The Role of Blockchain in the Launch and Growth of Cryptocurrency

Blockchain technology has been instrumental in the birth of cryptocurrency and make it a viable investment for millions.

cryptocurrency investors benefit from blockchain
Shutterstock Photo License - whiteMocca

Blockchain technology has changed our lives in innumerable ways. One of the most obvious impacts of blockchain technology has been in the cryptocurrency industry.

In fact, blockchain is largely attributed with the birth of bitcoin and other cryptocurrencies. It remains one of the most important forms of technology that is shaping the industry in the years to come.

In 2009, cryptocurrency was an idea that seemed impossible. Today, Bitcoin is worth more than $16,000 per coin. It has changed the way people think about currency and is one of the most talked-about topics in society.

None of this would be possible without the stability and convenience afforded by blockchain. Satoshi Nakamoto, the founder of bitcoin and blockchain, said that blockchain would offer a number of benefits that would make it in a high demand. Investopedia discusses this in one of their articles:

Loading...

“Nakamoto proposed a decentralized approach to transactions, ultimately culminating in the creation of blockchains. In a blockchain, timestamps for a transaction are added to the end of previous timestamps based on proof-of-work, creating a historical record that cannot be changed.”

The evolution of both blockchain and the cryptocurrency industry is a spectacular story — one that we’re going to break down for you with this article.

How Were Blockchain and Cryptocurrency Started?

Before we get into the nuts and bolts of what cryptocurrency is and learn crypto, we should look at where it came from first. In a nutshell, cryptocurrency started with an idea called peer-to-peer electronic cash.

Will Everyone Admit That Blockchain and Cryptocurrency Started in 2009?

No. Some people will say that cryptocurrency started with the creation of Bitcoin, which was launched along with blockchain. People who believe that cryptocurrency started in 2009 often appeal to Satoshi Nakamoto’s writing, where he outlined the function and benefits of blockchains. Some even say that his writing is proof of cryptocurrencies coming from the future. However, Satoshi’s writings only describe the idea of cryptocurrencies. They don’t really talk about how cryptocurrencies work and how they were developed.

Loading...

It’s very important to note that Bitcoin is not the first cryptocurrency. In fact, there are a number of cryptocurrencies that came before it. However, those cryptocurrencies didn’t take off, largely because they didn’t have the authentication benefits that blockchain provided. Arguably, it was blockchain, rather than the concept of digital coins themselves that was the major disruptive technology that came out in 2009.

The most successful crypto-currency out of them all? That would be Ripple. Ripple was created in 2012 and reached a value of over $5,000 per coin by the end of 2014.

What Problem Was Satoshi Trying to Solve with a Blockchain-Based Cryptocurrency?

Satoshi’s idea was directly intended to create a form of digital cash that wasn’t controlled by banks. In the wake of the 2008 financial crisis, Satoshi saw how reckless banks were with people’s money. He wanted to do something about this, and his writings make this very clear. He even goes as far to lay out an argument for why a peer-to-peer electronic cash system known as blockchain would be better than existing systems.

What Is Satoshi’s First Draft Of Bitcoin?

In 2008, Satoshi Nakamoto wrote a paper that laid out a plan for what would later become Bitcoin and the role that blockchain would play in its inception. The paper includes the idea of a decentralized peer-to-peer cash system. The paper introduced the idea of using a distributed network to create a form of digital cash.

Loading...

There are over 1,000 established cryptocurrencies. However, here are some of the more popular ones:

Bitcoin

Bitcoin is the original cryptocurrency. It was created by Satoshi in 2009 and has over 1 million coins in circulation. Bitcoin is notoriously popular and has a market capitalization of over $160 billion. It is by far the most valuable cryptocurrency.

Ethereum

Ethereum was created in 2013 by Vitalik Buterin and has over $30 billion in circulation. Ethereum is known for its smart contracts and is a very popular currency in the world of cryptocurrency.

Litecoin

Litecoin was created by Charlie Lee in 2011 and has over $13 billion in circulation. Litecoin is one of the most popular alt coins on the market and is capable of doing very well in the world of cryptocurrency.

Loading...

Ripple

Ripple was created in February 2012 by Ryan Fugger. It is one of the most popular coins used for cryptocurrency transactions. Ripple has over $85 billion in circulation.

Monero

Monero is a relatively new cryptocurrency that was created in 2014 by Nicolas van Saberhagen. It is a very popular coin with a market cap of over $2.8 billion.

Dash

Dash has been around since 2014 and boasts a market capitalization of $5 billion. It was created by Evan Duffield. Dash is a very popular cryptocurrency and is used for everyday transactions.

How Can You Make Money With Blockchain-Based Cryptocurrency?

If you’d like to make money with cryptocurrency, the easiest way is to buy a coin and wait for it to go up in value. Usually, the best way to invest in cryptocurrency is to buy up as much of a coin as possible. Try to buy as much of the currency that you can while it’s still cheap. Then wait for it to go up in value. If you have a large amount of money, you can even go short on the coin and bet against it.

Loading...

You have to make sure that you are buying legitimate cryptocurrencies over the blockchain. Any digital coins that are not authenticated through the blockchain are scams!

Another one of the most important things you need to remember when you’re investing in cryptocurrency is that it’s very volatile. It’s best to invest money that you don’t need in the short term. The cryptocurrency market can change very quickly and it’s important to remember that. Be careful when you’re investing and make sure to do as much research as possible. If you can’t afford to lose your money, then make sure to take the right precautions.

You should also pay close attention to the industries supporting various cryptocurrencies. You also want to make sure that there are new forms of technology that make certain cryptocurrencies more appealing before investing. For example, blockchain ATMs have made certain cryptocurrencies more convenient, which is likely to increase their value in the future.

Is All Cryptocurrency Created Equally?

No. There are some coins that are far more valuable than others. If you’re investing, it’s best to make sure that you do your research. Make sure that you dive deep into particular coins and their histories. You can even contact developers of coins and ask them questions about their specific currency.

Loading...

The Future of Crypto-Currency

The future of cryptocurrency is a bit uncertain. There was a lot of talk about the future of cryptocurrency after China announced that they were blocking all crypto trading sites. However, the market has started to recover from this and the future of cryptocurrency is looking a lot more positive now. It’s important to remember that cryptocurrencies are still new. We don’t know what the future will hold for them. However, we do know that these digital currencies are here to stay.

A Word of Caution

It’s important to remember that cryptocurrency is a very high-risk investment. Cryptocurrency is still in its infancy and it is important to do your research before making an investment. If you make a lot of cryptocurrency investments, you could end up losing your money. It’s important to keep in mind that cryptocurrencies are extremely volatile and it’s easy to lose your money in this world. If you’re not careful, you could end up losing everything.

In conclusion, cryptocurrency is a new form of currency that is being created on and offline. The system of Bitcoin is highly secure and helps to ensure that cryptocurrencies are transacted without the need for an intermediary. This will drive the process towards a more efficient economy. We need to learn crypto trading so that we can take advantage of the huge rise of these cryptocurrencies.

Loading...

Blockchain Has Made Cryptocurrencies Viable Investments

Blockchain technology has become very important to the evolution of cryptocurrencies. Few cryptocurrencies took off before Satoshi Nakamoto created one that was backed by blockchain in 2008. As a result, they have become very valuable investments for many people all over the world. The value of cryptocurrencies is expected to rise even further in the years to come.

Loading...

Sean is a freelance writer and big data expert. He loves to write on big data, analytics and predictive analytics.