Guest Post was written by Sean Mortberg, an aspiring tech writer and a student at the University of Louisville in Louisville, Kentucky.
In 2009, a person or group under the pseudonym Satoshi Nakamoto developed and released Bitcoin, the first cryptocurrency, and the world was never the same. Before long, it was rising in value, with investors all over the world buying in and other cryptocurrencies began cropping up. To date, Bitcoin has seen the height of almost $20,000USD and a catastrophic drop to just over $6,000USD. While the market is uncertain, one thing is: cryptocurrencies are here to stay and whether you’re interested in investing, a skeptical observer, or a complete novice, it’s important to understand crypto.
Crypto is based on a technology called blockchain. Through blockchain, nodes referred to as miners verify and solve cryptographic sequences which then allow transactions to occur between traders. They can be traded for other cryptocurrencies, fiat currency, or traditional goods and services. Despite government and regulatory agency criticism, more and more companies are beginning to accept cryptocurrency as payment.
While Bitcoin is the most valuable and popular, there are over a thousand different currencies traded on what are known as exchanges, which operate similarly to stock markets. These cryptocurrencies and exchanges are founded through what are known as initial coin offerings, or ICOs, similar to initial public offerings of company stock.
Even if you aren’t interested in investing yourself, cryptocurrency is already changing the world and not just financially. Blockchain technology is revolutionizing industries from real estate to healthcare and governmental organization. Don’t let the world pass you by. Learn more about the world of crypto with the infographic below, provided by Best Accounting Schools.