“Predicting the future isn’t magic, its artificial intelligence” – Dave Waters. This quote shows that AI is paving its way towards characterizing every aspect of the human race. Economists worldwide were speculating over the job indices, market infrastructure, and growth based on the future valuations. Also, investors were pinning their hopes on the dot-com companies (the Year 1995-2000). At the same time, emergence of cryptocurrency created a stir in the world’s economical blueprint (NASDAQ). This erupted as a volcano, hiking the Composite Stock Market Index to a whopping 400%.
One can conform the invention of the computer (Digital revolution) to the existence and interpretation of Artificial Intelligence since 1940s. Milton Friedman, economist and Nobel laureate, predicted the future of reliable e-cash system way back in 1999. In 2009, Nakamoto Satoshi (still unknown if it’s one person or a group) created Bitcoin, a Peer-to-Peer Electronic Cash System. Know what is digital currency and certain facts related to it.
Digital Currencies and its Modus operandi
In 2015, CPMI (Committee of Payments and Market Infrastructure) analyzed the characteristics displayed of Bitcoin (the first lot of cryptocurrencies).
So, what is a cryptocurrency (digital currency) and what is its use?
- A general use of digital currencies is as a means of payment.
- No central authority regulates them. The distribution channels are primarily non-banking sector.
- The mode of transfer is an inbuilt distributed digital ledger (also known as Distributed Ledger Technology or DLT).
Facts about Cryptocurrency
- The market valuation of Bitcoin and other cryptocurrency forms plunged to a staggering $414 Billion (till February 2018).
- Bitcoin (BTC), the first-ever launched cryptocurrency, currently captures 35% of the digital currency market share. Bitcoin valuation fell within the period of 2014-2016. However, it resurrected as a stronger currency by early 2017.
- Over 300 versions of cryptocurrencies are available in the market today.
- Coinmarketcap.com contains all the public ledger details, providing readers with all the usable data. Available data includes information (in USD) on cryptocurrency exchanges, currency values (high, low, & close), market capitalization, and trading volumes.
- Another forum to decipher trading and general information on Bitcoins is bitcointalk.org.
- To make profits, the candidate must adhere to the ‘Peak’ data values (a 7-day rolling average). This value must be greater than or equivalent to 50% of the 30-day prior least value margin.
- A ‘dead’ or ‘abandoned’ cryptocurrency can regain its value in due course. This phenomenon is dormant in other forms of currencies.
- Cryptocurrencies are based on a blockchain ‘permission less’ technology system. It has its candidates operating as A. Bookkeepers or “Miners” and B. Candidates transacting the currency or “Users”.
- A set of software source codes help execute the entire currency maintenance and exchange system.
- Recently Starbucks confirmed that it will assist in synchronizing digital consumer applications in retail outlets. As on 6th August 2018, Starbucks revealed about its association with Bakkt, another cryptocurrency company, for the purpose. This will help interchange Bitcoin or another digital currency into the permissible forms of currency denominations.
Given the current quandary of the payment systems, cryptocurrency comes as a ray of hope. However, one must follow the protocols with utmost attention and knowledge to avoid any jeopardy.
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