A cryptocurrency is a highly secure digital currency that is created and managed through the use of advanced encryption techniques known as cryptography.
A virtual concept of Currency Bitcoin was created in 2009 whereas it gained the attention of media in 2013 when it peaked at a record $266 per bitcoin.
Bitcoin sported a market value of over $2 billion at its peak. Well, after that there is a gradual decrease in its growth. People all around the world are in a dilemma if this trend of #cryptocurrency is over? Are other currencies including bitcoin is finished?
Let’s understand Cryptocurrency:
Bitcoin: Bitcoin is decentralization, free from government manipulation. Bitcoins are created digitally through a “mining” process that requires powerful computers to solve complex algorithms and crunch numbers. They are currently created at the rate of 25 Bitcoins every 10 minutes and will be capped at 21 million, a level that is expected to be reached in 2140.
Ripple: It was launched by #OpenCoin, a company founded by technology entrepreneur Chris Larsen in 2012. Like Bitcoin, Ripple is both a currency and a payment system. The currency component is #XRP, which has a mathematical foundation like Bitcoin. The payment mechanism enables the transfer of funds in any currency to another user on the Ripple network within seconds, in contrast to Bitcoin transactions, which can take as long as 10 minutes to confirm.
Litecoin: Litecoin is regarded as Bitcoin's leading rival at present, and it is designed for processing smaller transactions faster. It was founded in October 2011 as "a coin that is silver to Bitcoin’s gold,” according to founder Charles Lee. Unlike the heavy computer horsepower required for Bitcoin mining, Litecoins can be mined by a normal desktop computer. Litecoin’s maximum limit is 84 million – four times Bitcoin’s 21-million limit – and it has a transaction processing time of about 2.5 minutes, about one-fourth that of Bitcoin.
The Future of Cryptocurrency
Some economic analysts predict a big change in #crypto is forthcoming as institutional #money enters the market. They believe that a tremendous growth will rise again soon. But at the same time, some believe this isn’t the way investment is carried ahead. Where as, there are still nations which had not legalized the cryptocurrencies yet. As soon as the technology of #blockchain booms the market, cryptocurrency era will rise. But no one is sure enough if this will happen soon or not.
Different Cryptocurrencies one can take a chance to invest on is #Bitcoin, #MintChip, #Ripple and #Litecoin.
The conclusion if you should invest or not, this is the answer for you. Recognize that you run the risk of losing most of your investment, if not all of it. Well, investing in a cryptocurrency is a good fortune or not is still a grey area.