Other crypto currencies
From barter, to the appearance of the Mesopotamian shekel 5, years ago, to gold coins, to the paper dollar, what constitutes money has evolved. Is the next step in that evolution the replacement of coins, paper bills and electronic accounts at commercial banks by cryptocurrencies like Bitcoin, Ethereum, Libra and Dogecoin? There are ongoing concerns about the volatility of the price of cryptocurrencies, their use for illegal and illicit transactions, their environmental impact, and the potential they pose for disrupting financial systems. What do we know about the actual and potential benefits and costs of cryptocurrencies to their users, and to society at large?
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- On the Origin of the Value of Cryptocurrencies
- What Are Cryptocurrencies Anyway?
- How will cryptocurrencies impact national currencies? - a $120 billion question
- 5 Reasons why you should go for cryptocurrency
- Should I Invest in Bitcoin or Other Cryptocurrencies?
- India to tax cryptocurrencies at 30%, puts digital assets in highest tax band
- The down-low on digital currency
- The 10 Most Popular Cryptocurrencies, and What You Should Know About Each Before You Invest
- 5 Different Types Of Cryptocurrencies And Their Importance
On the Origin of the Value of Cryptocurrencies
I am the richest person in the world but, sadly, only when it comes to Beebcoins. That is the name of the virtual crypto-currency I created to see how easy it is to leap on the virtual cash bandwagon.
Currently each virtual coin trades for much less than half of the value of that November peak. It is a bandwagon that others, notably Litecoin and Dogecoin, have jumped on to as well. More are leaping aboard every day according to figures gathered by crypto-cash tracking site Cryptsy which currently lists more than virtual currencies. Many of those newer virtual currencies have sought to outdo Bitcoin by sharpening up the computer code behind the currency to avoid some of the technical troubles that dog the market leader, he says.
Talking about alternative crypto-currencies, which are known as alt-coins, made me wonder how easy it is to create one. Jeff Garzik, one of Bitcoin's core developers, told me; "It is trivial to create your own currency. It doesn't really take much programming skill, even. Mr Garzik pointed me towards Matt Corallo who is behind the Coingen.
The first step was to get hold of some Bitcoins to pay the small fee Mr Corallo charges for a copy of the coin-generating software. This proved a hurdle because it is difficult to buy Bitcoins quickly. I was keen to put a layer of security between me and whoever I bought them from so ended up using the Barclays Pingit app on a smartphone to buy coins via the BitBargain website.
With Bitcoins safely in my digital wallet I transferred a few to Mr Corallo and, like many hundreds of others, filled in the form that defined how my coin, now dubbed Beebcoins, would work. I decided there would be a maximum of 21 million Beebcoins, picked an abbreviation BBC , uploaded a logo and made some choices about the technical innards of the Beebcoin system. The next step was to install the software on several computers and then get them talking to each other to form the little network needed to mine the coins.
Crypto-currencies are inherently community-based and I happen to have enough computers at home, seven at the last count, to form that community and get mining.
Coingen provides precious little in terms of support so I scoured the web for help and found a checklist to run through to get the network humming. I typed commands into the command line, helped the machines see each other and connect on my home network and got each one doing the complicated maths to generate coins.
Within 20 minutes the first message popped up telling me some coins had been mined. Sadly, that did not mean I could spend or share them straight away. Instead the Beebcoins had to "mature" - this meant that any computer had to complete a lot more mining work before it was rewarded.
There is no free lunch with an alt-coin. In total, it took the machines I used more than six hours running at full speed to complete the work needed to get those coins to mature.
I now have thousands of the things. I wonder what I've spent in electricity to do all that work? It struck me then that if I wanted to turn Beebcoins into an actual currency it would take much more than just computers. It would require a marketing job to get people to value the coin and back it with more computers or even real cash. Also needed would be people with far better web-programming skills than mine to add a friendlier layer to that virtual cash-generating system.
The sheer hard work involved in getting beyond the basics was exposed by tech news site Ars Technica which created its own crypto-currency - Ars Coins. It recruited a few developers to help and even so hit real problems when it rolled out the currency to readers.
Solving them and then getting people to buy in was hard. Even then the only reward it could offer Ars Coin miners was special icons on messages they post to the magazine's discussion forums. For me the Beebcoin experience has given me a greater understanding of how crypto-currencies work and why some of them fail and others succeed.
The value of these virtual currencies lies, like the real things, in what people are willing to pay for them. That's perhaps why so many of these alt-coins revolve around an online community as people are already invested in that group and have a ready need to reward the good behaviour of other members. At the moment, Beebcoins have zero monetary value unless there is someone out there that wants to take the network off my hands.
One careful owner. All offers considered. Going cheap. Virtual cash thieves target Android. The Satoshi Scoop. Hacker attack closes Bitcoin bank. Bitcoin dogged by tech troubles. Image source, Reuters.
