Cryptocurrency is the buzzword of the year, and everyone seems to have an opinion about its future. Cryptocurrency Prices Some believe it’s on its way to becoming the new gold standard, while others are certain it’s just a fad that will die out soon enough. But no matter what side you’re on, one thing we can all agree on is that cryptocurrency will continue to grow in value over time—provided it doesn’t get banned or something like that, which would obviously crush its value.
Bitcoin
In 2009, the first cryptocurrency was created by an unknown person or group named Satoshi Nakamoto. Bitcoin is what we call a decentralized digital currency meaning it doesn't come from any central authority like a government and isn't backed by any physical commodities. It relies on encryption and other computer-based technology to generate its coins and regulate the transaction process. Bitcoin is also known as the Godfather of All Cryptocurrencies because it's not only been around since the beginning but because it has had more success than any other cryptocurrency that followed it.
Since it’s creation there has been a lot of hype about bitcoin and all sorts of speculation on how far it could go. Over time interest dropped off considerably as other projects emerged with more interesting technology and better network stability, but bitcoin was still able to remain afloat based on its incredible first mover advantage. This meant that it’s unlikely that anything will ever knock bitcoin out of its top spot as you can easily track how many people are currently using bitcoin because of its first mover advantage and lack of a competing cryptocurrency. The fact that only 21 million bitcoins will ever be created is also significant for early adopters because it creates a sense of value since supply is so limited compared to what comes after.
With all of these factors, it’s not hard to see why many people believe that bitcoin has a lot of potential to explode over time. There’s even a name for it: HODL, which stands for Hold On For Dear Life. When buying or trading bitcoin, you have two main choices: you can buy bitcoins using regular money or with another cryptocurrency. If you choose to use regular money then your transaction will be handled by what we call an exchange since they connect buyers and sellers together and take care of paying each party while keeping their own internal database that records each transaction ever made on its exchange. These exchanges are run by large companies like Coinbase, Gemini, Kraken and Binance who handle millions of dollars worth of transactions every day.
Ethereum
The idea for Ethereum was first discussed in a white paper that was published by Vitalik Buterin in 2013. Development was funded by an online crowdsale during July–August 2014, raising $18 million worth of bitcoins, which were valued at $0.40 each at the time.
This year we’ve seen major companies start to adopt blockchain technology as they look for new ways of streamlining their processes. For example, Walmart has created a partnership with IBM to implement a food safety solution that makes use of blockchain technology and could help make food recalls much easier if an issue is found. Additionally, Estonia has announced plans to move all government data onto a blockchain system. This is significant as Estonia doesn’t even use paper currency – it only uses electronic money stored in digital accounts. Other big companies are set to follow suit and continue their interest in cryptocurrency throughout 2018 and beyond.
This is important, as it will help more people get into cryptocurrency. According to research from Coinbase, around 50% of people are interested in getting involved with cryptocurrency but they don’t know where to start or what they should do next. The adoption by big businesses could change all that and open up a much larger market for everyone involved. As time goes on we should see an increase in transactions and interest across the board, which should have a positive impact on other cryptocurrencies too.
According to research by YouGov, 15% of British men now own some form of cryptocurrency, while just 7% of women admit they’re invested.
This is great news for those who are involved, as a growing interest should help to drive up demand and increase overall value. Over time it’s possible we could even see cryptocurrency replace traditional currency altogether, but that is a long way off yet and still requires widespread adoption. What is clear though is that cryptocurrency won’t be going away anytime soon. It’s now bigger than ever, and with continued support from businesses it should continue its upward trajectory throughout 2018 and beyond.
Litecoin
A cryptocurrency forked from Bitcoin, Litecoin is a decentralized digital currency which has been around since 2011. It's also one of the first cryptocurrencies that enables instant transactions without having to wait for confirmations. The total supply of Litecoins is capped at 84 million, with approximately 54 million currently in circulation.
This coin uses Scrypt technology, instead of SHA-256. Therefore it can't be mined using Bitcoin mining equipment. It's considered a 'friendly' coin because its similar enough for BTC investors but it's also different enough that it can establish its own trading market. What makes
different from Bitcoin? Well, it takes 2.5 minutes (instead of 10 minutes for BTC) for a
block to be created. But that doesn't mean there are only 2.5 minutes per block of transactions. Transactions actually take place during creation of a new block, so time for transactions is still 10 minutes. In addition, if a miner successfully creates a block, they receive a bonus amount of coins (50 LTC).
It's also similar to Bitcoin. It uses cryptography, it uses Proof of Work (PoW) algorithms, and its source code is published. If you've been watching BTC since its inception then you're already familiar with all of those things as well, right? Also note that
Monero
As a result of its technology, privacy, and focus on security, many people consider
it to be a worthy contender for the next big thing. The rise of blockchain technology is unlikely to stop, and new developments are on their way. As crypto coins continue to compete for space in our wallets, only time will tell what becomes popular, but it’s likely that one day you might have a portfolio filled with coins that didn’t exist just last year!
Future of cryptocurrency - Second Paragraph: Overall, future-oriented cryptocurrency investors should keep an eye out for
future innovation and understand that some of today’s most promising coins will eventually fade from existence. Nevertheless, many newer cryptocurrencies are still in their early stages, so you have time to figure out which ones will last. With blockchain technology being so new, it is unlikely that we have seen everything!
It may be a while before we know whether or not
Zcash
This is particularly important because people using cryptocurrencies often have something to hide, such as when they purchase illegal items or services anonymously online.
Recently, I came across a cryptocurrency called
For those of you who are less familiar with cryptocurrency, it's an online currency that can be exchanged for goods and services. The big advantage over regular currency is that it allows for more anonymity when purchasing things. To illustrate, let’s say you buy a pair of shoes from my shop. If I were paying with a credit card, your bank could easily block or even reverse charges if they decided I was selling on their platform illegally. However, with cryptocurrency I can avoid these issues by processing my payments anonymously through a third party like
Moving on, I think you'll agree that a cryptocurrency has huge potential. However, there are still two major problems with existing cryptocurrencies like Bitcoin. First of all, they aren’t as anonymous as they could be and secondly because it is difficult to purchase them anonymously (it requires a form of ID). I can’t promise you that
conclusion
If you're reading this, it's probably too early for any of us to know what the next cryptocurrency is going to explode. But that's not a bad thing. We've been through this before, and if history repeats itself, the market will stabilize again. The only thing we need is patience and we'll be just fine!
When buying a new cryptocurrency, you should always do your research and never buy based off of hype or FOMO. However, as someone who has been around for a couple of bull cycles and bear cycles, I have some advice for newcomers. If you're looking at investing in a project which already has a working product that's being used by lots of people, that's likely going to be good long term investment. But if it's just been launched and doesn't seem to have any users yet (or only very few), it may be best to wait until they develop an actual user base before making an investment.
Patience is key. It's going to be a wild ride as everyone learns about crypto, but it's important that we keep things in perspective and don't jump ship too quickly. I've been involved in cryptocurrencies for a few years now, and I can tell you that there are going to be ups and downs along with some really crazy hype at times. But if we stick together, keep our heads on straight and just patiently wait it out—I'm confident that amazing things will happen over time!