In the first days of its launch in thousands of bitcoins were used to get a pizza. Ever since then, the cryptocurrency's meteoric rise to in April 2021, following its heart-stopping drop in mid- by about 70 percent to around boggles the mind Bitcoin ATMs Near Me of numerous people - cyptocurrency investors, traders or just the plain curious who missed the boat.
How all of it began
Bear in mind that dissatisfaction with the current financial system gave rise to the development of the digital currency. The development with this cryptocurrency is founded on blockchain technology by Satoshi Nakamoto, a pseudonym apparently used by a developer or band of developers.
Notwithstanding the numerous opinions predicting the death of cryptocurrency, bitcoin's performance has inspired many other digital currencies, especially in recent years. The success with crowdfunding brought on by the blockchain fever also attracted those out to scam the unsuspecting public and it has come to the attention of regulators.
Beyond bitcoin
Bitcoin has inspired the launching of several other digital currencies, There are now significantly more than 1,000 versions of digital coins or tokens. Not all of them are the same and their values vary greatly, as do their liquidity.
Coins, altcoins and tokens
It would suffice at this point to express you will find fine distinctions between coins, altcoins and tokens. Altcoins or alternative coins generally describes other compared to the pioneering bitcoin, although altcoins like ethereum, litecoin, ripple, dogecoin and dash are regarded as in the 'main' sounding coins, meaning they're traded in more cryptocurrency exchanges.
Coins serve as a currency or store of value whereas tokens offer asset or utility uses, a good example being a blockchain service for supply chain management to validate and track wine products from winery to the consumer.
A point to note is that tokens or coins with low value offer upside opportunities but do not expect similar meteoric increases like bitcoin. Quite simply, the lesser known tokens might be easy to get but may be difficult to sell.
Before stepping into a cryptocurrency, start with studying the value proposition and technological considerations viz-a-viz the commercial strategies outlined in the white paper accompanying each initial coin offering or ICO.
For those knowledgeable about stocks and shares, it's not unlike initial public offering or IPO. However, IPOs are issued by companies with tangible assets and a business track record. It is all done inside a regulated environment. On one other hand, an ICO relies purely on a notion proposed in a bright paper by a small business - yet to stay operation and without assets - that's trying to find funds to begin up.
Unregulated, so buyers beware
'One cannot regulated what is unknown' probably sums up the problem with digital currency. Regulators and regulations are still wanting to meet up with cryptocurrencies which are continuously evolving. The golden rule in the crypto space is 'caveat emptor', let the customer beware.
Some countries are keeping an open mind adopting a hands-off policy for cryptocurrencies and blockchain applications, while keeping a watch on outright scams. Yet you can find regulators in other countries more concerned with the cons than pros of digital money. Regulators generally realise the necessity to strike a balance and some are looking at existing laws on securities to attempt to have a handle on the countless flavours of cryptocurrencies globally.