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What is This Cryptocurrency? Bitcoin

round silver and gold coins

Photo by David McBee on Pexels.com

In the world of cryptocurrency, there are so many different coins and tokens that can make any person interested in the hobby lose interest. In this blog post, you will learn about the top 10 cryptocurrency coins by market cap (the total valuation of the coin or token derived from multiplying the number of coins or tokens by each number of coins or tokens in circulation). There will be more posts attempting to describe in the simplest terms the different projects that exist in the cryptocurrency world.

The first cryptocurrency that has been a household name since it burst out to its all time high of 19K is Bitcoin. In 2018, the price skyrocketed to new levels that would change the way cryptocurrency would be looked at. Cryptocurrency obtained the attention of mass media as well as most individuals as they began to see the value of Bitcoin or at least the speculated value of the item. Bitcoin would then drop to a new normal of 9K. Regardless of the price, Bitcoin was the first cryptocurrency that was created back in 2012 and had the ability to allow individuals the liberty to have their own store of value in these digital coins. The digital coins need a digital wallet that allows the individual to be able to access the coins and send them to a desired destination without having to physically transport the coins. Bitcoin Graph

Bitcoin allowed the individual the ability to learn about how to store their own cryptocurrency in a specified wallet. There are multiple forms of storing Bitcoin such as a digital wallet or off-line wallet. By using the wallet, you are able to access your Bitcoin and keep it safe. The ability to access Bitcoin was through the generation of a specific wallet passcode and password. The passcode allowed you to keep a sequence of 12 words that when entered in the correct order would allow individuals to access the Bitcoin in case the password was forgotten. The password serves as a normal password. With this technology, individuals were able to have their own ability to use Bitcoin as a store of value and send Bitcoin without the need to transport a physical store of value like gold, silver, or similar items. The following is an example of a passcode for Bitcoin.

point, new, start, create, justice, love, compassion, creativity,

action, judgment, completion, victory

While Bitcoin is an innovative cryptocurrency that allows people to send Bitcoins to other users, it does not create a digital infrastructure that would allow individuals to create apps or any development on the blockchain. Bitcoin does not have the ability to create something like Ethereum where individuals can create tokens on top of the Ethereum blockchain. Bitcoin is a store of value that can be sent to other users for transaction purposes. While some may think that this is a negative for Bitcoin, it allows for Bitcoin to focus on just on aspect of the cryptocurrency blockchain which is the store of value.

Bitcoin also has had a fork through the Bitcoin Cash coin. Bitcoin remained Bitcoin but while there was a split in the number of miners who wanted to keep Bitcoin as it was, Bitcoin Cash was created to support a new idea of what Bitcoin should be. There are several protocols that back cryptocurrencies such as the ability to help create security and allow for miners to be able  to mine the Bitcoin while still remaining profitable. Most cryptocurrencies have experienced a fork in the coin such as Litecoin which had a fork that led to Doge Coin. These forks allow for miners to change the way the coin is mined or a certain protocol that could be more favorable to the community. While there are some purists and others who like the new coin, the important part of this is that it allows individuals to understand that Bitcoin is allowing individuals to nurture an idea that can lead to the revolution of defining what a store of value could be.

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