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A Brief History of Crypto Currency

Cryptocurrencies such as Bitcoin are frequently catching the public eye due to the massive swings in value. That being said digital currency is an ever-growing alternative to the conventional means of commerce we are accustomed to.

Cryptos are now becoming so popular that they pose a serious threat to financial institutions and monetary policy.

It has been more than a decade since Satoshi Nakamoto mined the genesis Bitcoin block and started the digital currency revolution. BTC changed the landscape of world economics by eliminating the need for a middle man during a financial transaction. Rather than a bank or some other centralized institution validating transactions the users of Bitcoin validate transactions in a decentralized manner. Because BTC is digital and decentralized people have the freedom to exchange value without a go-between which leads to more control of the funds and much lower fees. Bitcoin is controlled by owners, not banks.

We all know the U.S. Dollar is the reserve currency for the global economy, so any normal mainstream financial transactions happening at any given time are based on the dollar. This is the reason the U.S. has become a world power and allows the U.S. to impose economic sanctions on other countries or “rogue” nations anytime they step out of line. Cryptocurrency transactions have nothing to do with the US dollar and do not need to be connected to it at all. BTC makes it possible for financiers to participate in the global economy with a way around stringent U.S. economic policies.

Close to 2 billion or more people on Earth don’t have a bank account, and in many countries around the world, businesses still cannot accept credit card payments. For people in the third world and developing, countries Bitcoin gives them the chance to participate in the global internet economy.

Now the commercial market has started to adapt as well with companies like Tesla offering BTC and Ethereum as a way to make purchases through their companies. Some fast-food giants like McDonald’s and Burger King are even looking for crypto transactions through the website and on-site purchases.

Even entire countries have adopted BTC as their official currency. El Salvador was the first country to make that move on June 9th 2021 with the passing of the so-called “Bitcoin Law” which was originally proposed by President Nayib Bukele and passed the nation’s legislative body with a majority vote.

This means that Bitcoin must be accepted by all vendors, shops, markets, stores, restaurants as it now legal tender in El Salvador and can be exchanged for any goods or services.

While Bitcoin started the crypto craze there are plenty of other digital currencies available that may not have the market cap of BTC but can still make crypto traders a profit.

Crypto Proof of Stake Mechanism

Cryptocurrency: The Proof of Stake Mechanism

One of the biggest challenges facing anyone who wants to invest in cryptocurrency is how to choose which one is worth your time and money. Hundreds of digital currencies are available, and new ones emerge almost daily. Many of these altcoins tout themselves as being faster, cheaper, more secure, or more decentralized than competitors. But how do you know which ones have real value? The answer lies in understanding the proof-of-work Mechanism vs. proof-of-stake Mechanism debate. This article will explain the proof of stake and proof of work, why it matters, and other essential things you need to know if you want to invest in cryptocurrency wisely.

What is Proof of Stake?

What is proof of stake? The idea of proof of stake is to replace “proof of work” with a new model for validating transactions. Miners solve complex mathematical problems to confirm transactions and create new blockchain blocks in proof of work. With proof of stake, network validators (“stakers”) are chosen randomly (i.e., by lottery) to confirm transactions and create new blocks. The greater your stake (i.e., the amount of cryptocurrency you own), the greater your chance of being chosen as a validator. It’s important to note that proof of stake does not replace proof of work entirely but acts as a supplement. This means that blocks are validated by both mining and proof of stake. The purpose of proof of stake is to improve network speed. Since mining with proof of stake is cheaper and faster than mining with proof of work, the idea is that validators will be able to create new blocks more quickly.

How Does Proof-of-Stake Work?

The way that a proof-of-stake system works depends on the specific cryptocurrency. On a general level, though, you can think of it as electing a group of representatives who confirm transactions and create new blocks on the blockchain. The elected representatives are the “stakers,” and they are chosen by lottery (or random selection process). The odds of being elected increase with the number of assets a person is staking on the network. Once elected, the stakers confirm transactions and create new blocks for the blockchain. The more often a staker is selected, the greater the person’s overall influence will be on the network. Once a staker’s term is up, there is an election to determine who will take over the position. The system is designed so elected stakers are disincentivized from malicious behavior (i.e., they will lose their jobs if they attempt anything illegal or unethical).

