Today cryptocurrency is become a global phenomenon known by most people but understood by few. In 2018 you’ll have a hard time to find a major bank accounting firm, software company, and a government. That hasn’t research cryptocurrency or started a block chain project. Beyond the noise, in the press release, many people often fail to understand the basic concept. So let’s walk through the whole story.
What are cryptocurrencies?
A cryptocurrency broadly defined as virtual or digital money which takes the form of tokens or coins. It refers to complicated cryptography. Which allows for a particular different token to be generated stored and transacted securely, typically and anonymously. These cryptocurrencies build in the form of specific codes.
But here we need to elaborate the term Bitcoin because this is an essential and most wanted cryptocurrency.
It is a digital and decentralized currency much like the electronic currency we use today. But it is also the payment network that facilitates the transfer of this new digital currency from one person to another. Bitcoin was first Invented in 2009 by Satoshi Nakamoto. To understand it more we have a detailed description of the term Bitcoin. He made it as a peer to peer electronic cash system to realize digital cash. You need a payment network with accounts, balances, and transactions. One major problem every payment network has to solve is to prevent double sending.
TRACE MAYER ( Monetary Scientist and Blockchain Expert) claims :
Bitcoin is a new internet protocol that enables the transmission value over communication channels. You can think of it like being of a gold coin usually send in Email. You can send any amount of money to anywhere all over the world any time. It can be ceased, can be frozen basically very useful technology.
Most of the people in the cryptocurrency point to scheduled Bitcoin-related events as a catalyst for higher BTC prices. Any increases in demand for Bitcoin should result in even more extreme moves to the upside.
Several market observers emphasized technical analysis, using it to explain bitcoin’s recent fluctuations.
Joshua Frank, co-founder of cryptocurrency analytics platform illustrated :
After seeing a massive run-up in long-term sentiment on Bitcoin from December 2018 to late August 2019, we have begun to see a significant drop off in long-term market sentiment towards BTC.
The supply will continue to increase in this fashion until there is 21 million Bitcoin in existence. It is an anti-inflationary function that Satoshi Nakamoto (the creator of Bitcoin) put in place to make sure the value of Bitcoin was never pushed down by the supply increasing too fast.