Posted in Cryptocurrencies

An Insight Into The World of Cryptocurrencies #2

Hi guys!

Welcome back to my blog!

This is the second blog post of Financial February, a month dedicated to spreading financial literacy.

So today we are going to talk about the history and the origins of Bitcoins.

satoshi

Satoshi Nakamoto, a name well-known name in the cryptocurrency market and is usually tagged as the “Creator of Bitcoin”. But only a few people know that Satoshi Nakamoto never intended to create the world’s first cryptocurrency.

His goal was to create a peer to peer electronic cash system that would overcome the limitations of digital cash system, the primary one being the limitation of having centralized authorities.

In the white paper published by Mr. Nakamoto, he states that:

“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers the inherent weaknesses of the trust-based model.”

“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transfer directly with each other without the need for a trusted third party.”

The decision of Satoshi to create a digital cash system without a central entity gave birth to Bitcoin the world’s first cryptocurrency. When Satoshi created Bitcoin it’s value was a little over a single cent. With the passage of time, it’s value skyrocketed. The current price of Bitcoin as on 13 February 2018 is $8583.04 with a gigantic market capitalization of $144,733,331,604 as per coinmarketcap.com, Pretty insane right?

One another interesting aspect of the Bitcoin history is that the name Satoshi Nakamoto is a pseudonym. Thus, it isn’t confirmed as to whether Satoshi Nakamoto is a “he” or a “she” or even a “they”. Some even say that the name could be actually a group of four Asian Technology Companies. Samsung, Toshiba, Nakamichi, and Motorola. The name can be created by taking the “sa” from Samsung, “toshi” from Toshiba, “naka” from Nakamichi, and “moto” from Motorola.

The current status of Satoshi Nakamoto says that he is the owner of a million bitcoins. Implying that he has a net worth of approximately $8.5 billion (based on 13 Feb 2018 exchange rate).

Ever wondered what would happen if Satoshi Nakamoto decided to sell a million bitcoins?

Bitcoin has a finite supply of 21 million which is expected to be reached by 2140.

Nakamoto’s 1 million bitcoins amounts to approximately five percent of the entire cryptocurrency.

In case Mr. Nakamoto decides to sell his entire share of bitcoins in the market. The most likely immediate effect will be the prices of cryptocurrency plunging down but only for a short period of time.

In the long term, the market might stabilize on its own because of sufficient liquidity, hence preventing any financial crisis or market crash for that matter.

That’s it guys! I hoped you liked it and gained something out of it.

In the next blog post of An Insight into the world of cryptocurrencies series, we’ll be looking into cryptocurrencies as a potential investment and will figure out whether one should invest in them or not.

For a more detailed study, I’ve put the links below of some really amazing websites I referred to, do visit them once.

Thanks for reading.

Any questions/suggestions?

Email Us: questionme41@gmail.com

References:

  1. https://www.cryptocurrencyarmy.com/cryptocurrency-explained/the-history-of-cryptocurrency/
  2. https://www.inc.com/larry-kim/15-unusual-facts-amp-theories-about-mysterious-b.html
  3. https://blockgeeks.com/guides/what-is-cryptocurrency/

 

Read Satoshi Nakamoto’s White Paper by clicking on the link: https://bitcoin.org/bitcoin.pdf

 

 

 

Posted in Cryptocurrencies

An Insight Into The World Of Cryptocurrencies #1

cryptocurrencies

 

If people around you by now haven’t started talking about the cryptocurrency rage, predominantly about bitcoin then I’m sorry to say you live in an outlandish world. Stay tuned, Stay updated.

Hi everyone!

Welcome back to my blog!

This is the first blog post of The Financial February month. A month dedicated to spreading financial literacy. A lot of research, time and effort have gone in writing this post. I hope you like it and if you garner even 1% knowledge from it, my mission behind writing this blog post will surely be accomplished.

So, let’s get started!

Before delving into the historical records, for this post let me elucidate on what exactly is Cryptocurrency.

A google search of the word cryptocurrency will show:

“A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”

However, cryptocurrency in a layman’s language could be understood as a digital currency that has no centralized authority. A currency through which anyone can buy/sell commodities by eliminating the use of financial institutions like banks. Furthermore, the reason it uses the prefix crypto is that it uses cryptography (the art of writing or solving codes) as a medium to secure transactions, control the creation of additional units and verify its transfer.

