:CRYPTOCURRENCY

A cryptocurrency is a digital asset that can circulate without the centralized authority of
a bank or government.  To date, there are more than 19,000 cryptocurrency projects out
.there that represent the entire $1.3 trillion crypto market

A cryptocurrency is an encrypted data string that denotes a unit of currency. It is monitored and organized
by a peer-to-peer network called a block chain, which also serves as a secure ledger of transactions, e.g.,
buying, selling, and transferring. Unlike physical money, cryptocurrencies are decentralized, which means
they are not issued by governments or other financial institutions. 

Cryptocurrencies are created (and secured) through cryptographic algorithms that are maintained and
confirmed in a process called mining, where a network of computers or specialized hardware such as
application-specific integrated circuits (ASICs) process and validate the transactions. The process
incentivizes the miners who run the network with the cryptocurrency.

Bitcoin, Ether, Litecoin, and Monero are popular cryptocurrencies. 

 Bitcoin (BTC)
 Market cap: $565 billion
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As
with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions
distributed across a network of thousands of computers. Because additions to the
distributed ledgers must be verified by solving a cryptographic puzzle, a process called
proof of work, Bitcoin is kept secure and safe from fraudsters.
Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you
could buy one Bitcoin for about $500. As of June 1, 2022, a single Bitcoin’s price was
around $29,700. That’s growth of more than 5,800%.

Not only is Bitcoin (BTC) the first cryptocurrency, but it’s also the best known of the
more than 19,000 cryptocurrencies in existence today. Financial media eagerly covers
each new dramatic high and stomach-churning decline, making Bitcoin an inescapable
part of the landscape.

While the wild volatility might produce great headlines, it hardly makes Bitcoin the best
choice for novice investors or people looking for a stable store of value. Understanding
the ins and outs can be tricky—let’s take a closer look at how Bitcoin works.
Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly,
without an intermediary like a bank. Bitcoin’s creator, Satoshi Nakamoto, originally
described the need for “an electronic payment system based on cryptographic proof
instead of trust.”

Every Bitcoin transaction that’s ever been made exists on a public ledger accessible to
everyone, making transactions hard to reverse and difficult to fake. That’s by design:
Core to their decentralized nature, Bitcoins aren’t backed by the government or any
issuing institution, and there’s nothing to guarantee their value besides the proof baked
in the heart of the system.

“The reason why it’s worth money is simply that we, as people, decided it has value—
same as gold,” says Anton Mozgovoy, co-founder & CEO of digital financial service
company Holyheld.

Since its public launch in 2009, Bitcoin has risen dramatically in value. Although it
once sold for under $150 per coin, as of  June 8, 1 BTC equals around $30,200. Because
its supply is limited to 21 million coins, many expect its price to only keep rising as time
goes on, especially as more large institutional investors begin treating it as a sort of
digital gold to hedge against market volatility and inflation. Currently, there are more
than 19 million coins in circulation.

Bitcoin is built on a distributed digital record called a blockchain. As the name implies,
blockchain is a linked body of data, made up of units called blocks containing
information about each transaction, including date and time, total value, buyer and
seller, and a unique identifying code for each exchange. Entries are strung together in
chronological order, creating a digital chain of blocks.
“Once a block is added to the blockchain, it becomes accessible to anyone who wishes to
view it, acting as a public ledger of cryptocurrency transactions,” says Stacey Harris,
consultant for Pelicoin, a network of cryptocurrency ATMs.
Blockchain is decentralized, which means it’s not controlled by any one organization.
“It’s like a Google Doc that anyone can work on,” says Buchi Okoro, CEO and co-
founder of African cryptocurrency exchange Quidax. “Nobody owns it, but anyone who
has a link can contribute to it. And as different people update it, your copy also gets
updated.”
While the idea that anyone can edit the blockchain might sound risky, it’s actually what
makes Bitcoin trustworthy and secure. For a transaction block to be added to the
Bitcoin blockchain, it must be verified by the majority of all Bitcoin holders, and the
unique codes used to recognize users’ wallets and transactions must conform to the
right encryption pattern.

These codes are long, random numbers, making them incredibly difficult to produce
fraudulently. The level of statistical randomness in blockchain verification codes, which
are needed for every transaction, greatly reduces the risk anyone can make fraudulent
Bitcoin transactions.