Cryptocurrency
It all started with Bitcoin in 2009 backed by the Blockchain, a public ledger accessible to everyone, making transactions hard to reverse and difficult to fake, because information is duplicated and distributed across the entire network of computer systems known as nodes.
Bitcoin is a decentralized (no governing authority) digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. Bitcoin’s creator, Satoshi Nakamoto, originally described the need for “an electronic payment system based on cryptographic proof instead of trust.”
Bitcoins are created through mining. Bitcoin mining is the process of adding new transactions to the Bitcoin Blockchain. Bitcoin mining is a complex job that requires miners to deploy computers in a race to solve mathematical puzzles that verify transactions. To entice miners to keep racing to solve the puzzles and support the overall system, the Bitcoin code rewards miners with new Bitcoins. This is how Bitcoins are created. Bitcoins are considered the gold standard of cryptocurrency. There is a limit of 21,000,000 bitcoins that can be mined. So far up to 2021, we have mined around 18,000,000 bitcoins.
Demand for digital assets has soared globally. People are rapidly shifting towards digital assets to explore opportunities that happen once in a lifetime. Just recently El Salvador became among the first countries to officially classify Bitcoin as a legal tender as congress approved President Nayib Bukele's proposal to embrace the cryptocurrency. President Bukele stated that the legalization of Bitcoin and other digital assets would "Bring financial inclusion, investment, tourism, innovation and economic development for our country". As we move forward, we can expect most of the world's central banks to start creating their digital currencies. In April, The Bank of England announced that they are in the process of setting up a central bank digital currency.
In the past 10 years, Bitcoin has been the fastest-growing asset in the world surpassing NASDAQ 500 reaching a 20,000,000% growth rate. Digital assets offer individual sovereignty, meaning that there are fewer counterparties that could affect its value. Furthermore, digital assets offer portfolio diversification and hedge against inflation. Millions of people around the world have shifted towards the digital side of financial governance mostly due to the factors mentioned above.
Before rushing to get digital assets, you must undertake extensive research regarding digital assets. One of the easiest ways to do that is through Yellow Card Academy, which offers free learning materials from beginner, intermediary to advanced levels. One of the few trusted companies that offer digital asset exchange services in Africa is Yellow Card originating from Atlanta, Georgia. The company has fully committed itself to serve as an exchange for crypto assets and it is now in 10 countries including: Tanzania, South Africa, Botswana, Zambia, Kenya, Cameroon, Nigeria, and Ghana. Yellow Card offers its users a secure wallet where 3 digital assets, Bitcoin, Ethereum, and Tether can be stored, sent, and received.
Financial media eagerly covers each new dramatic high and stomach-churning lows, making Bitcoin an inescapable part of the landscape. While the wild volatility might produce great headlines, it hardly makes Bitcoin the best choice for novice investors or people looking for a stable store of value. From another standpoint, Bitcoin is now valued in the roughly mid 30,000 USD, making it mature and outspoken. If you’re new to digital assets, I suggest you look at other coins like XRP- which today is valued at 0.6USD, Stellar- valued at 0.24 USD, VeChain- valued at 0.072 USD, and many more. Visit coinmarketcap.com to have a look at some of the most exciting digital assets that are on the come up. It is strongly advised that one should undertake vigorous research to understand their way around cryptocurrencies before spending money on digital assets.