in

Top Cryptocurrency Facts You Should Know

Here is a list of Top Cryptocurrency Facts You Should Know based on users votes

bitcoin cryptocurrency digital ethereum dollar gold investment getty large
bitcoin cryptocurrency digital ethereum dollar gold investment getty large

#1 Cryptocurrencies have no fundamental backing

bitcoin cryptocurrency digital ethereum dollar gold investment getty large

Unlike the U.S. dollars in your wallet, or some other currency all over the world, digital currencies aren't backed by a central bank or even a government.

There is also no tangible fundamental factors with which to help derive an appropriate valuation. Whereas you can go through the earnings history of a publicly trading stock to estimate its worth, or the economic performance of a nation regarding GDP growth to value a currency such as the dollar, digital currencies haven't any direct fundamental ties. Top Cryptocurrency Facts You Should Know. This makes valuing cryptocurrencies in a traditional sense especially difficult, or even impossible.

by

4 points
Upvote Downvote

#2 Blockchain is where the real value lies

bitcoin ethereum cryptocurrency mining graphic card hard drive getty large

Inspite of the increased exposure of trading virtual currencies, it's actually what underlies cryptocurrencies that would be particularly valuable.

Blockchain technology may be the infrastructure that cryptocurrencies like bitcoin are founded on. It's a digital and decentralized ledger that records payment and transfer transactions in a safe and efficient manner. It is also the big reasons why big businesses are very excited.

by

4 points
Upvote Downvote

#3 There are more than 1,300 cryptocurrencies (but bitcoin is king

blockchain bitcoin ethereum cryptocurrency getty large

If you've been following a appreciation of virtual currencies, you've probably heard an awful lot about bitcoin -- and with good reason. It absolutely was the initial tradable cryptocurrency that was brought to market, and it currently comprises 54% of the aggregate $589 billion market cap of most cryptocurrencies. 

However, it's not even close to alone. There are more than 1,300 other virtual currencies that investors can buy, that over two dozen have a market cap that's in excess of $1 billion.

by

4 points
Upvote Downvote

#4 Blockchain technology is being tested by a number of brand-name

computer code blockchain cryptocurrency bitcoin ethereum getty large

Despite these disadvantages, few would argue that blockchain isn't a potentially game-changing technology. Numerous big businesses have partnered with cryptocurrency-backed blockchains in small-scale and pilot projects.

As an example, 200 organizations have joined the Enterprise Ethereum Alliance to test out a version of Ethereum's blockchain in small-scale projects. Top Cryptocurrency Facts You Should Know. Some of the companies involved include Microsoft, JPMorgan Chase (NYSE:JPM), and MasterCard.Cryptocurrencies Ripple and IOTA have announced blockchain projects with brand-name companies recently as well. 

by

3 points
Upvote Downvote

#5 Miners” play a critical role

hacker bitcoin cryptocurrency money finances laptop illegal getty large

However, cryptocurrency transactions need to be verified, and the blockchain regularly enlarged, to account for new transactions and payments. This job falls to a small grouping of folks called cryptocurrency miners.

Crypto-mining involves using high-powered computers to solve complex mathematical equations on a competitive basis to be able to verify and log transactions. Being the first to ever do so frequently entitles the miner to a reward, which can be given in the shape of cryptocurrency coins and/or transaction fees of a block.  Although the hardware and electricity costs may be enormous, mining can be extremely rewarding. The graphics-card hardware needs of miners is a huge big reason why NVIDIA and Advanced Micro Devices have seen a double-digit percentage surge in sales recently.

by

3 points
Upvote Downvote

#6 Digital currencies are exceptionally volatile

investor looking at financials magnifying glass getty large

Probably first thing you'll notice if you've been following cryptocurrencies is that they're exceptionally volatile. This derives from the truth that virtual currency trading occurs on various cryptocurrency exchanges rather than a central exchange, leading to increased volatility.

