Why is Cryptocurrency rising in popularity?
Some people are reticent about the popularization of cryptocurrencies. Others, however, claim that they are the future of money and are meant to replace traditional centralized coins controlled by governments.
The Early Days of Cryptocurrency
The first experiments with cryptographic electronic money date from the 1980s and 1990s but never really developed. In 2008, the first cryptocurrency, Bitcoin, emerged as a way to take power away from government agencies and central banks.
Nobody knows exactly who started it; Bitcoin was created by the first blockchain, an anonymous entity called Satoshi Nakamoto.
Its first units cost very little. In 2010, when one of the first users decided to get rid of his Bitcoins, he exchanged 10,000 tokens for two pizzas. In comparison, at today’s values, 10,000 Bitcoins would be worth more than $450 million!
Without delay, cryptocurrency technology became more and more popular among those looking to try something outside of traditional trading and investing.
What is Cryptocurrency?
Before knowing how to invest in cryptocurrency, like Bitcoin, it’s important to understand the differences between this new format and traditional currency.
In centralized banking and economic systems, governments control the supply of money, printing more when necessary. On the other hand, cryptocurrencies are intangible money that only exists in digital form, such as tokens. There is a fixed number of each type of cryptocurrency, meaning companies or governments cannot produce more.