Pros of Proof-of-Stake

The most significant advantage of proof of stake is that it’s far more energy efficient than proof of work. With proof of work, miners have to solve complex mathematical equations to create new blocks and verify transactions. This requires a tremendous amount of energy and computing power. This is problematic for a few reasons. First, a massive amount of energy is used across the entire network. Second, it makes the whole process incredibly expensive. Staking, on the other hand, requires no energy at all. Instead, it simply requires that participants hold a certain amount of the blockchain’s native token. While burning up your computers to generate new blocks might seem a little strange, proof of stake would not exist if it weren’t more efficient and cost-effective than proof of work.

Cons of Proof-of-Stake

The most significant disadvantage of proof of stake is that it’s not as decentralized as proof of work. At any given moment, a cryptocurrency’s network might have thousands or tens of thousands of stakers. With proof of work, on the other hand, there is only one mining group in charge of the entire blockchain. This means that those with the most mining power have the most control over the network. For example, if Bitcoin’s mining group decided to rewrite the blockchain, there would be nothing anyone could do to stop them. In contrast, with proof of stake, thousands of “miners” have some control over the network. If the network’s stakers decided to rewrite the blockchain, there would be nothing anyone could do to stop them.

What is Proof-of-Work (PoW)?

Proof of work is also called mining. The way this works is that there is a network of computers that are used to solve complex math problems. The computer that solves the math problem first is rewarded with cryptocurrency. This system created a fair and democratic process for validating transactions. This system is used in many cryptocurrencies, including bitcoin and Ethereum.

Difference between Proof-of-Stake and Proof-of-Work

As you’ve seen, proof of work and stake are very different. They were created for other purposes and solve very different problems. What’s the difference between proof of stake and proof of work? Proof of work validates transactions and creates new blocks for a blockchain. It does this through a process known as mining. That’s all that proof of work does.

In contrast, proof of stake selects a group of representatives who confirm transactions and create new blocks for the blockchain. It does this through a process known as staking. That’s all that proof of stake does.


Many different cryptocurrencies are available to investors, each with something different. If you want to get involved with crypto but don’t know where to start, your best bet is to research what is promising enough to be worth your time and money. You can learn about the different types of cryptocurrencies, such as their history, their work, and what issues they’re solving. And while there are plenty of other things to look at, one of the most important factors is whether or not a given currency uses proof of work or proof of stake. Proof of work is the system that most cryptocurrencies use now, but proof of stake is quickly becoming the system of choice for many altcoins. If you want to get involved in cryptocurrency, you first need to decide which type of digital currency you want to invest in. And to do that, you’ll first have to learn about the different kinds of cryptocurrencies available and the pros and cons of each one.


Disadvantages of Using Cryptocurrency

Disadvantages of Using Cryptocurrency

Cryptocurrencies are all the rage, with Bitcoin and Ethereum leading the pack. While there are many advantages to using cryptocurrencies, there are also some disadvantages that one should consider before making any decisions. Let’s take a closer look at some of these disadvantages.

1. Volatility

Cryptocurrencies are notoriously volatile, which means their value can fluctuate dramatically in a short period. The prices of Bitcoin and Ethereum can fluctuate rapidly, and these fluctuations are often driven by news and speculation. That means that it can be very difficult to predict the future value of a cryptocurrency which makes them a risky investment, as you could see the value of your coins decrease sharply overnight. For example, in December 2017, the price of Bitcoin reached an all-time high of over $19,000, only to crash back down to around $3,000 a year later. While this volatility can be profitable for investors who time their investments correctly, it can also lead to big losses. For example, someone who bought Bitcoin at the peak in December 2017 and sold it at the bottom in December 2018 would have lost over $16,000. In addition, it can be difficult to convert cryptocurrencies back into fiat currency (traditional currencies like USD or EUR), so you may lose money if you’re not careful. The volatility of Cryptocurrency makes it a risky investment and unsuitable for everyone.

2. Lack of Regulation

Another downside of Cryptocurrency is that it’s largely unregulated. That means no government or financial institution is backing up the value of the coins to help protect investors. This lack of regulation can make them a target for criminal manipulation and fraud and pose a risk to investors. There have been numerous cases of people losing large amounts of money after investing in fraudulent or unsuccessful cryptocurrency projects. In addition, there are very few protections for investors, so if you’re considering investing in Cryptocurrency, you should be prepared to lose all of your money.

