Cryptocurrencies have been popping up in different countries and the domain has attracted a lot of attention since the inception of bitcoins in 2009. This can be due to the involvement of technology giants like Facebook starting their own cryptocurrencies like Libra. While governments continue to harbor apprehension regarding the lack of regulations, the decentralized model of cryptocurrencies has many followers.
If you are unclear about cryptocurrencies and would like to know more, this blog is a must-read. Apart from explaining the concept of cryptocurrencies, it also lists some interesting facts that everyone should know about.
What are cryptocurrencies?
Cryptocurrency is an internet-based financial medium of exchange that involves the use of crypto-graphical functions to conduct transactions. These currencies leverage block-chain technology to become decentralized and transparent. The most important feature of cryptocurrency is that it cannot be controlled by a centralized authority, thus reducing government control and interference on the financial currency.
Another important feature of cryptocurrencies are their immaculate systems of records. Every transaction that happens with cryptocurrencies is recorded and stored by block-chain which acts as a ledger. This can reduce the wastage of time in sourcing old transactions.
Surprising facts about cryptocurrencies
The world of cryptocurrencies is relatively new and there is so much to learn and discover. Here are some fascinating facts about cryptocurrencies that you may not have heard before.
- You can lose your wallet: To deal with any cryptocurrency like Bitcoins, you need to create a digital wallet that provides you with a private key to gain access to the wallet. As long as you remember the key, you can access your wallet to make transactions. But, losing the private key would leave you incapable of accessing your wallet. Since the system is decentralized, there are no authorities to approach for help, unlike conventional banking systems.
- The inventor of the first cryptocurrency is unknown: While we get to know new things about blockchain technology and cryptocurrencies almost every day, the identity of the creator of the first cryptocurrency is still unknown. The proof of the first cryptocurrency (Bitcoins) was in a white paper published by an anonymous group named Satoshi Nakamoto. A popular theory revolves around the name being an acronym for leading Asian tech giants—Samsung, Toshiba, Nakamichi and Motorola.
- China is one of the biggest miners of cryptocurrency: The block-chain acts as a universal ledger, storing records of every cryptocurrency transaction. Minute analysis of block-chain transactions have revealed that China is one of the biggest cryptocurrency miners in the world. Cryptocurrency is a lucrative business in the country and it enjoys considerable control over the global mining network.
Irrespective of the debate on the pros and cons of cryptocurrencies, it is beyond doubt that they have changed the face of modern financial frameworks and started a new culture of innovation. Hence, it can be a great idea to be well-versed with cryptocurrencies, especially if you wish to work in the financial domain. Earn a certificate in the subject with cryptocurrency course today to understand the intricacies of the system.