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When Satoshi Nakamoto invented Bitcoin, he never thought he was inventing a currency. Nakamoto’s ultimate goal was to develop a system for digital cash without requiring a central entity to control and regulate it. This decision led to the birth of the world’s first cryptocurrency. HISTORY AND GROWTH Since the emergence of Bitcoin in 2009, many other cryptocurrencies have entered the market, namely Ethereum, Litecoin, and Ripple. According to the Global Cryptocurrency Benchmarking Study 2017 by University of Cambridge, the combined market value for all cryptocurrencies until April 2017 was around $27 billion. As soon as Bitcoin gained popularity, it required a market price to compare it against the traditional currency. It also required a trading exchange where users could trade it against actual money. The first trading exchange for trading Bitcoins and establishing a market price was founded in early 2010.  Today, more than 100 exchanges are dealing in cryptocurrencies. The major trading exchanges include Coinbase, Bithumb, Poloniex, and Kraken. In 2015, Bitcoin secured its place on the New York Stock Exchange creating a proprietary index to track Bitcoin with the ticker symbol NYXBT. At the time of this blog post, NYXBT has spiked more than 600% in the past year!  Source: wsj.com  The trading volume for all cryptocurrencies has increased significantly and hit $4.3 billion in May 2017. Currently, Bitcoin leads the market share due to its wide coverage and financial stability. Bitcoin (BTC) breached the $2000 mark in May 2017, which means that one Bitcoin was valued at a whopping price of $2000! It can be safely said that Bitcoin remains the safe haven for traders and investors alike. Running second, Ethereum (ETH) was formed due to a new blockchain alliance by Microsoft, Intel, Accenture, and other major tech companies. It is called the Enterprise Alliance. Ethereum gained traction due to its incorporation of digital contracts into the cryptocurrency world. Being called the silver to Bitcoin gold, it has risen in the past years and currently trades at around $380. Why is "Blockchain" Important to Cryptocurrency? The vital reason for the growth and popularity of cryptocurrency is its innovative, secure ecosystem, backed by blockchain technology. The mechanism ruling blockchain technology is simple. Any transaction uploaded in the database is locked and encrypted. These encrypted transactions are uploaded onto the existing ledger which becomes a “block” in the system. A “block” is a public ledger that is shared among all the peers on the network. Once encrypted on the block, the transaction becomes permanent and unalterable. Each new transaction created becomes part of the chain of all encrypted blocks called the “blockchain.” Future Prospect of Cryptocurrency A $10,000 purchase of Bitcoin in 2010 would be worth around $300 million today. Said another way, a mere $100 purchase of Bitcoin in 2010 would be worth a whopping $3 million today. But there is still a lot of hope for insane growth. The past gains in Bitcoin are certainly not over, nor are these kind of gains just limited to the cryptocurrency Bitcoin. There are more than 800 cryptocurrencies in existence today — and a few of them, like Ethereum, Ripple, and Litecoin, will likely see similar growth. By 2030, 15% of all global financial transactions are projected to use Bitcoin or a Bitcoin-like cryptocurrency. What this means to us is that anyone who still thinks Bitcoin is an interesting anomaly has been, and continues to be, dead wrong. Bitcoin developer, Jimmy Song, has compared the cryptocurrency trading volume to major stock exchanges like NASDAQ. While this seems like a far-fetched comparison, the growth in cryptocurrency is predicted to continue its growth exponentially well into the future and therefore, provides a solid investment opportunity. It's a fact that cryptocurrency has revolutionized the way money is portrayed. It's highly probable that digital currencies will integrate into our current systems and do so sooner than later. Armed with this knowledge, it would be prudent to do some serious research on how to get into the crypto game.
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Des Woodruff (aka d-seven)
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We emphasize that no information set forth on this website is an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This website does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this information without advice from your investment professional, who you should expect to determine what is suitable for your particular needs and circumstances. Failure to seek detailed professional, personally-tailored advice prior to making any investment could result in actions contrary to your best interests and loss of capital.
*CFTC RULE 4.41(b)(1)/NFA RULE 2-29 - SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE BEING SHOWN.
NO REPRESENTATION IS BEING MADE THAT ANY PERSON WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.