However, that is changing as governments worldwide notice Cryptocurrency and its potential implications. For example, in 2018, the US Securities and Exchange Commission (SEC) began to crack down on initial coin offerings (ICOs), a popular way to raise funds for cryptocurrency projects. The SEC has also been scrutinizing cryptocurrency exchanges and has even shut down a few of them. As Cryptocurrency becomes more mainstream, regulation will likely increase. That could lead to increased costs and complexity for businesses operating in the space. Additionally, it could make it more difficult for new projects to get off the ground as they must comply with all the relevant regulations.

3. Limited Use

While Cryptocurrency has gained popularity in recent years, it is still not widely accepted as a form of payment. One of the biggest issues is its limited use. Cryptocurrencies are mostly used for speculative purposes rather than actual transactions. That is because most businesses and individuals are not yet familiar with Cryptocurrency and how it works. Unlike traditional currency, which can is used to purchase goods and services worldwide, Cryptocurrency is only accepted by a handful of businesses. That means most people cannot use it for everyday transactions, limiting its utility. In addition, many countries have not yet legalized Cryptocurrency, which further restricts its use. As a result, Cryptocurrency is still largely confined to the realms of investment and speculation. While this may change in the future, for now, it remains one of the biggest disadvantages of using Cryptocurrency.

4. Environmental Impact

Cryptocurrency mining consumes a lot of energy. The proof-of-work algorithm used by most cryptocurrencies (including Bitcoin) requires energy-intensive computations. According to a report by the University of Cambridge, the Bitcoin network consumed more than 7 gigawatts of electricity in mid-2018, which amounts to 0.21% of the world’s total electricity consumption.

As the demand for Cryptocurrency grows, so does the demand for computational power and electricity. That will likely have a significant environmental impact as Bitcoin mining becomes increasingly carbon-intensive. One study estimates that Bitcoin’s annual carbon footprint is comparable to New Zealand’s.

If Cryptocurrency continues to grow at its current rate, it could eventually have a very noticeable impact on global energy consumption and climate change. Of course, there are also potential solutions to this problem, such as using renewable energy to power cryptocurrency mines. However, it’s important to be aware of the potential environmental impact of Cryptocurrency before investing in it. If you are concerned about the environmental impact of your investments, then Cryptocurrency might not be the right choice for you.

5. Technology Risks

While Cryptocurrency has many potential advantages, there are also several risks associated with its use. One of the biggest risks is technological obsolescence. It’s important to note that cryptocurrencies are built on complex technology constantly evolving. Because Cryptocurrency is based on blockchain technology, it is vulnerable to the same changes and improvements that can render other technologies obsolete. That means there’s always a risk that something could go wrong, and the coins could become worthless overnight. For example, if a new and more efficient blockchain protocol is developed, Cryptocurrency could become worthless overnight.

Additionally, there is always the risk that hackers will find a way to break into the system and steal funds. Suppose the underlying blockchain technology is hacked; it could have a devastating effect on the value of Bitcoin and other cryptocurrencies. While this has not happened yet, it is a very real possibility.

6. Scalability Issues

Scalability issues also limit Cryptocurrency. Cryptocurrency scalability issues have been a concern since Bitcoin was first created. Bitcoin can only handle a maximum of seven transactions per second. Ethereum fares slightly better, with a maximum capacity of 20 transactions per second. In comparison, traditional payment systems such as Visa can handle 24,000 transactions per second. As the demand for Cryptocurrency grows, the lack of scalability will become more and more apparent.

Cryptocurrency scalability issues are caused by the way blockchain works. Blockchain is a distributed ledger system that records all transactions on a decentralized network of computers. The nodes on the network validate and confirm each transaction, which takes time and slows down the process. Block sizes are also limited, restricting the number of transactions processed per second. Cryptocurrency developers are working on solutions to address the scalability problem, but there is no perfect solution.

As a result of these scalability issues, cryptocurrency adoption has been limited to early adopters and enthusiasts. Mainstream adoption will be difficult to achieve until the scalability problem is solved. Cryptocurrency is best suited for small payments or as an investment rather than as a mainstream payment system. As the demand for Cryptocurrency grows, the slow transaction speed could become a major bottleneck.

