Why was cryptocurrency created?

Crypto has gained a hige popularity in the investment market. This virtual currency has taught people how they can send money to one another with the help of the internet. Many market researchers call cryptocurrency an alternative to traditional money. Today, you will hardly find someone who doesn’t invest in cryptocurrency. Believe it or not, just like equity and mutual fund, cryptocurrency also has the potential to provide you with exceptionally high returns within a short time. If you are worried about your future and want to start a crypto investment, you should start with Bitcoin 360 AI iFlex and other such applications. Now, before you invest in cryptocurrency, don’t you think you should have sound knowledge about the history of cryptocurrency? So, let’s read on.

What is cryptocurrency?

Before moving on to the part of why cryptocurrency was created, as a novice crypto investor you should know about what cryptocurrency is. Cryptocurrency is nothing but a digital currency which uses the method of cryptography and blockchain technology. Most cryptocurrencies are decentralized in nature and that means they are immune to all kinds of government interference. This type of virtual currency ensures secure online payment in a much faster compared to traditional money. Just like the stock exchange, there is a cryptocurrency exchange which allows you to purchase your preferred cryptocurrencies, and you can trade such digital assets anytime from anywhere. Other than this, there is always the option of cryptocurrency mining. Miners can get a reward of bitcoin or other currency by adding a new block to the network.

When and why was cryptocurrency created?

The concept of cryptocurrency first emerged in the year of 1983 when an American cryptographer created electronic cryptographic money or ecash. A decade later, in 1996, several research papers were published on cryptocurrency systems. Finally, with the widespread use of the internet in the 1990s and the early half of the 2000s, the idea of cryptocurrency was discussed as an alternative of fiat currency.

In 2009, Satoshi Nakamoto developed the first-ever cryptocurrency in the world named bitcoin. Gradually, many other cryptocurrencies such as litecoin, peercoin, dogecoin, ripple, ethereum, tron, etc. came into the picture. Today, therefore several countries in the world such as El Salvador, Cuba, etc. have accepted cryptocurrency as legal tender. More and more countries are passing legislation to accept cryptocurrencies as payment methods and make investing in such currencies more accessible.

Intension to invent crypto currency:

Now, you must wonder what was the reason behind the inception of cryptocurrency. The most important reason was to help people engage in financial transactions which do not solely rely on the government, banks and other financial institutions. Apart from this, there are several other reasons as well. Let’s learn about those in the following paragraphs.

  • Cryptocurrency is treated as a digital entry for an online database system. Unlike physical money, cryptocurrency provides you with a peer-to-peer system which enables you to send and receive money from anyone.
  • Another reason behind creating cryptocurrency was its easy transaction facilities. You can easily use your digital wallet to process a transaction with crypto.
  • Due to the use of blockchain technology, cryptocurrencies are relatively secure for payment and this can be one of the greatest advantages for crypto investors.
  • Compared to traditional money, cryptocurrency is subject to low transaction charges and short settlement times. When it comes to cross-border transactions, cryptocurrency is much better than fiat currencies.
  • Believe it or not, this virtual currency has enormous potential and the industry of cryptocurrency is growing exponentially since its inception in 2009. Though the crypto market is a little volatile, it provides high returns to its investors every time after it recovers from its downturn.
  • Not only this, but there’s another reason that is behind the inception of cryptocurrency also – that is its potential inflation hedge. With its high return, cryptocurrency can beat inflation easily.

After reading all the above points, you can understand that cryptocurrency was created to provide its users with a more inclusive financial system. Apart from the purpose of transactions, you can also think about cryptocurrency from an investment perspective. Due to the user-friendly interface, it is much easier to start your crypto coin investment with such web applications.