The difficulty involved in mining Bitcoins is making many people try other crypto-currencies. BBC bucks. Mining virtual coins can cost more in electricity than you can make cashing them in. Published 27 March Published 7 March Published 5 March Published 10 February Garrick Hileman.
What Are Cryptocurrencies Anyway?
Given the intense confusion surrounding this topic, we present here a primer that explores the topic from a public policy viewpoint , starting with the most basic points. It is intended for an intelligent non-specialist and therefore required a fair amount of simplification, for which we apologize to any technical experts who would have explained things differently. Cryptocurrency prices have been extremely volatile. Cryptocurrency volatility may likely continue, as many cryptocurrencies limit their monetary supply.
How will cryptocurrencies impact national currencies? - a $120 billion question
Cryptocurrency comes under many names. You have probably read about some of the most popular types of cryptocurrencies such as Bitcoin, Litecoin, and Ethereum. Cryptocurrencies are increasingly popular alternatives for online payments. What is cryptocurrency? A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet. These wallets can be software that is a cloud-based service or is stored on your computer or on your mobile device.
5 Reasons why you should go for cryptocurrency
Like a teenager forced into adulthood, cryptocurrencies are finally growing up — with plenty of drama along the way. The observation defies the image of crypto as cutting its own path, devoid of attachments to either stock markets or governments. It may be no coincidence that the closer alignment between crypto and stock prices come as digital assets are being promoted more by the traditional financial establishment, no longer defying it. As such, he said crypto is worth adding to portfolios as a hedge against more traditional investments. The price of Bitcoin alone has fallen dramatically from its November high.
Should I Invest in Bitcoin or Other Cryptocurrencies?
If you are going to invest in anything, you should always take the time to learn about what it is. Only by doing this can you figure out the risk-return ratio and decide what suits you as an investor. This article aims to introduce you to crypto in an understandable way. In a few minutes of reading, you should know a little more about crypto, tokens, and blockchains. A cryptocurrency is a digital currency that is secured by cryptography.
India to tax cryptocurrencies at 30%, puts digital assets in highest tax band
Dogecoin has a superfan in Elon Musk, Ripple premined billions of XRP coins and Tether is a bridge between physical money and cryptocurrencies. Bitcoin is almost a household name now, as it has been around for more than 10 years. The cryptocurrency was created in via a white paper written under the pseudonym Satoshi Nakamoto. It is open source and decentralized. There are no transaction fees associated with Bitcoins, but there is also no government guarantee behind the currency. If you can name only two types of cryptocurrency and Bitcoin is one, Ethereum is probably the other. Ethereum is the most commonly used blockchain with the second-largest market cap, right after Bitcoin. Ether is the native coin of this decentralized open-source blockchain.
The down-low on digital currency
Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units. Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions.
The 10 Most Popular Cryptocurrencies, and What You Should Know About Each Before You InvestRELATED VIDEO: What Are The Different Types Of CryptoCurrency? 45+ Crypto Sectors Explained! Part 1
Retail-banking clients and institutional investors are expressing increased interest in this financial vehicle and in the distributed-ledger technology DLT that underlies it: particularly innovations such as blockchain. Indeed, some investors, fintechs, and venture capital funds are beginning to make a sustained commitment to cryptocurrency, regarding it as the future of money. Banks can no longer afford to ignore this opportunity. Of course, they have reason to be cautious. Some financial services leaders remain skeptical of the value that cryptocurrency has as an asset class, and individual cryptocurrencies have lost market capitalization at times including this year. During the COVID crisis, cryptocurrencies have experienced volatility, and their reputation has been tarnished by the association of Bitcoin, the most prominent cryptocurrency, with criminal acts such as the Twitter hack of July
5 Different Types Of Cryptocurrencies And Their Importance
The system, which can process only about seven transactions per second, nonetheless guzzles electricity owing to its consensus protocol, proof of work, designed to make mining labor-intensive. The strengths: A built-in programming language lets developers write computer programs, called smart contracts, that run on the blockchain. Most initial coin offerings ICOs so far have been based on Ethereum smart contracts. The downside: Ethereum also uses proof of work, making it relatively slow and energy-hungry. Many early smart contracts are vulnerable to hacking, and the field of smart-contract security is immature.
Aside from placing earnings from cryptocurrencies and non-fungible tokens NFTs in India's highest tax band, Sitharaman also said losses from their sale could not be offset against other income, delivering another disincentive to trading and investment in digital assets. No official data is available on the size of the Indian crypto market. Proponents of digital currencies have been hoping that the establishment of a formal tax framework could at least spare the crypto industry from some of the more draconian measures that the government had been considering. Crypto exchanges also hoped the the new tax regime would signal acceptance of digitial currencies by the authorities, and reassure corporates that they can enter the market.