Introduction
A crypto currency is a digital currency designed to work as a medium of exchange through which value is exchanged on a decentralized, peer-to-peer, open online network. The word "crypto" comes from the Greek words "kryptos" and "logos", which means "writing". Unlike traditional money, where cash is used by businesses, exchanges and other parties are held in escrow with banks, crypto currencies are distributed anonymously without going through intermediaries and so do not involve a single entity like banks or governments in transactions.
The first known use of the term crypto currency occurred in 1973 when Harvard Professor Charles Lempel published what would become known as Bit coin: An academic paper describing Bit coin as an electronic payment system. At the time, this paper was regarded as the foundational piece for a field of study called cryptography; by 1976, a number of cryptography papers had been published about it. In the 2000s, there have also emerged several large ICOs in which bit coin tokens were issued. In 2020, more than 100 million people around the world issued or held bit coin.
Types Of Crypto Currency
Bit coin, Lite coin, Ripple, Doge coin, and Monero are examples of different types of crypto currency. Not all crypto currencies are created equal. Some crypto currencies are often referred to and traded by their intended uses, and others may be considered for speculative or investment purposes. Some bit coins, tiktok accounts, Bit coin Cash and altcoins can be earned through mining or staking on platforms like Steam and the Free Bit coin Games website.
History
Bit coin coins were started off in January 2009 by two unknown developers, Nakamoto Nakamoto and Hal Finney, at San Francisco's University of California. It was released as a public block chain in December 2013. Since then, there have been over one hundred thousand forks and roughly 3.6 million Bit coins has been produced. According to Forbes, Bit coin has been instrumental in facilitating the fastest transfer of funds since 1971. This led to bit coin adoption being seen as an alternative money solution with applications in various fields and markets including crowd funding, trading and payments. Bit coin became widely accepted at global scale in 2017 after its price became too high for mainstream investors to consider investing as well as due the ease of access to technology enabled and facilitated the use of crypto currency such as mobile wallets, decentralized apps, and virtual currencies. Most companies are now adopting bit coin. For example, many major corporations have adopted crypto currencies because they are less expensive, quick, and easy to use compared to legacy methods.
The first person to propose bit coin as a viable form of money was Ross Ulbricht who stated his interest in making bit coin based money. In 2002, William Pierce, founder of Ponzi scheme company Pyramid Scheme, invented the term "crypto". In 2006 Bit coin was listed on the NEM token standard (notably its name). EOS, BSC, Polkadot, R3 Corda, Shiba are some of the names often used by block chain projects.
Bit Coin Considered Scam In History Of Finance
Bit coin is also considered to be "the greatest scam in history of finance." Its origins can be traced back to the days of the Silk Road. Bit coin transactions are only allowed for users from certain countries or regions, regardless of how much cash you need. As of October 2018 Bit coin had the most market cap among all crypto currencies. The biggest increase happened in December 2017. When Bit coin had dropped to $5,000, users were able to buy even more, but again the prices rose, reaching an all-time high of $20,000. After September 2017, Bit coin fell below its earlier peak ($7,000). By April 2018, BTC went into another slump after falling to under $5,000 again and by July 2019, the coin lost almost half of its value to reach $6,000 as of March 2020.
Name & Popularity Of Bit Coin
Bit coin was given the nickname Satoshi Nakamoto after someone called on 4chan, who made a joke out of Mr. Nakamoto's name.
Bit coin has gained popularity at the beginning of 2018 as a new financial tool for both retail and institutional traders and miners, especially during the GameStop controversy in late November. However, the same day saw a mass selloff of these trading shares, followed by dramatic losses in early March, bringing the share price of GameStop down more than 50% in less than 24 hours. On June 9, however, investors began to demand for bit coin as a safe haven for them due to the volatility of the stock exchange. Bit coin, while not technically legal tender, did start attracting attention as a potential investment asset. With this, the price of bit coin surged to highs of $20,000 in just ten days before a correction was triggered. Despite the sharp fluctuations in the market and the hype that accompanies, bit coin remains highly unverified among users and experts.
Bit Coin Mining
Bit coin mining refers to the process of verifying transactions and adding new blocks as needed to build up the crypto currency. To mine bit coin, the developer must know a private key and complete the signup process. There are three main forms of mining available: Proof of Work (PoW), Proof of Stake (PoS). PoW can take place by using special hardware to verify a transaction. Also, if a user wants to earn, he/she needs to deposit fiat currency. Bit coin miners receive rewards from Proof Of Working as well as Proof of Stake. Because Bit coin is decentralized, no single individual controls the miner pool. Thus, each participant is free to join a node, and will gain a set of benefits if the transaction is verified and added. Miners generate their own block through hashing algorithms to protect the integrity of the system.
Bit coin mining is similar to the proof of stake and proof of stake and proof of value systems. Other similarities include the reward structure. Like Proof of Value, Bit coin also offers multiple forms of reward for the creator of blocks and verification of transactions.
Proof Of Stake
Proof of Stake (PoS) is the basis of Bit coin mining. Similar to Proof of Work, it does require extra equipment to help verify transactions. While Proof of Stake utilizes computing power, Proof of Stake consumes electricity. Mining nodes can choose between PoS-based consensus methods. They can also select a type of block chain consensus. Ethereum is considered the default choice for a majority of networks and individuals, while Zcash is popular among institutions. One advantage of Proof of Stake is that when validators get involved in a dispute, it becomes difficult in fact to ignore. Another advantage are that anyone can run a node, and nobody will know their identity, whether legitimate or not. In addition, anyone can claim transaction fees from the existing block chain. Although the rules are complex, it is easy to understand and implement, as well as make changes. Anyone can install the software required. Once successfully installed, the miner can begin to collect the block rewards. Bit coin is currently considering the possibility of introducing a minimum amount of coins required to participate in the PoS mechanism, although that would limit how much a user can earn per block. In the future, Bit coin could introduce more regulations and verification to ensure it becomes an environment of trust.
Proof Of Worth
Proof of Worth (PoW) is an extension of the Proof of Valor protocol introduced in February 2017 after Mt. Gox hacked around 850,000 BTC. Since 2014, the community has been fighting for total consistency of Bit coin governance. People around the globe started to believe that the entire operation of Bit coin could be centralized. So, on May 18, 2018, they decided to launch the Bit coin Improvement Project (BIP). They proposed creating a third-party entity with no executive compensation to oversee Bit coin transactions. Before issuing BIP, BIP announced another proposal, the “Payment Protocol”, which would replace Bit coin transactions by taking a fee in order to compensate holders. However, even this proposal was rejected. Following news of Bit coin being taken offline completely, Mark Cuban announced the development of Bit coin Gold. From that moment on Bit coin Gold took over as the official Bit coin project.
Bit Coin Gold
Bit coin Gold and the rest of the ecosystem were merged, and the transition is underway. The Bit coin Gold team released White Paper 1.0 of Block chain Gold for Q3 2019. Bit coin Gold plans to expand their vision to create scalable, secure, enterprise-grade solutions to address the vast gap left by Bit coin. If successful, Black Gold will be part of Bit coin Gold's vision. Furthermore, Amazon Web Services (AWS) acquired Bit Go, which created an initial testnet for BTC on AWS In 2018, Google purchased Antminer, allowing AntMine to provide GPU cloud mining service. As of September 2020, Digital Ocean bought Tron, Inc., owner of the Open Chain smart contract platform. In December 2020, Microsoft bought Neura, further expanding Microsoft's presence in the block chain space.