Is It Safe To Invest in Crypto Currency in 2022 – Crypto Currency is a online currency which used in digital transaction through blockchain technology which means there will no middle man like bank or any company. Which actually means decentralization of currency and all the people involve will have the authority.
Crypto Currency first came in the name of Bitcoin in 2009 introduced by the person name Satoshi Nakamoto. From then it has become many fold large and captured the public eye. Though initially it looked like some kind of scam but as people started reading about it and understood its functioning ,people started excepting it .Now many countries have legalized it many have implemented heavy tax on the money you earn from it.
Crypto Currency in 2022 is a booming industry with its own ups and down. In 2022 it has footprint all over the globe. Since its inception in 2009 as bitcoin not has 9000 different types of crypto currencies. Its unique in a way as it requires proof of work like consumption of electricity and dedicated time. It a very volatile currency as no one knows hoe it will react tomorrow. Early birds have benefited from it largely.
History of Crypto Currency
Its history of Crypto Currency goes back to 1983 ,when an American Cryptographer David Chaum made a electronic money called ecash. After in 1995 Cryptographer David Chaum introduced cryptographic electronic payments. But for it security there need to be proof of work ,which means every bitcoin mining it will take some time and electricity will be consumed so that it show poof of work.
In 2009 an American guy name Satoshi Nakamoto developed the first crypto currency called Bitcoin. Slowly it got prominence in market as the online transaction started with this .As its a decentralized system so there in no broker or middle man involved.
El Salvador a country in central America in june 2021 legalized the Bitcoin crypto currencies after the bill was passed in their parliament with the majority of votes in the favour of Bitcoin. Even small country cuba legalized bitcoin. But many country have apprehension about it so many have not decided yet, china has announced it as illegal and crackdown on many miners in the country as it was hub of mining in the world.
How is crypto coin made
Making of crypto coin is called mining. Because its a type of process like extracting minerals from its ore like wise coin requires high end computer with powerful graphics and electricity. You should know the programming and you are good to go. Due to the crackdown of miners in china many miners have shifted to Canada of Switzerland. According to fortune report Switzerland become the largest mining hub in the word due to its cheap electricity.
Mining is type of validation of your transaction and miner gets some coin for mining. During mining a hash is generated ,complex hashing algorithm such as SHA-256 and scrypt is use to do the process. IT requires lot of electricity, according to the estimated electricity consumed by July 2019 is 7 gigawatt which is equal to 0.2 % of world electricity consumption. It is electricity consumed by Switzerland in a year. That’s why miner in taking there base to cheap electricity country.
Advantage and Disadvantages of Crypto coin
- Its a decentralized system with no single authority guided by distributed consensus.
- The system contains the data of its owner or to say its genesis code and could be tracked at any stage.
- There are very less chances of hacking or theft in the transaction as transaction path could ne tracked easily.
- Very less transaction fee.
- Many countries and organization have accepted it.
- Ownership can be proved very easily.
- It requires high end computer and graphics to be minted.
- High electricity consumption during mining and transaction.
- The market is very volatile ,no one knows what will happen tomorrow.
- It has become the gate for money laundering as no authority is in control and money transaction information is difficult to be availed by concerned authority.
- It has become toll to evade sanctions imposed by America on different entities and countries.
- Its mining cause environmental pollution as during mining it requires large amount of electricity and that causes large footprint of carbon.
- Many companies had become bankrupt due to online theft of crypto coin form their wallet.
How to invest in Crypto coin
There are many ways by which you can invest in Crypto coin. If you have a good capacity computer and you know programming then you can mint your coin also .But if you don’t have all these then you can go through the broker way . In this you will invest money through broker ,they will buy on behalf of you and when you withdraw they will charge some percentage of that money.
Now ,due to many startup invested into it ,it become easier to invest through there app. You can start investing with litter amount you can’t buy full bitcoin. There are SIP available where a fixed amount could be invested every month through your account.
How crypto coin could be misused
As we with great power comes great responsibility . If Crypto coin have many advantages to the society them there is disadvantage also. As many country will use it to peruse their agenda and evade sanction against them. Like a programmer called Virgil Griffith from America sentenced for 5 years for attending a seminar on crypto, where he talked about the technology which could be used in crypto to evade economic sanction against north Korea.
During wars it could be misused by different parties to evade sanction. It could used to help countries also in the phase of their crises.
If you really want to invest in crypto coin then you should firstly research yourself. After the full research choose the perfect platform where you want to invest in. Always invest when its price is declining and withdraw when it has some high. Consult expert and learn daily before investing .Its on your own prudence to invest in it or not. You should only invest in it if you can bear the pain if all the money get lost.
When was first Crypto Coin Invented
Who invented Crypto Coin
Satoshi Nakamoto ( presumably pseudonymous) as there is no photograph of him and nobody claimed it yet.
How many types of crypto coin available till 2022