It started with an idea. One exchange. An eye for an eye. The previously presiding exchange system, also known as a barter system, is how most of the ones before us made sure any transaction happened. This was the advent of our financial system, and it was as flawed as a child’s book.
It was far from what we intended it to be, but it sufficed for the time being because of its core meaning intended for trading.
As time went on, though, we wanted better and more voluminous transactions to go with, so we wanted a different system to suit our needs. It is essential to know that we didn’t achieve what we did in the blink of an eye.
The problem of double wants and deferred payments was a considerable impediment to previously existing crude economies. Fast forward a few hundred years or even a thousand, with the introduction of money, everything changed. It was honestly the most revolutionary thing that was invented and might always be the most revolutionary one.
Click here to avail your crypto engine today and to know more about how bitcoin mining works.
Mainly due to its endless possibilities. What prevailed as an excellent instrument of exchange for centuries gave rise to its problems with the increase in technologies and an increase in the complexity of the economic structures all around the world.
This article will tell you why celebrities are obsessing over crypto and the general high society. Before we go into that, though, we’ll give you a brief introduction to cryptocurrencies and their various uses in the current world. With that being said, without any further ado, let’s get in!
Cryptocurrencies
img source: finance-monthly.com
Cryptocurrency is a currency that is 100% digital. This means that there isn’t any tangible item that you can hold, so no coin or banknote is included. The question is who created cryptocurrency? The original creator is currently unknown, but the alias creator goes by Satoshi Nakamoto.
We do not know if this is a single person or a group of people. Still, we do know that they likely do not live in Japan as stated due to the fact that as those with excellent English skills and those who occasionally use British slang know that the creator lives in a country that speaks English as a native language due to the fact that the Bitcoin software and documentation are not in Japanese.
Satoshi Nakamoto created the most extensive and first cryptocurrency called Bitcoin. Bitcoin is the most popular and most valuable cryptocurrency at the time. We’re writing the script, but a sphere may overtake it. Ethereum is a coin that has been multiplying recently and is currently the second-largest cryptocurrency in the total market cap.
Market cap is the total value of all coins combined at the current value of the coin. Ethereum being at 290 dollars per coin. So all that aside, you may be asking yourself, how do these coins go up in value? Supply and demand. It is really like any other currency.
Suppose there is minimal currency available. Its value rises and the exact opposite. If there is a lot of that currency available, its value lowers. Knowing that, you may be wondering well if the value of the coin is based on the amount of the coin that is available how people get coins in the first place.
Difference Between Digital Currencies And Crypto
img source: gemini.com
When we say crypto is a digital currency, we mean it, but in a different way. This difference is essential to understand for you to know that celebs are obsessing over crypto and not digital currencies themselves. The federal banks of the country regulate the digital currencies, so the u.s bank is going to control the u.s dollar, the Bank of Canada, the Canadian dollar, and so on.
They are tracking all of these currencies crossing the borders. Suppose you transfer an amount more significant than ten thousand dollars. In that case, they start to ask questions. Even over nine thousand dollars, they will often ask you what the purpose of this transfer is and why you are transferring it or any cross-border transfer they will usually ask you and ask why are you transferring this money.
This then brings us to cryptocurrency. Cryptocurrency is decentralized. There is no central bank that follows this currency, so it goes through an encryption process, and it’s all encryption between point to point for the transfers.
That’s the only way to track it, and you store this cryptocurrency in a crypto wallet. It is a form of digital currency, but it’s not regulated again, which is why it’s a cryptocurrency. So that’s part of the reason why many people are skeptical of cryptocurrencies, because nobody is regulating them, and some think that this is a perfect way for people to launder money because it does not go through a central bank.
The Crypto Craze
img source: openthemagazine.com
It makes sense that people want to invest in crypto as soon as possible. The past two months were a pivotal moment for the cryptocurrency market, and it was all because many people decided to show what the power of an investor was. It is a straightforward thing to understand why celebrities are obsessing over crypto.
The first thing is that they are clever when it comes to their investments and want to take over the most considerable talk of the town. Cryptocurrencies are precisely that. First off, celebrities are likely to get faster info about progressing trends for crypto and companies due to being in high societies.
Celebs are always trying to increase their net worth, and crypto is one way to do that and the most attractive way to do that currently. Moreover, the celebs have financial managers who constantly advise them on clever investment decisions, which makes it another reason for them to like cryptocurrency so much.
