Introduction to Cryptocurrency – CryptoCurrency Facts

Cryptocurrency facts takes a simplified look at digital currencies like Bitcoin to help explain what cryptocurrency is, how it works, and its implications. On this site, we cover everything you need to know about:

TIP: If you are new to cryptocurrency, check out ourguide to cryptocurrency for beginnersfor a crash course on the basics. Or, check out ourcryptocurrency investing starter kit.

As of 2020, cryptocurrency has been used as a decentralized alternative to traditional fiat currencies (which are usually backed by some central government) such as the US dollar (USD). Meanwhile, cryptocurrency technology, including smart contracts and blockchain technology, have been used for a number of other purposes such as apps, cloud computing, and more.

For theaverage person using cryptocurrency is as easy as:

For advanced users, the possibilities are vast.

How do I get cryptocurrency? If you want to get cryptocurrency you can mine it, trade goods and services for it, or buy it via brokers and exchanges using dollars and other cryptocurrencies. Check out Coinbase for a broker/exchange/wallet solution.

What is a cryptocurrency address?: A public address is a unique string of charactersused to receive cryptocurrency. Each public address has a matching private address that can be used to prove ownership of thepublic address. WithBitcoin the addressis called a Bitcoin address. Think of it like a unique email address that people can send currency to as opposed to emails.

The first decentralized digital cryptocurrency can arguably be traced back to bit gold(not to be confused withBitgold), which was worked on by Nick Szabo between 1998 and 2005 but was never implemented.

Although bit gold is widely considered the first precursor to bitcoin, cryptocurrency pioneer David Chaums company DigiCash (a company founded in1989 which attempted to innovate digital currency),Wei Daisb-money(a conceptual system published in1998 which Satoshi cites it in the Bitcoin white paper), ande-gold (a centralized digital currency that started in 1996) are all notable early mentions.

With that history noted, modern digital currency starts in 2008 whenSatoshi Nakamoto (an anonymousperson and/or group) released theirpaper detailing what would become Bitcoin.

Bitcoin became the first decentralized digital coin when it was created in 2008. Itthen went public in2009.

As of 2020, Bitcoin is the most commonly known and used cryptocurrency. Meanwhile, other coins including Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and more are all notable mentions.

Given thepopularity of Bitcoin as well asits history, the term altcoin is sometimes used to describe alternative cryptocurrenciesto bitcoin (especially coins with small market caps).

As of January 2015, there wereover 500different types of cryptocurrencies or altcoins for trade in online markets. However,only 10 of them had market capitalizations over $10 million.

As of September 2017, there were over 1,100 cryptocurrencies and thetotal market capitalization of all cryptocurrencies reached an all-time high surpassing $60 billion! Then, by December 2017, the total market cap reached $600 billion (a multiple of 10 in only two months).

Since that time the total amount of coins has grown while the market cap has ebbed and flowed.

Although the future is uncertain, cryptocurrency is proving itself to be more than just a fad. Today cryptocurrency is shaping up to be a growing market that (despite the pros and cons) is likely here for the long haul.

On this site, we explore every aspect of cryptocurrency. Simply choose a page from the menu,visitour what is cryptocurrency page for a more detailed explanation of cryptocurrency, or jump right in to the how cryptocurrency works section to start learning about transactions, mining, and public ledgers.

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Introduction to Cryptocurrency - CryptoCurrency Facts