1st may, 2021
What is CrypoCurrency
A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It is a decentralized system for verifying that the parties to a transaction have the money they claim to have, eliminating the need for traditional intermediaries, such as banks, when funds are being transferred between two entities.
Bitcoin gets all the headlines when people talk about cryptocurrencies, but there are literally thousands of other options when it comes to these digital currencies. In fact, cryptos that aren’t Bitcoin are usually considered an “also ran” – what are called “altcoins,” or alternatives to Bitcoin.
While Bitcoin may have been the first major cryptocurrency to hit the market – it debuted in 2009 – many others have become highly popular, even if not quite as large as the original.
Here are the largest cryptocurrencies by the total dollar value of the coins in existence, that is, the market capitalization, or market cap.
11st august, 2021
More about Cryptocurrencies
Individual coin ownership records are stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Despite their name, cryptocurrencies are not considered to be currencies in the traditional sense and while varying treatments have been applied to them, including classification as commodities, securities, as well as currencies, cryptocurrencies are generally viewed as a distinct asset class in practice. Some crypto schemes use validators to maintain the cryptocurrency. In a proof-of-stake model, owners put up their tokens as collateral. In return, they get authority over the token in proportion to the amount they stake. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens or other such reward mechanisms.
Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database. Traditional asset classes like currencies, commodities, and stocks, as well as macroeconomic factors, have modest exposures to cryptocurrency returns.
The first decentralized cryptocurrency was Bitcoin, which first released as open-source software in 2009. As of March 2022 there were more than 9,000 other cryptocurrencies in the marketplace, of which more than 70 had a market capitalization exceeding $1 billion.
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1st june, 2021
Why Are There So Many Different Cryptocurrencies?
Bitcoin might have been conceived as an alternate means of exchange (like money), but using crypto as a currency is not legal in all parts of the world, and in some countries, crypto is restricted, or banned altogether. So, many of the 18,000 types of crypto are not used as money or currency at all.
Developers can build almost anything using powerful blockchain technology. Some crypto coins are used as investment vehicles, stores of value that may be bought, sold, or traded on crypto exchanges.
Many other crypto platforms have purposes that go far beyond acting as an exchange of value. Blockchain, in fact, can offer solutions to longstanding problems in many sectors of the economy besides finance including agriculture, cybersecurity, fine art, gaming, healthcare, insurance, law, medicine, real estate, and supply chain management.
Another reason there are so many types of cryptocurrencies could lay in the fear of missing out (FOMO) factor. Encouraged by crypto’s rapid growth of the past few years, in an effort to get in on any potential profit, entrepreneurs are continuously unleashing huge numbers of new coins to the crypto market.
