Over the past few years, digital or virtual currencies have garnered traction as an attractive investment option. These digital currencies, also known as crypto currency, are built with cryptographic protocols that make all transactions secure. Cryptocurrency are based on blockchain technology, which is a distributed ledger managed by network of computers. There are no physical assets of this currency, but all owned currency is stored online on cloud.
One of the best features of crypto currency is that it is created and controlled by peer-to-peer transactions and maintained by participants rather than a centralized body like a bank. Combined with cryptographic protocols, cryptocurrency is free of manipulation by any government and can be easily exchanged throughout the world.
Bitcoin is the first blockchain technology powered cryptocurrency, with initial release in the year 2019. Its creator, Satoshi Nakamoto, remain a mystery. Bitcoin can be used through bitcoin wallets for other currencies, products and services. In terms of evaluation, Bitcoin is the most valuable cryptocurrency and is widely popular. Bitcoin reached its peak of valuation in 2017, giving high returns, of unto 1400%, to people owning units of bitcoin.In spite of the changing valuation and opposition from many governments, Bitcoin is seen as a good investment option by many traders and investors in currencies. Since it is not a normal equity investment, Bitcoin and other digital currencies are seen as high-risk investment.
Though traditional thinkers project cryptocurrency is a financial bubble yet there are many people who believe that digital currencies are the future as they provide faster transactions across globe and come with little or no fee for payments, compared to traditional currencies. Apart from Bitcoin, many other digital currencies have cropped up across the globe like Litecoin, Ethereum and Ripple.