A cryptocurrency refers to a digital asset which is designed to function as an exchange medium through the use of cryptography which is responsible for securing transactions, verification of transferred assets as well as controlling the creation of supplementary units (Vigna, The Age of Cryptocurrency 67). Cryptocurrencies apply a decentralized control system which differs with centralized electronic cash and the banking systems since they are digital, virtual and can be used as an alternative. The decentralized management of cryptocurrency functions through a blockchain whereby all transactions from the public are stored since it functions like a distributed ledger (Narayanan 16).
The creation of bitcoins in 2009
In the recent past, there have been numerous researches which revolve around the cryptocurrency and how it has gained popularity. The creation of bitcoins in 2009 was a major breakthrough since it was the initial decentralized cryptocurrency which has led to the creation of altcoins which are used as alternative coins (Powell 44). The initial crypto allied subject took place in 1992 whereby the main agenda was to discourage spam since the program required emails which had proof thus the sender could easily perform various computational works (Buchanan 62). It was very significant because it established transactions between two folks which in the contemporary were basically identical in the cryptocurrency bazaar as you purchase from a provider thus becoming personal.
The escalation of cryptocurrency
The escalation of cryptocurrency since its establishment has helped in shaping the market in addition to changing the outlook of people with regards to the synthetic currency concept up to the current level since can eventually replace numerous currencies. The capitalization of cryptocurrencies in the market through the use of bitcoins has enabled the creation of approximately 15 billion accounts which represents 89% of the use (Lee 78). Within a span of nine years, the bitcoin prices have gone from cents to dollars which in turn has encouraged the growth which has been consistent and unprompted throughout. The growth of bitcoins has given people faith in cryptocurrencies with more people investing in liteoin and ethereum (Norman, Mastering Bitcoin for Starters 97).
The cryptocurrency system ensures the distribution and achievement of consensus in the current state due to the absence of central authority. The system ensures an overview of the currency units which includes the ownership which enables the users to keep track of their investment in the cryptocurrency field (Vigna, Cryptocurrency 52). The decentralized cryptocurrency is created by the whole system in a collective manner at a rate defined after the creation of a system that is publicly recognized. Moreover, the decentralized cryptocurrency technical system was formulated by Satoshi Nakamoto which ensures that governments and companies cannot create new units (Norman, The Cryptocurrency Investing Bible 33). The system is responsible for defining the fate of new cryptocurrencies unites that are being created which includes the circumstance of their source in addition to determining the ownership of the units. The ownership of the currency units is proved in a cryptographic manner thus allowing transactions to be done soon after the ownership of cryptocurrency unit has been changed (Tu 87).
The future of cryptocurrencies
The future of cryptocurrencies is not certain although in this instance and era of technology if it were to flourish it would be facilitated by the internet as an essential part of the majority people's lives in either spare time or at work. As people already pay for various items using credit cards as well as debit cards, the exploitation of actual money is weakening. Cryptocurrencies have gradually been effecting their way into various societies with the foremost narration of any efforts of suck dating back in 1992.
Work Cited
Buchanan, William J. Cryptocurrency and Blockchains. Stylus Publishing, 2018.
Lee, David. Handbook of Blockchain, Digital Finance, and Inclusion. Volume 1, Volume 1,. Elsevier/Academic Press, 2018.
Narayanan, Arvind. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press, 2016.
Norman, Alan T. Mastering Bitcoin for Starters: Bitcoin and Cryptocurrency Technologies, Mining, Investing and Trading. Createspace Independent Publishing, 2017.
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Powell, Asher. Cool Careers without College for People Who Love Coding. Rosen YA, 2018.
Tu, Anthony. Cryptocurrency: 5 Expert Secrets for Beginners : Investing into Bitcoin, Ethereum and Litecoin. Won Publications, 2017.
Vigna, Paul. Cryptocurrency: The Future of Money. Vintage, 2016.
---. The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order. Picador/St. Martin’s Press, 2016.
