What is Cryptocurrency?

A cryptocurrency is defined as a collection of binary data that has been created to function as a medium of exchange. It is not a fiat currency. It is a medium of exchange that is virtual or digital, encrypted, and, decentralized. Blockchain is the core technology behind cryptocurrency. Cryptocurrency uses encryption to verify transactions. Its principal aim is to

• Decentralizing power thus reducing corruption
• Reducing excess money-minting
• Enabling people to be in charge of their own money
• No need to hire any broker or go through a third party vendor like Bank
• Not controlled or monitored by any government

Different cryptocurrencies available online:

Though to the common man, Bitcoin is synonymous with the term cryptocurrency, there are different cryptocurrencies in the market besides Bitcoin that are extensively used in crypto-trading. More than 10,000 cryptocurrencies, also collectively known as altcoins, have been introduced in the crypto market over the years. Most of them haven’t been able to make their presence felt in the market in terms of following or trading volume. But there are some that have succeeded in having their own investors. Some noteworthy mentions are:

• Ethereum (ETH)
• Litecoin (LTC)
• Binance Coin (BNB)
• Tether (USDT)
• Bitcoin Cash (BCH)
• Monero (XMR)
• Solana (SOL)
• Cardano (ADA)
• USD Coin (USDC)
• Stellar (XLM)
• Polkadot (DOT)
• Terra (LUNA)
• Dogecoin (DOGE)
• Avalanche (AVAX)

Ethereum, launched in 2015, is the second largest digital currency in circulation. But according to the latest reports, its market capitalization is less than half of that of the current strength of Bitcoin. Much before Ethereum, Litecoin (LTC) was introduced in 2011. It was among the early cryptocurrencies that were launched in the hope that it would emulate the unprecedented success that Bitcoin enjoyed. Currently it is ranked as the 17^th largest cryptocurrency in the world.

Emergence of Bitcoin and its Continuing Dominance in the Crypto-Market

On the 3rd of January 2009, Bitcoins were introduced to the world by Satoshi Nakamoto. Bitcoin remains the largest cryptocurrency, by market capitalization. In the entire financial history, there hasn’t been such rapid growth in such a short period as seen in the case of this cryptocurrency. Bitcoin offers security, confidentiality, and flexibility in monetary transactions.

Bitcoin is considered as digital gold. Since its public launch, bitcoin value has risen dramatically. It once sold for under $150 per coin. As of October 26, 2021, the value of one Bitcoin is more than $ 62,000. Since the supply of Bitcoins is capped at 21 million coins, it is believed that its price will only rise with time.

How it has continued to stay popular among crypto users?

• Minimal transaction fees: For any traditional monetary transaction where a financial institution is involved, the charges are generally high. People prefer sending money overseas or conducting business online using bitcoins for its low transaction fees.
• No government involvement: In case of political unrest, the national currency gets affected. People protect their wealth by converting it into Bitcoins which is unaffected by government policies. Even, Bitcoin cannot get affected by financial inflation of any state or country, because it is not issued or controlled by any government.
• Overall security of the user: Crypto-user confidentiality is maintained in Bitcoin trading. Further security is provided by a private key to each digital wallet.
• Bitcoins are accessible to everyone: Due to the emergence of many reliable crypto exchange platforms and apps like the british-bitcoinprofit.org app, it has become easier for people to invest in Bitcoins today.
• Perceived as future currency: Many believe that bitcoins will gradually displace fiat money. This may be a myth but it has the potency to overcome the popularity of fiat currency.

Conclusion

In the coming days and years, many more cryptocurrencies with enhanced features may be introduced in the market. But the acceptability that Bitcoin enjoys seems to be hard to beat or even emulate. In November 2021, there were more than 75 million wallet users. Bitcoin’s dominance in the cryptocurrency world is here to stay and so is its popularity among crypto-users. It will always be regarded as a de facto standard for cryptocurrencies.

Josh Atkinson

Problem solver. Incurable bacon specialist. Falls down a lot. Coffee maven. Communicator.