Introducing Cryptocurrency: The greatest technological breakthrough after Internet
I am writing after a long time as I was doing extensive research on the Cryptocurrencies. It has been called one of the greatest technological breakthroughs since the Internet. It also has been called “a black hole” into which a consumer’s money could just disappear. Technology is changing at a very fast pace, startups should keep up with that pace as technology helps in bringing positive disruption. Cryprocurrency is the financial innovation that is brought as a result of developments in the technology. Cryptocurrency is a medium of exchange created and stored electronically, and using encryption techniques to control the creation of monetary units and to verify the transfer of funds. Bitcoin, perhaps the most widely known example, has been a media sensation and an investment fad. But so far this new way of storing and spending value has inspired So, What is cryptocurrency? A cryptocurrency is a medium of exchange such as the US dollar. Bitcoin, the first cryptocurrency, appeared in January 2009 and was the creation of a computer programmer using the pseudonym Satoshi Nakamoto. Like the US dollar, cryptocurrency has no intrinsic value in that it is not redeemable for another commodity, such as gold. Unlike the US dollar, however, cryptocurrency has no physical form, is not legal tender, and is not currently backed by any government or legal entity. In addition, its supply is not determined by a central bank and the network is completely decentralized, with all transactions performed by the users of the system. The term cryptocurrency is used because the technology is based on public-key cryptography, meaning that the communication is secure from third parties. This is a well-known technology used in both payments and communication systems. Is it important for Startups? As Cryptocurrency is a new system of financial transaction, it is crucial for startups. Many startups have adopted this new system for receiving payments and other financial transactions. There are 948 startups listed in Angel List under the cryptocyrrency segment with average valuation of US $4.6 million. Also, Angel List alone lists 566 investors in cryptocurrency startups. In my following posts, I will write about the bitcoin, altcoins & blockchain technology. I will also explain about how to mine cryptocurrencies along with how to earn from trading.