Facts About Bitcoin and Crypto Currency in 2018
The technology has been disruptive due to the influx of the cryptocurrencies. There will be an alteration in the investment, payment and the transaction of the money from one user to another. It is because the people involved are in the exchange of the fiat to the cryptocurrencies. Here we will see about the token which is necessary to understand before investing.
- Digital currencies are volatile
The rate of the cryptocurrency is volatile and there will be a change from the day to day price. The reason for the volatility is due to the various exchanges of the coins. The market capitalization of the coin has been increased about more than 3000% from the beginning onwards.
- Cryptocurrencies lack backing
The wallet in which the currency is stored is traded around the world and the digital currency is not controlled by the government and it is found to be open source. The fundamental factors are found to be absent in the coins which give the valuation.
- Nearly 1300 cryptocurrencies
Bitcoin is the first cryptocurrency which is traded in the market. About 54% of the market capitalization of the cryptocurrency is making up by the bitcoin. Among the virtual coins, bitcoin is the one available for the purchase.24 coins are having the market capitalization among 1300 coins.
- The blockchain is where the value lies
The technology of the digital currency empowers that these coins have the true values. All the currency is found in the network of the blockchain technology and it is a decentralized one. All the transactions are recorded and it is private and secured one.
- Miners play a pivotal role
Every transaction in the blockchain should be verified for the operation of the network. As there is an expansion of the amount transaction the network also gets expanded. This expansion of the blockchain technology will be handled by a team called cryptocurrency miners. The complex equations can be solved by the cryptocurrency mining. The tokens are given as a reward for the miners to complete each transaction and to log footprint. The other reward is each block of the chain has the fee which is profitable for the larger trades. More electricity is consumed for the mining and verification of the blockchain. To overcome this problem the manufacturers I the market has released NVIDIA which is an advanced microdevice used for the faster transactions.