Things You Should Know About Cryptocurrencies

Last updated on April 5th, 2024 at 11:22 am

Cryptocurrencies have become the latest technology to get the masses madly excited. Since they rose to prominence in the early to mid 2010’s, many adventurous people have seen investing in cryptocurrencies as their ticket to the big-time. It became, for a short while, like a virtual gold-rush, where the technologically adept (and even those who weren’t) flocked to get their hands on as many mined pieces of the digital asset as they could afford. This was because the cryptocurrencies were prone to erratic jumps in inflation, which led a lot of people in the know to be able to buy in when the prices were low and sell when they were much higher. Nowadays though, the inflation rate has slowed down considerably, with Bitcoin’s yearly inflation rate now at only 1.77%.

Cryptocurrencies can still be a good investment, though, for people who want to be at the forefront of technological advancement and get a head-start, as society begins to shift more towards a virtual currency future.

Here, then, is a quick look at some things you should know about the world of cryptocurrencies.

All Hail Bitcoin

Bitcoin is definitely the most popular cryptocurrency for people to invest in, and the most well-known, period.  The history of Bitcoin is shrouded in mystery, and the inventor is an assumed pseudonym, who goes by the name of Satoshi Nakamoto, though no one has truly been able to find out who this actually is. In true ‘I am Spartacus’ style, many people have claimed to be Nakamoto, but none have been able to sufficiently prove themselves to be the genius inventor.

The first inkling of activity related to Bitcoin was back in August 2008, when the domain name bitcoin.org was registered. It’s no coincidence that at the time when the idea of Bitcoin and cryptocurrencies first started, was when the true damage of the financial crash of 2008 began to seep out into the world. The idea was to start a currency that would be independent of the banks and completely decentralized, which means that there is no single administrator, and this allows the process to be peer-to-peer and user-to-user.

The first Bitcoin purchase came shortly after, in 2010.  The purchase was actually (believe it or not)  for two Papa John’s pizzas, which were valued at $25. They were delivered for 10,000 bitcoins, which made the exchange rate back then of about four bitcoins per penny. To show how crazy the inflation got though, that same amount of bitcoin today would be worth around $350 million. That’s some expensive pizza.

What About Others?

As Bitcoin has become such a giant in the technological industry, there are now many copycats that have started up their own cryptocurrencies to try and get their share of those big bucks. In fact, there’s now reportedly over 4,500 different cryptocurrencies, which is a crazy amount. Yet, the good thing is, it allows you to choose one that you think will be best for you. Some of the most popular (excluding Bitcoin) are Chainlink, Dogecoin, Stellar, Cardano, XRP, Bitcoin Cash, Binance Coin, and Ethereum.

When you’ve made your choice, make sure to read our article about us pitting two great cryptocurrency banks head to head, Kraken Vs. Coinbase, so you can get to know them better, and see which one you think is the best fit for what you want.

What Can I Actually Use It For?

In the modern-day, Bitcoin and cryptocurrencies are becoming more and more embedded into the mainstream, and this has allowed further development of lots more uses for them. No longer are they solely used by stereotypical basement dwellers, who spend all day surfing the dark web, and use them for their illicit means. As a result of internet shopping becoming a large percentage of people’s favorite way to shop, Bitcoin has found itself being accepted by a rising number of gigantic businesses.

For example, the Bitcoin currency can now be used to purchase anything, from electronics to toiletries, which are on the Amazon website. This is through a third-party service called Purse, which allows you to order your goods through them when you sign-up, and will offer a minimum of five percent off the listed price. Another place that allows bitcoins to be used to purchase goods is the website for Overstock, as they have partnered with Coinbase, which is another Bitcoin platform. Overstock is a massive online retailer that sells primarily furniture, and is a great port of call if you’re looking to refurnish your house. For the gambling fans amongst you, you can even now use Bitcoin at a whole range of online casinos.

Websites like Vegas Slots Online, have cornered the market in bringing you a complete list of their best reviewed and tested online casinos that allow Bitcoin use. They even issue detailed guides, that teach you everything you need to know to safely use the cryptocurrency for gambling online, so you can find the best bitcoin casino for you. If that wasn’t enough, they have loads of offers and free-spin deals, so you know you’re getting the most for your bitcoins.