Emergence and use of cryptocurrencies started with the use of online fantasy games. However, the creation of Bitcoin system by the user under the pseudonym Sakamoto eliminated governments authority and counterfeiting.
This system operates on a decentralized cutting edge blockchain technology in which no country can own, regulate or oversight. This aspect has led to some skeptics to label the technology as a scam, worthless and a fraud.
This criticism arising from co-workers to wall street firms, financial market bigwigs, and analysts, has not affected the recently experienced heavy sell-out. Cryptocurrencies which are digital currencies only existing in electronic form is anticipated by many to be the next generation of world currency.
Blockchain technology, an online ledger that keeps a record for every single Bitcoin transaction, cautions users not to buy cryptocurrencies twice. This ledger is publicly visible and is maintained by a network of miners (users) whose computers execute calculations thereby validating each transaction.
These miners earn a reward when other users buy Bitcoin. Blockchain has proved to simplify the ambiguities for users willing to buy cryptocurrencies. The rapid rise of the Bitcoin in 2017 where it hit an overall value of $300 billion by early December led many to debate on whether cryptocurrencies should be considered as a legitimate financial asset. Security concerns for users willing to buy Bitcoin following a case where hackers stole close to $500 million worth of NEM, a digital token in Japan led to the formation of the R3 consortium.
This consortium was created with the aim to utilize blockchain as a decentralized ledger to track transactions. Cryptocurrency critics anticipate the boom to hit a bubble but this has not hindered users willing to buy cryptocurrencies.
Entrepreneurs who are set to buy Bitcoin insist that its value is proof of a new idea of payment system free from government, credit-card companies or even banks. Investors who buy cryptocurrencies have enjoyed the gains made in 2017 where a single hit above 1,880 percent which translates to $18,236 in under 12 months. Massive price swings have led many investors to buy Bitcoin and other cryptocurrencies.