What are Cryptocurrency?
Crypto currency is an exchanging medium curdled for exchanging security information with the process of cryptography principle. 2009, was the notable year for the invention of the first ever created cryptocurrency by Satoshi Nakamoto known as Bitcoin. Since then, various crypto currencies have been made. Cryptocurrency is regarded as the use of currency to initiate cryptography principles for the proper implementation of a widespread, non-centralized and information of economy security. It makes uses of public and private keys for transferring cryptocurrency between people. Cypherpunk are mostly linked to counter culture movement, and crypto currencies are fiat currency implying that there is a budget line for a cryptocurrency value and used as an exchanging medium but not limited to a region making it autonomous. Bitcoin is one of the vital examples of cryptocurrency, making the market controlled by demand or supply just like any other valuables like gold and silver.
Miners are the community maintaining the safety, balance and integrity of the cryptocurrency system ledgers mainly the public, taking up the handling for a token. There are also designed cryptocurrencies to improve the units of currency, controlling the total amount of currency in circulation by placing an ultimate cap. It is executed to mimic the value and scarcity of precious goods and prevent persistent increase in prize. The crypto currencies are not yielding to closure by law institutions; the cyptocurrencies are classified to be anonymous. Cyptocurrencies are widely accepted across the countries of the world, but there has been induced misuse of this means and has brought about it limitation in some countries like China or Russia.
The first cryptocurrency, Bitcoin, was launched in year 2009 by pseudonymous Satoshi Nakomoto. It made use of SHA-256, a cyptographic hash function, as a proof of work scheme. Namecoin attempted at forming a decentralized DNS, which would make internet censorship complicated. Not quite long, in Oct. 2011, was the release of Litecoin, it was the 1st successful cryptocurrency to use a scrypt as hash function instead of SHA-256. Following the event, was the release of another notable cryptocurrency, named Peercoin, it was the first to use a proof of work/proof of stake hybrid. Several cryptocurrencies have been created but few have been successful, with the little technology intervention from them.
The representatives from central bank stated the adoption of Cryptocurrencies like Bitcoin which shows a huge challenge to the ability of central banks to influence the price of credit for the economy at large, they also stated that trading with cryptocurrencies is now common; there is a bound to be a loss of consumer confidence in fiat currencies. One of the senior bank officers named Gareth Murphy stated that the widespread use of cryptocurrency can make it complicated to prepare economic data by statistical agencies, which the government make use of to steer the economy. The founder of Robocoin anmed Jordan Kelley, launched the first ever Bitcoin ATM in the US, On Feb 20, 2014. It was in Austin that they installed the kiosk, Texas is like bank ATMs but it has no scanners for reading government issued identities like driver’s license or passport for the confirmation of the user’s identity. The Foundation of Dogecoin, a philanthropic company similar to Dogecoin and founded by the creator of Degacoin Jackson Palmer, contributed a sum of USD30, 000 of Dogecoin’s worth to helping the trip of Jamaican bobsled team to the 2014 Olympic games in Sochi, Russia. The community of Dogecoin aims at cementing its charitable credentials by generating funds to support service dogs for children with special needs.
Cryptocurrencies are widely accepted in all countries except Iceland, because of the freeze of Iceland on foreign exchange. The controversies behind the use of cryptocurrencies have resulted to restrictions in some countries. Regulators banned the handling of Bitcoins by financial institutions in China when there was a fast adoption earlier in 2014. Though cryptocurrency is legal in Russia, it is not restricted to purchase goods with any currency but not with the Russian ruble. On the 25th of March, 2014, there was an announcement made by IRS that Bitcoin will b treated as property for tax uses which the currency opposed. It insinuates that Bitcoin will be subject to capital gain tax. The only benefit of this rule is the legality of Bitcoins. There are issues with some cryptocurrencies like Coinye, an alticoin used without permission, making use of Kanye West, as its logo. There was comparism between the alticoin and Dogecoin. When the release of Coinye was made public, it was called Coinye West, and Kanye West’s attorneys sent a cease and close letter to the operator of Coinye; which stated that Coinye was willful trademark infringement, competition that it’s not fair, and duplicate which ordered Coinye to stop using the name and likeness of Kanye West