![\"\"](\"https:\/\/www.scraawl.com\/product\/wp-content\/uploads\/2016\/11\/BitcoinScraawl.png\")
<\/a><\/p>\nCatching up to today, here is what the cryptocurrencies look like now.<\/p>\n
Shared Public Ledger<\/h3>\n
Cryptocurrency, or online currency, was a response to big banks and the financial crash. Cryptocurrency, which includes Bitcoin, Litecoin, Ripple, and other online currencies, is a shared public ledger, rather than a ledger controlled by one big bank. Every single person who owns cryptocurrency has access to records of every single coin ever transacted between users. And instead of one entity updating these records, everyone in the network works together to continuously update this group ledger with the transfer of value between people\u2019s coin wallets.<\/p>\n
Protecting against fraud<\/h3>\n
Isn\u2019t it unsafe to trust strangers with updating this worldwide ledger? Bitcoin safeguards against stealing in a few different ways. When someone sends a payment into the universe, they have to include \u201cinputs\u201d with their request. These inputs show past transactions that prove they actually the money to pay with. Other users can dig back into past transactions using the shared ledger to make sure this person hasn\u2019t already used that money and that they have enough. Each Bitcoin transaction contains a private key, only known by the user, and other users in the network can check the validity of the transaction by comparing this private key to the users public username using a mathematical proof.<\/p>\n
Blockchains and Mining<\/h3>\n
The transactions are solved mathematically by people or groups of people and then put into groups called blocks. Each block contains transactions that were made at the same time, and each block is connected to the block before it. The groups of people that solve these equations are called miners. Mining is a system that makes sure transactions are chronological and keeps neutrality in place. Each time a block gets solved, the miner receives a portion of Bitcoin as payment, which is incentive to keep the system running.<\/p>\n
Limited Bitcoins<\/h3>\n
But at some point, Bitcoin will run out. There are a limited number of Bitcoin, exactly 21 million. Experts expect that all Bitcoins will be in circulation by 2140. At that point, each transaction will cost a small amount to create incentive for miners to solve the blockchain that keeps Bitcoin running.<\/p>\n
The elusive founder<\/h3>\n
The innovative blockchain technology that Bitcoin technology uses was created in 2008, by someone with the pseudonym Satoshi Nakimoto<\/em>. No one has been able to figure out who this creator actually is. It could even be a group of people. However, he\/she was the first to solve the \u201cdouble-spending\u201d problem of digital currency, and to this day Bitcoin hasn\u2019t run into any major issues at the fault of the system.<\/p>\n However, there are major risks involved with investing in Bitcoin and other cryptocurrencies.<\/p>\n Right now, Bitcoin is down, and many believe that Bitcoin\u2019s bubble has burst. However, other currencies even younger than Bitcoin are catching on. There are over 1384 cryptocurrencies in existence, some gaining more attention than others. All cryptocurrencies use the blockchain technology, with a few differences. For example, the currency Ethereum<\/em> has a faster transaction confirmation time and unlimited coins that will continue being released forever. Whereas Ripple, a smaller cryptocurrency, is more exclusive. Ripple is owned by a private company, and uses a consensus based ledger- where over 80% of developers have to agree on changes to the network. While networks like Ripple<\/em> and Ethereum<\/em> are still much smaller than Bitcoin, they are gaining traction for their own merit, and some experts predict they could outpace Bitcoin in 2018.<\/p>\n Experts and investors are unsure about the future of cryptocurrency. Investors continue to shy away from internet currency, while the government has finally put out tax regulations for investors. New cryptocurrencies are created regularly, and the blockchain technology has yet to encounter major problems, which means it could be a valuable alternative to traditional banking. Looking at the last year for Bitcoin<\/em>, Ethereum<\/em> and Ripple<\/em>, we\u2019re reaching the end of a peak. It may level, it may continue its downward trend, or peak again. While all cryptocurrency tends to follow the same trends, as time goes on, they may split apart and act differently.<\/p>\n Source:\u00a0https:\/\/xrpcharts.ripple.com\/<\/a><\/p>\n\n
\nnow, it\u2019s hovering around $8,000. It\u2019s difficult for the average joe to predict what\u2019s going to happen next, and investing is a huge risk.<\/span><\/li>\n
\nbuy and sell, the market is affected drastically.<\/span><\/li>\n
\nthat is still taking hold. As time goes on, it\u2019s more likely to even out.<\/span><\/li>\n
\nhave an issue with your wallet, there\u2019s no customer service number to call. While somewhat unlikely, your virtual currency could disappear in an instant.<\/span><\/li>\n<\/ul>\nOther types of Cryptocurrency<\/h4>\n
![\"\"](\"https:\/\/www.scraawl.com\/product\/wp-content\/uploads\/2018\/02\/Crypto-Blog-Ripple-Chart.png\")
<\/h3>\n![\"\"](\"https:\/\/www.scraawl.com\/product\/wp-content\/uploads\/2018\/02\/Crypto-blog-Ethereum-Chart.png\")
Source:\u00a0https:\/\/www.coinbase.com\/charts<\/a><\/p>\n![\"\"](\"https:\/\/www.scraawl.com\/product\/wp-content\/uploads\/2018\/02\/Screen-Shot-2018-02-23-at-5.16.11-PM.png\")
<\/a><\/p>\n
![\"\"](\"https:\/\/www.scraawl.com\/product\/wp-content\/uploads\/2018\/02\/Crypto-blog-timeline.png\")
<\/h3>\n