7. Security

Another risk associated with Cryptocurrency is security. Cryptocurrency exchanges have been hacked in the past, and millions of dollars’ worth of coins has been stolen. Additionally, there is always the risk that individual wallets could be hacked and funds stolen. While these risks are not unique to Cryptocurrency, they are magnified because Cryptocurrency is still a relatively new and untested technology.

8. Government Regulation

Another risk to consider is government regulation. Cryptocurrency is currently in a regulatory grey area in most jurisdictions. That means that governments have not yet decided how to treat Cryptocurrency. In some countries, such as China, Cryptocurrency exchanges have been banned outright. In other countries, such as the United States, the government has taken a hands-off approach. The lack of clarity around regulation is a risk because it adds another layer of uncertainty to an already volatile market.

Government regulation is likely to increase in the future as Cryptocurrency becomes more popular. As governments become more involved, there is a risk of imposing restrictive regulations that could stifle innovation and adoption. For now, Cryptocurrency remains largely unregulated, which is both a risk and an opportunity.


Cryptocurrency is a risky investment but one with potential rewards. Understanding the risks is essential for making informed investment decisions. Moreover, as more businesses start accepting cryptocurrency, the disadvantages will become less and less relevant.

Advantages of Using Cryptocurrency

Advantages of Using Cryptocurrency

A cryptocurrency is an alternative form of payment that allows a faster and a discrete transaction between individuals while using the crypto wallet platform. Transactions are done digitally through encrypted technology known as the blockchain. This form of payment comes with the following benefits.

• Faster transaction speed

Cryptocurrency transactions take a few minutes to complete compared to stock trades and a wire transfer that settles transactions within three working days and at least 24 hours, respectively. The speed of money transfer via cryptocurrency is efficient and reliable. Once the network confirms the block with your marketing, it’s fully settled, and the funds are available.

• Cost-effective mode of transaction

Cryptocurrency offers relatively low transaction costs compared to other financial services since it eliminates the need for third parties, like VISA or PayPal, to verify a transaction. Ideally, cryptocurrency removes the requirement to pay any extra transaction fees. Despite the low transaction cost offered by this system, the price may sometime increase depending on the demand on the blockchain.

• Protection from inflation

Cryptocurrency always has a cap on the total number of coins that will ever be minted. For example, currently, there are only 21 million Bitcoins released globally. So, every time the money supply outperforms the growth in the Bitcoin supply, the price of Bitcoin also increases. And since there is an increase in demand for Bitcoin, its value will increase and eventually maintain with the market, preventing inflation. Other cryptocurrencies also use the exact coping mechanism to hedge against inflation.

• Efficient currency exchange

With the help of a cryptocurrency wallet, one can easily convert their currency into another by trading in cryptocurrency across different wallets which deducts a minimal transaction fee. Moreover, one can purchase cryptocurrency using currencies such as the US dollar, European euro, and British unit of measurement, among others.

• Accessibility

Straightforward access and use of cryptocurrency require a computer or smartphone and an internet connection. Afterwards, you can set up a cryptocurrency wallet more efficiently than opening a traditional financial institution. Throughout the whole process of setting up a wallet, there is neither ID verification nor background or credit check.
Cryptocurrency is so accessible that it allows individuals without bank accounts to access financial services without the struggle of going through a centralized monetary authority. In a nutshell, using cryptocurrency can enable people who don’t use traditional banking services to easily make online transactions or send money to loved ones.

• Security

Cryptocurrency security and privacy are guarded by the blockchain ledger, which relies on different mathematical puzzles which always have impossible to decode. Additionally, the system uses pseudonyms connected to any user with a full private key for a crypto wallet. These features make cryptocurrency of the safest electronic transaction modes. In case of any attack on the cryptocurrency network and an attempt to change the blockchain, one will need sufficient computing power to confirm multiple blocks before the rest of the network can verify the ledger’s accuracy. This is because transactions are secured by the nature of the blockchain system and the distributed network of computers verifying transactions.

