The word “cryptocurrency” has originated from the encryption methods that are hugely utilized for securing the network. A cryptocurrency is acknowledged as a kind of digital asset that is formed on a network and is distributed all across many computers. Due to this decentralized structure, they can exist in the absence of governments as well as central authorities. Blockchains are considered organizational processes that ensure the integrity of transactional data and they are important components of several cryptocurrencies. Cryptocurrencies are praised for several factors, like inflation resistance, transparency, divisibility, and portability.
Reasons behind the popularity of cryptocurrencies
If you follow the cryptocurrency news well then you will understand some vital facts about cryptocurrencies. They seem appealing to people for various reasons and among them some popular ones are:
- Many supporters view some cryptocurrencies, like Bitcoin as the future currency and so, they rush forward to purchase them. Some buy cryptocurrencies in the hope that they would turn more valuable with passing time.
- A few supporters are supportive of the fact that cryptocurrencies do not allow the central banks to dominate the supply of money and most of these banks lessen the worth of money through inflation.
- Some supporters love the technology that works behind cryptocurrencies as they are decentralized recording and processing systems and seem to be highly secured in comparison to the customary payment systems.
- A few speculators tend to support cryptocurrencies as they are more valuable and their value has been increasing with passing time.
Common kinds of cryptocurrencies
Some popular kinds of cryptocurrencies are:
- Bitcoin – This is a kind of digital currency and it is viewed as a cryptocurrency as cryptography facilitates the creation of Bitcoin and its transactions. Presently, there are above 18.5 million Bitcoin tokens that get circulated daily.
- Bitcoin cash – Bitcoin cash was introduced in the year 2017 and it is considered one of the well-known kinds of cryptocurrencies that are present in the market. It is different from bitcoin because its block size is 8MB compared to the original block size of Bitcoin that is only 1MB. And so, it has faster processing speeds.
- Ethereum – Ethereum is pretty different from Bitcoin as it focuses lesser on digital currency and more on decentralized applications. And so, people find Ethereum to be an application store.
- Litecoin – With time, Litecoin is gaining huge popularity as Bitcoin and its functions are the same.Litecoin was formed in the year 2011 and it is designed for improvingBitcoin technology.
- Ripple – Ripple is a kind of cryptocurrency but it is not blockchain-based. This is hugely prevalent for its protocol of digital payment. Ripple deals with 1500 transactions/second. In comparison, Ethereum is capable of handling 15 transactions/second and Bitcoin can handle 3-6 transactions only.
- Stellar – This cryptocurrency concentrates on money transfers only and its network has been designed for turning it faster and highly efficient. Jed McCaleb in the year 2014 designed it and he is also the founder of Ripple.
For getting detailed information on cryptocurrencies, you must go through Cryptocurrency News well.