Since the season began, the aggregate market cap of all cryptocurrencies combined has increased by significantly more than 3,200% by Dec. 18. Top Cryptocurrency Facts You Should Know. Nonetheless, bitcoin, the world's hottest cryptocurrency, has undergone four corrections of at the very least 20% within the last six months. Simply speaking, cryptocurrencies aren't for the faint of heart.

by

2 points
Upvote Downvote

#7 Blockchain has numerous other advantages

stock market dividend risk correction income getty large

But there's more to like about blockchain technology than just its decentralization. Because miners are working 24 hours each day and 7 days weekly to verify transactions, they could be settled much quicker than through traditional banking, which sticks to normalcy businesses hours, closes for the weekends, and often holds funds for a few days. Plus, without a middleman, transaction costs can in fact drop with blockchain.

Additionally, blockchain offers user control and transparency. Rather than letting a third-party control the future of a cryptocurrencies'blockchain, members of a cryptocurrencies'community are who call the shots with regard to future development.

by

2 points
Upvote Downvote

#8 The barrier to entry is relatively low

stock traders in front of computers on phone getty large

It's also worth pointing out that while blockchain technology could change the landscape for the financial services industry, almost no barrier to entry exists. If you have time, money, and a team that understands how exactly to code, you are able to potentially write blockchain and bring a cryptocurrency to market.

How worrisome is this for kingpins like bitcoin and Ethereum? In July, there were fewer than 1,000 cryptocurrencies on the market. Top Cryptocurrency Facts You Should Know. By Dec. 18, there were 1,364. Anywhere from 50 to 100 new virtual currencies, likely complimented by blockchain technology, are now being introduced each and every month. All these is another potential threat to existing virtual currencies and their blockchains.

by

2 points
Upvote Downvote

#9 But blockchain isn’t perfect, either

ethereum bitcoin cryptocurrency digital blockchain getty large

However, blockchain does have its drawbacks. As an example, it is a nascent technology that's still being developed, meaning it's bound hitting bumps in the road. These bumps can include transaction speed and verification slowdowns, which are critical advantages that enterprises is going to be searching for when they switch away from the traditional databases currently in use.

There's also worries about integrating this new technology to the fold. While it could permit quicker cross-border transactions and added security for the financial services industry, there's no guarantee of an instant transition to blockchain. 

by

1 point
Upvote Downvote

#10 Decentralization is key

money transfer smartphone global getty large

What makes blockchain technology so enticing is the fact that it's decentralized. Quite simply, there is no central hub where these details is stored, and therefore no major data center where cybercriminals can attack and gain control of a specific digital currency.

Instead, servers and hard disk drives across the world contain bits and pieces of details about a specific blockchain network, but not enough to cripple it should the information inside belong to the wrong hands. This makes blockchain a really secure technology, which is attracting big businesses.

by

1 point
Upvote Downvote

Add your submission

Image Video Audio Text Embed

This field is required

Drop Image Here

or

You don't have javascript enabled. Media upload is not possible.

Get image from URL

Maximum upload file size: 8 MB.

Processing...

This field is required

Drop Video Here

or

You don't have javascript enabled. Media upload is not possible.

e.g.: https://www.youtube.com/watch?v=WwoKkq685Hk

Add

Supported Services:

Maximum upload file size: 10 MB.

Processing...

This field is required

Drop Audio Here

or

You don't have javascript enabled. Media upload is not possible.

e.g.: https://soundcloud.com/community/fellowship-wrapup

Add

Supported Services:

Maximum upload file size: 5 MB.

Processing...

This field is required

e.g.: https://www.youtube.com/watch?v=WwoKkq685Hk

Supported Services:

Processing...

This post was created with our nice and easy submission form. Create your post!

What do you think?

1001 points
Upvote Downvote

Comments

Leave a Reply

Your email address will not be published.

Loading…

0

Comments

0 comments

Adrian Lamo

Top most infamous hackers of all time

100616 NBA Charles Barkley.vadapt.767.high .36

Top greatest players in NBA history