The History and Why Do Cryptocurrencies Exist

History and Why Do Cryptocurrencies Exist. Basic principles of Blockchain technology, which is a peer- to- peer network existed for many years before bitcoin was created. In 2008, Satoshi Nakamoto wrote a paper on how and why to create with this technology an electronic cash system called bitcoin.

Cryptocurrencies, or virtual currencies, are digital means of exchange created and used by private individuals or groups. Because most cryptocurrencies aren’t regulated by national governments, they’re considered alternative currencies – mediums of financial exchange that exist outside the bounds of state monetary policy.

Importantly, cryptocurrencies can be exchanged for fiat currencies in special online markets, meaning each has a variable exchange rate with major world currencies (such as the U.S. dollar, British pound, European euro, and Japanese yen).

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History and Why Do Cryptocurrencies Exist

The first decentralized digital cryptocurrency can be traced back to “Bit Gold,” which was worked on by Nick Szabo between 1998 and 2005. Bit gold is considered the first precursor to bitcoin (although another notable mention in the history of digital currency was e-gold; e-gold notably stared in 1996 before Bit Gold or Bitcoin).

As of September 2017, there were over 1,100 cryptocurrencies and the total market capitalization of all cryptocurrencies reached an all-time high surpassing $60 billion! Then, by December 2017, the total market cap reached $600 billion (a multiple of 10 in only two months).

There are probably millions of people worldwide owning one type or another of cryptocurrency, (CC). There are hundreds of CC exchanges where you can buy and sell CC. And there are hundreds of stores that accept cryptocurrencies.

Many countries are joining the dance: Japan, Germany, Holland, Estonia, and many are others are considering legalizing CryptoCurrency.

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History and Why Do Cryptocurrencies Exist