In a fast pace financial industry, Bitcoin and all the cryptocurrency family can be considered a real phenomenon and become not only an object of attention in the Internet environment, among professionals, investors, business tycoons and all walks of life are discussing this phenomenon because this is not just a progress, but a real leap in the financial industry.
Bitcoin the New Currency Evolution
Bitcoin was discovered in 2008 in the middle of one of the worst financial crises in history. Financial crises arise due to irresponsible practices within the United States housing market that shook US economy and rippled through Europe (European debt crisis). Inevitable collapse of the lending scheme and several large financial institutions found their assets devalued. Chain of risky lending, loans based on the high default rate of subprime mortgages (essentially high-risk loans) were bundled and sold off to other financial institutions that led to major collapse of the mortgage market in 2008.
The message many received from this financial crisis was loud and clear. You don’t control your money, and the people who don’t care about you. The Bitcoin whitepaper was a response to this message. Trouble with traditional money and the major problem of double spending led Satoshi Nakamoto to outline mathematical and computational basis for Bitcoin-peer-to-peer electronic cash system.
In the words of Satoshi, with the possibility of reversal, the need for trust spreads. In establishing Bitcoin, Nakamoto crafted the elegant computer protocol known as blockchain. The blockchain, as the whitepaper explains, is a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions. Using a cryptographically sound method of encryption enables this ledger of chronological order of transactions to be publicly visible and verifiable without providing the private, protected information behind the transactions to anyone beyond the individuals involved.
When transacting on the blockchain, say sending one Bitcoin to a recipient, each party knows the addresses of all parties involved, the sender and the recipient but only the individuals know their private keys, the identifier needed to access the accounts.
Bitcoin becomes one of the fastest growing stores of wealth in modern history.
- An entire ecosystem has developed that allow users to buy, sell, monitor, and store Bitcoin. With the Bitcoin’s underlying protocol- blockchain paved the growth of other apps, such as browsers, social networks, and philanthropic tools
- More user-friendly services have been created, allowing more seamless entry into the world of cryptocurrency. Anyone with access to a smartphone or computer can create a wallet with organizations such as Coin base, one of the largest digital asset wallet providers in the world
- Bitcoin as a cryptocurrency and technology and the simplicity of its code, and resistance to change serves as an inspiration and the foundation of many of the blockchain-based technologies and applications emerging on the market.
Bitcoin remains the king of cryptocurrency and the standard against which all other digital currencies are traded today. The cryptocurrency movement has gained enough momentum to reach a critical mass of adoption. Its popularity, flexibility, and security contribute to its value, furthering its adoption by an ever-growing population of investors, traders, users, and applications in a cycle which regularly results in Bitcoin’s price reaching new all-time highs. Though like any investment, there is a certain degree of speculation about when the best time to buy or sell.
Ethereum Another Rising Star in Cryptocurrency
A Russian cryptocurrency researcher and programmer Vitalik Buterin in 2013 brought a significant leap to cryptocurrency. He outlined his plans for the Ethereum Network. In his proposal, “A Next-Generation Smart Contract and Decentralized Application Platform,”. After Satoshi Nakamoto put into production the very first blockchain protocol Bitcoin, it continues to inspire hundreds of future cryptocurrencies. Shortly after the advent of Bitcoin, as with all new technologies, iterations began to develop
Ethereum is a custom blockchain meant to carry out smart contracts software protocols designed to live in distributed networks. Outlines several different applications of blockchain, from Bitcoin-like digital currencies to having digital assets being directly controlled by a piece of code implementing arbitrary rules known as smart contracts.
Smart Contract is the programming language of Ethereum. Using this powerful and high-level language developers can create and implement their own smart contracts and through the Ethereum virtual machine developers can use solidity to write their own blockchain-based applications
While the Bitcoin community focused on developing the most efficient and purest cryptocurrency that performs as a means of payment processing Ethereum Foundation took a different approach with their network and its native token.The concept of a token sale predates Ether the development of solidity and the ability to create custom tokens on the Ethereum network and allowed many emerging blockchain-based organizations to issue their own digital assets.
- The concept of a token sale predates Ether the development of solidity and the ability to create custom tokens on the Ethereum network and allowed many emerging blockchain-based organizations to issue their own digital assets.
- Users can program smart contracts on the blockchain. These smart contracts, and the flexibility of the solidity programming language make developing on the blockchain accessible to a wide range of organizations.
- Within 2 weeks of its initial offering Ether cryptocurrency was considered as the 7th within 2 weeks of its initial offering the most valuable digital asset network, surpassing the established Dogecoin and among others.
- Ethereum network made tokens available for public sale, thus companies effectively crowd source their investment funding coupled with growing public interest in blockchain-based technology that has resulted in several initial coin offerings.
- Coin offerings were made possible because of the Ethereum Network. These tokens all comply with a standard set by the Ethereum Foundation, called ERC20, which sets up guidelines newly created tokens must follow.
Ethereum foundation has established itself as the go-to network for emerging blockchain technology and a leader in the adoption of cryptocurrencies and the tokenization of decentralized businesses and organizations. As cryptocurrency and blockchain adoption continues to grow, Ethereum foundation has positioned itself and ether well to be at the center of this technological revolution.
Here at Camuso CPA PLLC, we do have the ability to offer services to our clients. If you are interested to know more about this investment and how this might benefit your business, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answer any questions you have