Cryptocurrency and Bitcoins are two words that are becoming more and more popular for the past couple of years. And most people are wondering what exactly cryptocurrency or bitcoin is. What is cryptocurrency? cryptocurrencies are nothing but digital cash that is created using a process called crypto mining, which involves using computational power to solve complicated math problems to generate virtual coins. You may wonder how cryptocurrencies differ from other digital cash. Normal digital cash uses a centralized system for tracking and monitoring the transactions whereas cryptocurrencies use block-chaining, a decentralized public ledger shared across multiple computers(nodes) for storing the transaction updates, which makes it difficult to track the currency users and adds anonymity to the transactions.
Now you may think what is a bitcoin, Bitcoin is one among the thousands of cryptocurrency that are developed using block-chaining algorithms. Bitcoin became more popular than altcoins(common name for cryptocoins other than bitcoin), mainly because it was the first coin to be developed and considered to be the most secure cryptocoin to date.
The cryptocurrency market capitalization industry-wide crossed $200 billion for the first time in history. This is a huge increase from the $40 billion market cap at the beginning of 2017, and this boom would have even shocked Satoshi Nakamoto, who initiated the bitcoin by publishing a paper in 2008, which got implemented as an open source project later in 2009.
Why bitcoins and altcoins are gaining popularity is because initially there was uncertainty about the coins, countries banned and even treated bitcoin activities to be illegal. But now the things have changed the other way. Japan had already started using coins for transactions and countries like Russia and India who were strictly against it has now taken a u-turn in their policies, especially because money laundering can be controlled with the wide use of cryptocoins.
Another reason is the positive predictions by the experts and investors. Big giants in the tech world and finance have already started investing in coins and are predicting the values to cross $500,000 by 2030.
Even with the above points, there are a few drawbacks for cryptocurrency which it needs to overcome to be completely successful.