What’s Story With This Cryptocurrency Anyway?


The first cryptocurrency was bitcoin, which was created in 2009 and is still the best known. There has been a proliferation of cryptocurrencies in the past decade and there are now more than 1,000 available on the internet. Bitcoin soared as high as $20,000 before losing 30 per cent of its value just before Christmas, sparking fresh speculation and fears of a bubble.
Here’s everything you need to know about cryptocurrencies.

How do cryptocurrencies work?


Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated math problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.


What are the most common cryptocurrencies?

• Bitcoin: Bitcoin was the first and is the most commonly traded cryptocurrency to date. The currency was developed by Satoshi Nakamoto in 2009, a mysterious figure who developed its blockchain. It has a market capitalization of around $230 billion as of December 2017.
• Ethereum: Developed in 2015, ether is the currency token used in the Ethereum blockchain, the second most popular and valuable cryptocurrency. Ethereum has a market capitalization of around $67 billion as of December 2017. However, Ethereum has had a turbulent journey. After a major hack in 2016 it split into two currencies, while its value has in recent months reached as high as $840 but it has previously crashed briefly to as low as 10 cents. It has proved hugely popular as a launch pad for other cryptocurrencies in 2017, which use the Ethereum blockchain’s code.
• Litecoin: This currency is most similar in form to Bitcoin, but has moved more quickly to develop new innovations, including faster payments and processes to allow many more transactions. The total value of all Litecoin is around $5 billion.