A cryptocurrency (crypto) is a digital or virtual currency that’s intangible and you can’t touch or hold it in your hands. It’s only visible on your computer screen and can be transacted digitally. It’s secured by strong cryptography, and the records of ownership are stored in an online ledger.
Cryptocurrencies use a decentralized controlling system, i.e. they work through distributed ledger technology and don’t have any central bank. A blockchain provides the service of a database for transactions.
Many cryptocurrencies are available in the market, and people are trading in these digital assets. Prices of cryptocurrencies fluctuate a lot, and a very rapid change can be seen within a few hours or days.
Bitcoin and AltCoins – Summary
Bitcoin is the most popular and commonly traded cryptocurrency in the world; launched by Satoshi Nakamoto in 2009, it was first traded in 2010 and is now accepted by many businesses besides traditional currencies.
AltCoins is the name given to the crypto coins other than Bitcoin. It’s short for “alternative coins”, which means alternatives to Bitcoin. Almost 900 of them are available in the crypto market. Some of the well-known are Ethereum, Litecoin, Ripple, and Cardano.
As Bitcoin is the first among all the cryptocurrencies, it’s traded and relied upon the most. Evidently, its price is high as well, with other coins yet to overcome, or even reach it.
If you want Bitcoin or any AltCoin, there are two ways to get it, you can mine it or purchase it. Mining includes adding transaction records to the blockchain without buying them. This process uses your graphic card and electricity for mining. According to some sources, the last Bitcoin will be mined in the year 2140. Buying cryptocurrency is a simple process, you just have to download a crypto wallet to store your crypto there, then you just have to pay via your credit card, debit card, or bank account on an exchange and send it to your wallet.
History of Bitcoin’s Price
When launched, Bitcoin’s price was too low. It was worth almost $0.01 when the first transaction was made by Laszlo Hanyecz. Only two pizzas were bought by paying BTC 10000. Gradually, the price started increasing and in 2011, it’s worth rose to a value of $1. In October 2013, it was valued at $150 and only within a month’s span, its value rose to $1242 on 29 November 2013. In 2014, Bitcoin’s price saw a downfall and reached $340; in that year its prices were around $340 – $530. In the following years, its prices increased again and in May 2017, the price went up to $2000. In September 2017, Bitcoin’s price touched $5000 for the first time. It was an amazing year in the history of cryptocurrency as the prices kept increasing and broke all the previous records; at the end of that year, the price of Bitcoin almost touched $20000, making its investors multi-millionaires and multi-billionaires.
After 2017, Bitcoin again started losing its value in 2018 and 2019. In 2020, because of the pandemic, the prices went comparatively too low at almost around $5000. At the end of 2020, the prices got stable again and arrived at around $20000. At the start of 2021, a rapid increase has been seen in Bitcoin’s price as on 3rd January, it touched $34000.
Is it still beneficial to buy cryptocurrency?
The answer is “YES”, purchasing cryptocurrency is still beneficial for the investors as according to some sources Bitcoin’s price will reach up to $100000 in 2021. Some people also predicted that its price will touch almost $500000 around 2030.
Also, the prices of AltCoins aren’t coming slow as Ethereum has reached from around $150 – $1000 and Litecoin has reached from $30 – $180 within the last few months. The values of other AltCoins are also increasing and breaking their previous high records.
Despite everything, any person who wants to invest in crypto must know about the risks that are involved in it. Cryptocurrencies are volatile and their prices keep fluctuating rapidly, so many ups and downs can be seen within your journey that you should know before investing in it. Also, previously cryptocurrencies have been used in illegal activities, therefore it’s criticized for this too.
In Pakistan, trading of cryptocurrency is banned, and it’s illegal to invest in it. A warning was issued because of its volatility and the risk of it being used for laundering money. Also, there are some religious issues in investing in digital currency as according to some sources, it’s prohibited in Islam to invest in such a thing that’s intangible and doesn’t have any physical existence.
The world is going digital even the currency has become digital. Above are some facts about cryptocurrency. Hope you liked the article and will appreciate the information.