WHAT IS CRYPTOCURRENCY?
Cryptocurrency is basically a digital or a virtual asset which is designed to work as a medium of exchange and relies on encryption which makes all the transactions very secure. The foundation of cryptocurrency is the blockchain technology. The most unique feature of Cryptocurrencies is its organic nature, which implies that it is not issued or controlled by any central authority hence is immune to any government rules or regulations.
WHAT IS BITCOIN?
Bitcoin is the first blockchain based cryptocurrency and is also one of the most popular and valuable cryptocurrency in the world. It was created in 2009 by Satoshi Nakamoto. In simple terms it is basically a computer file which is stored in a digital form that can be an app such as a digital wallet or even a computer. You can send bitcoins to your wallet or even to other people and every transaction associated with a bitcoin is recorded in a public ledger called as blockchain. Since everything is recorded publicly it is difficult for anyone to generate fake bitcoins or spend those bitcoins which they don’t actually own. These are valuable assets and people are willing to exchange it for goods and services.
WHAT IS ETHEREUM?
Ethereum is like an open source platform which is based on blockchain technology. This platform enables developers from around the world to build and deploy various decentralized applications like smart contracts and other financial applications. With blockchain as its foundation, Ethereum allows developers to create markets, digital organization, shared ledgers and other various services. Ethereum is now one of the most popular and robust cryptocurrency after Bitcoin and is considered to be one of the most valued investments of this century.
IS ETHEREUM SIMILAR TO BITCOIN?
When comparing Bitcoins and Ethereum, both cryptocurrencies share various common features, such as the decentralized distributed ledger. But the most distinguishing aspect of the two cryptocurrencies is their purpose and capabilities. Bitcoin was purely designed as a digital currency whereas the Ethereum blockchain in general can be described as an implementation of the blockchain technology itself. Bitcoin is seen as an alternate form of currency or digital currency whereas the purpose of Ethereum is to facilitate peer-to-peer contracts and applications. In simple terms a Bitcoin blockchain is a database of various accounts or wallets with an amount of currency stored in each of these wallets, whereas the Ethereum blockchain is much more sophisticated in its construction and is also capable of storing computer codes or applications.
WHY SHOULD I INVEST IN CRYPTOCURRENCIES?
The world is changing and so is our financial system. The dawn of digital technology has brought with it various means of accepting payment without the need of transacting in real or fiat currency. The technology is so efficient and reliable that it is not wrong if you bet on the fact that cryptocurrency is going to become an important medium of exchange and store of value in the near future. Cryptocurrencies are the future and the entire market is young and very optimistic. Cryptocurrency has literally become one of the most exciting assets to have in your investment portfolio in the 21st century. Hence, Cryptocurrency as an asset is greatly diversifying your investment portfolio.