• Privacy

With cryptocurrency, one enjoys a high level of privacy since its transactions are pseudonymous, implying that you have an identifier on the blockchain (your wallet address) with no specific information on your personal details. Again, since cryptocurrency provides a way for the non-holders of traditional financial institutions to register with it, one can still maintain a level of privacy.
For instances where someone connects a wallet address with an identity, and the transaction data are publicly exposed, cryptocurrency deploys several ways to mask the transaction and several private coins that are privacy-focused to enhance the confidential nature of cryptocurrency.

• Transparency

All cryptocurrency transactions take place on the publicly distributed blockchain ledger to ensure a high level of transparency. The cryptocurrency tools allow anyone to check transaction data, which includes where, when, and the amount of cryptocurrency one sent from a wallet address. In addition, the system allows anyone to see the amount of crypto stored in a wallet.
This level of transparency reduces the cases of fraudulent transactions since one can easily prove the amount they sent if it was indeed received.

• Decentralization

One of the benefits of cryptocurrencies is their decentralized nature. Typically, many cryptocurrencies are primarily controlled by the developers and those with a good chunk of the coin or by a corporation to develop it before it’s released into the market. This decentralization helps the currency monopoly be free and restrained; hence nobody can dictate the flow and the coin’s worth. Consequently, this ensures the stability of the cash and makes it more secure, unlike fiat currencies which are regulated from a central point by the government.

• Easy transfer of funds

The primary purpose of cryptocurrency is to offer solutions to international and domestic transactions. The transaction processes with crypto are easy and fast since the verification step requires little time to process as there are only some barriers to finishing.

• Diversification

Cryptocurrency allows investors to diversify from traditional financial assets such as stocks and bonds. Even though there is limited past data on the price action of the crypto markets relative to stocks or bonds, so far, the prices appear uncorrelated with other markets making them a good source of portfolio diversification.
Consequently, you can generate more solid returns by bringing together assets with minimal price correlation. If your stock portfolio falls, your crypto asset may rise and vice versa.

• Self-governed and managed

Developers or miners on their hardware solely do cryptocurrency maintenance and management. Therefore, it is the miners’ responsibility to keep transaction records accurate and up-to-date, maintaining the integrity of the cryptocurrency and the decentralized records.


With the migration to the digital world, cryptocurrency offers the best, safest and most decentralized channels to carry transactions at low costs compared to traditional financial institutions. Additionally, while using cryptocurrency as a mode of payment, one enjoys control of their coins and nearly zero risks due to the transparency level at any transaction conducted.



Five Reasons Invest in Crypto is Bad

Cryptocurrency: Is it a Bad Investment? Five Reasons Why It Is

The cryptocurrency market is worth an estimated $800 billion. That’s a lot of money, and investors are being drawn to the cryptocurrency market. However, many risks are associated with investing in cryptocurrencies and blockchain technology and potential threats such as cybercrime or rampant fraud. Although cryptocurrencies offer the promise of being one of the first global currencies to come about thanks to the development of blockchain technology, there are many risks associated with virtual currencies and digital tokens that make them potentially bad investments. Here are five reasons why cryptocurrency may be a bad investment:

1. The market is too risky.

While the crypto world has seen a host of new millionaires, many people have lost substantial amounts of money in cryptocurrency and blockchain technology investments. The risks can be high when you choose to invest in any cryptocurrency or blockchain technology that a company or government doesn’t back. This means that there are a lot of fake cryptocurrencies and blockchain companies, which means that individuals can get ripped off.

The degree of the risk is largely decided by the market and how risky a cryptocurrency or blockchain technology is. For example, the risk of investing in Bitcoin, Ethereum, and other digital currencies is much riskier than investing in a company with a regular stock listing. However, there are still risks associated with companies with a regular stock listing since they could go out of business or cease to exist.

2. Fraud is rampant in the cryptocurrency market.

While most people like the idea of anonymous currency and blockchain technology, there are also many dangers involved with such technologies, such as fraud, the potential for cybercrime, and computer hacking to steal your information from an insecure exchange or wallet can mean that you lose your money. The Crypto world has been associated with many stories of theft and fraud. For example, there was the case of an ICO that raised over $60 million in Etherum coins only to disappear with the money.

There are also many other cases of upstart blockchain companies that were either fraudulent or failed to deliver on their promises. In addition, many online cryptocurrency exchanges have been hacked, which means investors have lost their money. It’s also worth mentioning that criminals have also targeted cryptocurrency investors in trying to steal their money using fake emails, so if you choose to invest in cryptocurrency or blockchain technology, it’s very important that you do your due diligence. Being unregulated makes it very easy for criminals to perpetrate fraud or steal your information.

