Cryptocurrency: A cryptocurrency is a currency that does not depend on banks or the government. Cryptocurrencies are created and secured by cryptographic techniques. Many cryptocurrencies are based on the technology of blockchain and are decentralized networks.

Blockchain technology is a distributed ledger implemented by a diverse computer network. A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

Cryptocurrency History

In 1983, David Chaum was an American cryptographer. He conceived unidentified electronic cryptographic money known as cash. Then he applied it to Digicash in 1995. It was an initial form of electronic payment. The Digicash system needed the user's software to draw out notes from the bank and designate particular keys before they could be sent to a recipient.

The first decentralized cryptographic currency “bitcoin” was created by an unrevealed creator named Satoshi Nakamoto in 2009. The proof of work scheme, used a harsh SHA-256, the function of cryptography. Another Litecoin was published in 2011, which makes use of script instead of SHA-256 as a hash function.

In 2021, bitcoin is accepted by the only country El Salvador, and given the position as a legal tender. In September 2021, China banned the cryptocurrency and declared all the transactions are illegal.

Advantages of cryptocurrency

Cryptocurrency is a digital asset with no monetary authority and the interference of a third party. It is an easier way to transfer funds between parties.

It is a self-governed and managed currency, its transactions are stored by miners on their hardware

It is a secure and private system because the blockchain system has many puzzles that cannot be easy to decode. Transfers are protected by public and private keys.

It is a faster transaction system as compared to other traditional platforms like banks

Investment in cryptocurrencies can increase such profits as bitcoin in the last 10 years reached 2 trillion dollars. But in May 2022, bitcoin's value was $550 billion in the cryptocurrency market.

Disadvantages of Cryptocurrency

Cryptocurrency is also linked with criminals. They progressively use this currency for undesirable tasks involving money laundering and illegal transactions.

The mining system is high-energy-consuming. Because of high energy costs and the unpredictable nature of mining, the industry is now dominated by enormous companies with sales in billions of dollars.

Cryptocurrencies blockchain is an extremely secure system, but sometimes the wallet and exchanges may be hacked and millions of dollars have been stolen.

Some economists think that cryptocurrencies have a short lifetime. For example, when we talk, bitcoin's value has dropped to the value of $7,575 these months after reaching its peak of $17,738 in 2017.

Important cryptocurrencies other than bitcoin

1.Ethereum

Ethereum was established in 2015 and is the 2nd largest digital currency.

Ethereum is another form of cryptocurrency after bitcoin, which is a decentralized software system that allows smart contracts and apps to rise and move with no interruption, control, fraud, or intervention from the third party. Anyone in this world can easily access financial products through Ethereum. By the end of March 2022, the trading of Ethereum was $2,565 per ether lower than half of the Bitcoin currency.

2. Solana (SOL)

Solana is a faster transaction system than Ethereum. It can perform many transactions per second. It is a blockchain system built to support decentralized Apps, founded in 2017. Ethereum and Solana both can develop smart contracts that are necessary for running.

3. Cardano (ADA)

Cardano has the 8th largest market capitalization at $26.9 billion in March 2022 and trades with a value of around $0.80 per ADA. Cardano intends to become the global financial operating system by creating Defi products equivalent to Ethereum's and providing solutions for voter fraud, contract tracing, and chain interoperability.

4. Bitcoin Cash

It is the most successful hard fork related to blockchain technology of the original Bitcoin, among others. In the world of cryptocurrency, a split occurs due to disagreements and debates between miners and developers. Bitcoin Cash started in 2017. In March 2022, the bitcoin chain had a market capitalization of around $5.5 billion and a value of $286.97 per token.

5. Binance Coin (BNB)

By capitalization of the market, it is the third biggest cryptocurrency. Those users who utilize the token for payment for trade can exchange it at a low price.

Future updates for cryptocurrencies

At the start of 2022, the investors of cryptocurrency were on edge the most famous CRYPTO: BTC (bitcoin) prices increased up to 61%. Another popular cryptocurrency Ethereum increased by 409 percent in the previous year.

In the spring of 2022, bearish patterns overwhelmed the most optimistic market momentum of 2021. Due to increased inflation and other issues like Russia's invasion of Ukraine and micro-economic concerns, the stock market collapsed.

Expert predictions

According to Professor Alexander, a finance expert predicts that Bitcoin will drop to a value of $10,000 in 2022, wiping out most of its gain in the previous year and a half.

But some other market analysts and experts don't see any crash in 2022.

Sayantani Sanyal claimed that there are many factors involved in higher the prices of bitcoin, especially increased business adoption and increased demand for bitcoin ETFs.

According to the Sanyal market, analysts expect that bitcoin will achieve the price of $100,000 at the end of 2023, while other experts believe that it could reach that level in the first quarter of 2022. Some investors predicted that the bitcoin exchange-traded fund ( ETF) could be approved in the US this year.

Cryptocurrency market prediction for 2024

It is difficult to predict what will happen exactly in the crypto market in 2023. Now it's a need particularly to pay attention to a problem of crucial details:

Mass-market adoption of payments of cryptocurrency
Regulation of cryptocurrency in the US and abroad
ETF depends on bitcoin and other different digital currencies
Bitcoin and other digital currencies are adopted by countries as a legal tender

FAQs About Cryptocurrency

How does cryptocurrency work?

Unlike Euros and US dollars, cryptocurrency is a digital and decentralized way of exchange. The value of cryptocurrency is not maintained by any authority. You can buy daily life goods and services with this digital currency. People like to invest as they do in other valuable metals and stocks.

Transactions are through blockchain. It is like a small checkbook linked with an extensive network of computers. These blocks keep the records of transactions and link with the previous transaction.

Are cryptocurrencies legal?

What is the difference between fiat currency and cryptocurrency?

Fiat currency is a legal currency supported by the government and controlled by a banking system like the US dollar. Fiat currency is not intrinsic. But cryptocurrencies, are not by backed monetary authority or private entities. Using cryptocurrencies in regular transactions and trading is influenced by their legal status. El Salvador was the country in the world that permitted the cryptocurrency Bitcoin with legal status for transactions in 2021.