free enterprise, and the ascent of the computerized economy which has happened as well.In our world that is constantly developing, a proceeding with absence of money related incorporation and, in developed countries, a criminalized government system that stumbles business visionaries every step of the way. More than the technology, Bitcoin starkly illuminates competing ideas of money and liberty, competing visions of human actions. Like internet, which its invention came with a lot of mockery, bitcoin increases the scope of what is technically possible. Its advent, defuses theories about privately issued currencies, economic justice and cross-border trade systems that were politically impossible to put into practice, or could finally be tested.
If Bitcoin is a financial innovation deserving serious consideration, it is also a proof of the eccentricity of the web. The Bitcoin system is open-source, this means that anybody can analyze the codes that makes it work, unlike the software developed by most profit oriented organizations. Satoshi Nakamoto, Bitcoin’s notable founder made it in a way that has being adopted by other succeeding cryptocurrency developers after him. By the year 2016, many technologist who were uncomfortable with Bitcoin’s trending reputation back then, did their best to change with the changing world, speaking more generally of cryptocurrency or blockchain, the primary technology of Bitcoin’s payment framework. Why you hear more of bitcoin than all other cryptocurrencies is due to the fact by middle of 2016, after a moderate ascent in value after a long time of lower costs, the cost of bitcoin went on an ascent hitting $720 and again boosting the money's market top above $11 billion. Maybe a some people would be sufficiently haughty to assert that they comprehend what it will do next. Be that as it may, till date, Bitcoin has shown its resiliency over time by hitting 10 times what it did the following year 2017 at a record high of more than $7200 a coin.
But how was this possible? A person like Satoshi was able to accomplish this achievement when it had evaded the world's greatest innovation firms and all other cryptographers and coders? How did an innovation that a couple of years prior was not considered important by anyone, now we can hear of it from individuals such as 50 cent to people such as Bill Gates. Just how large an impact will Bitcoin have on us all? Companies’ established based on bitcoins are growing as fast as possible. Subsequent to disregarding it for the initial couple of years of its reality, more financial specialists, investment firms, Goldman Sachs, the New York Stock Exchange and very rich people like Richard Branson and Peter Thiel have chosen to invest more than $1 billion of investment capital on digital currency businesses. The impact of cryptocurrency, is now seen clearly, and looks like it will not be restricted to the scene of commerce and finance but will be seen also in sector of digital identity, citizenship, taxation, property rights, surveillance, privacy and contract law and coporate governance. Even as its users reap it’s benefits, it is also making the global economy vulnerable in various new ways.
This is a write-up to help you understand more about how a technology niche gained global attention, and what happened to it from its inception. This is an attempt to reckon with what the future might hold for the all of us. After all not only vast sum of money is needed, our ideas about cryptocurrency itself might be at stake. Cryptocurrency (bitcoin) began not in an unobjectionable dawn but in the shadows that lumps cryptographers, free stakers, hackers, teenage futurist, entrepreneurs and so on. Although people are still dissenting from consensual reality, holders of grudges against big government and banks, group of people committed to starting the fires of creative destruction. All these and more prompts more awareness of cryptocurrency. For a long while only the powerful could enjoy such benefits that cryptocurrency can give. Maybe bitcoin and other cryptocurrencies have made the move to make such privileges open to all. Is it going to last the taste of time? This is a question that all need to consider and provide answers to.