What cryptocurrency is ~ about its future prospects
Cryptocurrencies including Bitcoin are also known as encrypted currencies, have been increasingly focused on worldwide in recent years, and many people are curious about their trends.
Since Bitcoin, the first cryptocurrency, was released in 2009, its price has been rising steadily, and now 1 BTC equals $600 (about 60,000 yen as of September 2016). （*BTC is the unit of Bitcoin）
In fact, when it was released in 2009, a Norwegian man bought Bitcoin worth 2,400 yen, and later forgot about the purchase, but four years later when he saw the price of Bitcoin, it had swollen to 18 million yen, which became a famous story in newspapers.
When it comes to the synonymous term for virtual currencies, it is ‘Bitcoin (bitcoin)’. By studying why Bitcoin has appreciated in value and its position in the world in this series, I think you will find investing in it attractive.
About Cryptocurrencies
In simple terms, a cryptocurrency is an online currency. Since it can be transacted via the internet, transfers can be made at amazingly low costs.
Transfer fees vary by exchange, but worldwide, you can send money anywhere as long as there is internet access.
Cryptocurrencies announced in 2008
Regarding cryptocurrencies, it is said that a person named Satoshi Nakamoto announced them on the internet in 2008.
However, in reality, it is not even known whether this person is Japanese. Sometimes news mentions someone from Australia or a non-Japanese name, but it is still unclear at this stage.
The blockchain technology of its own
This ‘blockchain’ technology is the technology that represents cryptocurrencies.
Sometimes people think that a certain company or government manages cryptocurrencies.
However, the characteristic of cryptocurrencies is that there is ‘no administrator’. We plan to introduce it in more detail in another article, but because this is a technology that has never existed before, many companies you know, such as Amazon and Microsoft, are starting to apply this technology.
Understanding ‘blockchain’ is essential when understanding cryptocurrencies and when investing in them.
About the types of cryptocurrencies
Currently, there are said to be over 1,500 kinds of cryptocurrencies. This number is increasing daily.
The times when I first interacted with cryptocurrencies were in hundreds of kinds.
And the vast majority 90% of currencies are said to be scams.Because the technology of cryptocurrencies is publicly available on the internet, anyone with programming knowledge can use that technology to create their own currency.
Therefore, some people emerged who wanted to make money from it.In another article, I will also introduce how to spot those fraudulent currencies.
Summary
Thank you for reading this article.
This is my first day of the series. I was a little unsure how to write it, but I intend to write clearly and honestly about cryptocurrencies.
When I talk about cryptocurrencies, many beginners ask, “Is Bitcoin safe?”Sometimes it seems natural to worry about safety.
There is a sense that many Japanese people are not used to investing, and media often highlights news like “Bitcoin was stolen” or “an exchange collapsed.”
So when talking with those people, I try to honestly explain both the good and bad points of cryptocurrencies as much as possible.
Yet everyone still feels it is risky and wonders how cryptocurrency investment should be approached. Through this series, I hope the initial impressions about cryptocurrency will be resolved, leading to a clearer understanding and better investment outcomes.
