Do you remember the moment when cryptocurrency started making sense to you? There’s much more to cryptocurrency than just Bitcoin, The controversy regarding the origins of cryptocurrency was forged from the limited amount of information about the alleged founder of Bitcoin, the world’s first and largest cryptocurrency.
Satoshi Nakamoto is a name referred by some to be a certain individual, and by others to be a group of individuals who founded both Bitcoin and Blockchain technology back in 2008.
So, how does cryptocurrency actually work? Bitcoin transactions and various types of other cryptocurrency transactions occur through block chain. The process of those transactions is grouped into blocks, each block has a cryptographic hash or number that is instantly calculated and then embraced as a check value, the number changes completely if there is the slightest change in data. Moreover, each block is numerically linked to a chain of previous blocks, thus making the entirety of the chain of blocks to be tamper-evident, or in other words, secure. This particular data structure is called the Merkle Tree, which was invented by Ralph Merkle in 1979, and is immensely used in the domain of cryptography and computer science in terms of encoding blockchain data in an efficient and secure process, this results in central authorities not having the capability to detect transaction records.
How did crypto gain value, and how do users increase crypto value? Users can raise the value of cryptocurrency by purchasing and retaining coins using the traditional investment technique. Buying stimulates demand, and so the value of cryptocurrencies rises. Also, the utility of cryptocurrency grows as more institutions invest in it and accept it as a form of payment. As a user, you may help in this process. This will improve the long-term worth of cryptocurrencies.
Fun Fact:
The use of cryptocurrency was quite different from now, on May 22nd 2010 (known as Bitcoin Pizza Day), Laszlo Hanyecz paid for two pizzas with cryptocurrency, while being the first person to use bitcoin commercially. He agreed to pay 10,000 Bitcoins for Papa John’s pizzas.
Hanyeczs’ pizzas have become increasingly costly ever since. Nine months after the transaction, Bitcoin made headway with the US currency, making the two pizzas worth $10,000, whereas the two pizzas were worth $2.4 million in 2015.
Bitcoin achieved a peak of $63,000 on its 11th anniversary in 2021. As a result, the two pizzas were valued at $630 million.
Cryptocurrencies provide us with stability, making them an appealing investment option now and in the future. Bitcoin methods are yet another rationale for the currency’s rising acceptance and importance.