3. There are many fake cryptocurrency and blockchain projects.

There are many scams in the cryptocurrency world, especially concerning ICOs (Initial Coin Offering) for a new cryptocurrency or blockchain company. That’s because there are a lot of people who view the cryptocurrency market as a way to make quick money. Many of these scams are often perpetrated by individuals or companies with no intention of delivering on their promises.

One of the most popular ways to get people to invest in your cryptocurrency is to create fake news about new blockchain technology or even a new digital currency and then create buzz through social media. This is often done through Twitter, Facebook, and even Youtube, where they may generate fake news, which can then cause people to invest. For instance, one of the most popular scams was the fake news about a Bitcoin hard fork which caused many investors to buy Bitcoin cash. The fake news turned out to be fake, but many people had already bought Bitcoin cash and lost money.

Many fake cryptocurrencies have been created, such as BitcoinDark and BitcoinPlus, which are created to steal the money of unsuspecting investors. The same thing happened with ATC Coin. This highlights just how speculative the crypto world has become and why so many people who invest in cryptocurrencies should know what they’re doing.

4. Crypto exchanges are not regulated.

In the cryptocurrency market, most exchanges are not regulated by any authority or government. This means that you are on your own when investing in cryptocurrency or blockchain technology, and if you get ripped off, there isn’t much you can do. You may get a refund from the company or service you used to purchase cryptocurrency, but if that company has disappeared, you could be out of luck.

Crypto exchanges are not regulated for many reasons. First, most people want to remain anonymous in the crypto world, making it hard for those companies or exchanges to collect much information on a person. The other reason is that the cryptocurrency market is still relatively new, and governments don’t know how to regulate it yet. This makes the crypto world vulnerable to fraud, and many people are taking advantage of this.

Since authorities or governments don’t regulate most digital currency exchanges and blockchain technology companies, they don’t have to worry about following regulations. This means that cryptocurrency exchanges don’t have to worry about things like the Know Your Customer (KYC) rules in place for other financial institutions such as banks.

5. Difficulty in valuing cryptocurrencies

One of the biggest problems with cryptocurrencies is that they are nearly impossible to value. Unlike stocks, bonds, and other types of financial assets, there isn’t a real way to determine the value of cryptocurrencies because they have no intrinsic value other than what people will pay for them. This means that if you buy into a cryptocurrency and it goes to zero, you could lose all of your money.

Every cryptocurrency or blockchain technology has its unique value, which means you can’t compare them to each other because they are all worth different amounts of money. This makes it very hard for investors to determine the right value of a digital currency. In addition, since there is no way for anyone to know for sure what the future value of a cryptocurrency will be, it’s also very difficult to make money through investing in crypto and blockchain technology.

Some cryptocurrencies, such as Bitcoin, have had a lot of media hype surrounding them, which caused many people to buy into the currency. This created a lot of demand for the cryptocurrency and greatly inflated its value. This led to a possible bubble, which has caused many investors in the crypto world to lose their money because the cryptocurrency’s value went down. For example, when Bitcoin was first launched, it was worth a few cents per coin. However, after many more people learned about the currency and began buying it, the value of the digital currency rose. This caused many people to buy Bitcoin, and its value went up to nearly $20,000 per coin in December 2017. Since then, it has dramatically fallen back down to a value near $6,000 for one Bitcoin at the time of publication.


Despite the potential of cryptocurrencies and blockchain technology to change the financial world someday, there are a lot of risks associated with investing in this market. Cryptocurrencies are still very new, mostly unregulated, and face many challenges that could kill them before they can deliver on their promises. In addition, cryptocurrencies and blockchain technology companies often face a lot of hurdles as they try to launch their products or services to final consumers. As a result, many companies have been hacked, some have disappeared, and even more, have been caught up in scandals that have caused investors to lose their money. This means that when people are looking to invest in cryptocurrency or blockchain technology, they need to do their research as much as possible before they invest. The top 5 things you should look out for before investing include scams, fake news, unregulated exchanges and markets, difficulty valuing cryptocurrencies, and difficulty valuing blockchains.





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