Are cryptocurrency and bitcoin, the blockchain, discontiguous faces of the same coin?
The main aim of an investor is to get the maximum amount of returns and change this return into profit. As the returns include the taxes to be covered, so his aim is always to increase the return so that eventually his profit increases. The taxes are usually implied by central authorities and governments thereby decreasing the total holdings of the investor. Some people do not like this and always think of having a non-central authority having no control over their belongings. This thought is the main principle behind the invention of decentralized platforms in the form of cryptocurrencies. If you are a newbie and interested in trading you may also use a reliable trading platform, there are no withdrawal or Registration fees, so that means your money is yours. All accounts are secure and verified so that things always stay safe.
The concept that was developed a decade earlier is ruling the present world and as a result, many people are keenly joining the platform.in this article, we are going to discuss the close relationship between derivatives of decentralized technologies aka cryptocurrencies, blockchain, and eventually bitcoin. So, let us start the journey!
- Understanding crypto
Cryptocurrencies or simply crypto is an economic, digital asset that has some monetary value associated with them and this can be used digitally for performing economic transactions and other monetary investments. The first thought for developing crypto came into existence in the year 2009 when a whitepaper released by a misnomer named Satoshi Nakamoto contained the term decentralized currencies. The major aim behind the development of cryptocurrencies is the development of alternative payment techniques to fiat currencies. At first, people did not believe in the concept of digital money as for them it was an imaginary item and there is no future for the same. But, as soon as technology advanced, the interest of people increased in this concept. As a result, today millions and billions of people are actively using the services of decentralized currencies and now these are not just related to investment and payment services. Crypto has emerged as the biggest trading platform and the prices of assets on this platform are skyrocketing. Crypto is not like a one-man army as two important concepts backed this concept of cryptocurrencies that is explained in the next paras.
- Blockchain
Blockchain can be regarded as the root of this big tree of a decentralized platform. The white paper containing the concept of decentralized currency mentions protocols for setting up a platform for backing all the soft processes of crypto. This platform was none other than a blockchain and is the most important portion of the entire crypto chain. As the name suggests, the platform blockchain has a combination of blocks of information in the form of codes and algorithms. These codes and algorithms are responsible for the smooth functioning of the decentralized platform and the existence of coins is also dependent on the same. The miners mine crypto coins out of these complex codes and carry on with the work of cryptocurrencies.
- Bitcoin
The white paper involved the establishment of the first cryptocurrency by name of Bitcoin. Bitcoin was the sole cryptocurrency a decade earlier and as a result, its cost increased as soon as people got associated with the platform. Presently, bitcoin needs no introduction and is used for most of the transactions happening online. There is a close relationship between the same not because these were mentioned in the same paper but due to the interconnection of technologies and usage. We can say that these are the faces of the same coin. As technologies are advancing day by day and new cryptocurrencies are available in the digital market, still, the principal currencies and technology will remain the same. Bitcoin is part of cryptocurrencies which itself is a derivative of a bigger network named blockchain.
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