Divulging from the topic but it’s interesting to note here that all the major developments regarding cryptography have taken place during the times of crisis.

The first major advancement in the field of cryptography took place during the II World War when Germans used the electronic router-based cipher called Enigma to communicate information. The movie Imitation Game could be taken as a reference.

After that 2008 financial crisis paved the way for the creation of cryptocurrencies relying heavily on cryptography, the most common one being Bitcoin.

It is important to note here that Bitcoin is a type of cryptocurrency and not the only cryptocurrency available in the market.

Anyways coming back to the topic, as per www.coinmarketcap.com dated 11 February 2018, there are 1516 cryptocurrencies present in 8714 markets across the world. Some of the most famous being: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Dash etc.

The Concept of Blockchain:

It’s is because of the concept of Blockchain technology that cryptocurrencies make up such an intriguing area of study.

Blockchains are the base on which cryptocurrencies work. It’s a decentralized ledger that records payments and transactions in a safe manner. These transactions need to be verified and blockchains need to be regularly enlarged so that it can account for new transactions and payments. This job is bestowed upon a group of people called “miners” or “cryptocurrency miners”.

Crypto-mining involves using high powered computer to solve mathematical equations (mostly hash problems) to add transactions to the Blockchain, a public ledger. The first miner to solve the problem is entitled to a reward which is either in the form of cryptocurrency coins or transaction fees associated with a block.

But blockchain has one major issue, something which is forcing the Chinese govt. to shut down miners. At present, according to Forbes magazine, China produces the most bitcoins in the world using Bitcoin Mining.

So, what is the problem exactly?

One major issue with Crypto-Mining is that it is an energy-intensive process. It consumes too much electricity. Bitcoin mining is estimated to use up to 4 gigawatts of electricity, equivalent to three nuclear reactors’ production level which is an insane amount of electricity wastage.

Looking from this perspective one might not like cryptocurrency much but it does have a lot of awesome advantages to it which we will unleash in the upcoming blog posts.

That’s it guys! I hoped you liked it and gained something out of it.

In the next blog post, we’ll be digging the historical roots of Bitcoin majorly about the man behind its creation and its current status too.

For a more detailed study, I’ve put the links below of some really amazing websites and YouTube videos. Do visit them once.

Thanks for reading.

Any questions/suggestions?

Email Us: questionme41@gmail.com

Detail Study Material:

https://www.coindesk.com/information/what-is-blockchain-technology/

https://www.youtube.com/watch?v=kubGCSj5y3k

https://www.youtube.com/watch?v=GWKl6efhokg&t=375s

References:

https://blockgeeks.com/guides/what-is-cryptocurrency/

https://www.fool.com/investing/2017/12/19/16-cryptocurrency-facts-you-should-know.aspx

Posted in General Posts

Financial February

financial-bitcoin

Hi guys!

Welcome back to my blog!

This is my first blog post of February month. I really had a hard time picking a topic to write upon in recent days, thus I decided to affix a theme with this month. As it is evident from the title itself the theme for this month is Financial February.

There are many reasons as to why I chose this theme, the primary reason being my aim of spreading financial literacy among the masses. Financial literacy is paramount because no what profession you enter, what position you undertake, the understanding of financial aspects can help you make wise decisions on money-related matters. Not only that, but I also believe it helps in making us more self-reliant. So, when we talk about women empowerment the first step is to make them financially literate.

Other than that, the ongoing cryptocurrency craze was also one of the reasons I thought Financial February could be the best theme for this month. With the cryptocurrency plunging, governments of various countries trying to either ban or regulate these currencies, the endless debates about its constant theft and questionable security, cryptocurrencies had gained gigantic coverage over the past few months.

The last reason that supported my decision of choosing this theme was the Budget of 2018. It was released on 1 February 2018 and instantly became a talking point.

Thus, to keep myself as well as you guys updated about the current vogue and the happenings around I thought to keep the theme as Financial February.

That’s it guys.

Hope you liked the theme.

Stay tuned! Follow and Subscribe!

Any questions/suggestions?

Email: questionme41@gmail.com