A cryptocurrency is a form of digital asset. They are created, issued, managed and transferred electronically. A Crypto uses cryptography to secure proof of transactions. Cryptocurrencies are decentralized units, which means that they are not controlled by a central authority like central banks or governments. To enjoy decentralization, they run across a network of computers.
It has that logic of Forex, where coins are bought and sold same as fiat currencies. They are traded across the globe. The number of cryptocurrencies is raised rapidly in the recent years- it is estimated
more than 1,500 at the moment. Many of them can only be generated from major cryptocurrencies such as Bitcoin or Ethereum. Others can use a blockchain company’s services or mine it- even though
this is a process that takes time, energy, technical knowhow and a lot of computing power.
Creator/ Owner: Satoshi Nakamoto
Market Cap Size (7/19): $188,077,928,362
USD Rank: 1
About Bitcoin is a network that allows a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.
Creator/ Owner: Vitalik Buterin, Gavin Wood, Joseph Lubin
Market Cap Size (7/19): $23,811,851,396 USD
About Ether is powered by the Ethereum Blockchain. Ether is the native Cryptocurrency however it is classed as digital money.
XRP Ripple (XRP)
Creator/ Owner: Arthur Britto, David Schwartz, Ryan Fugger (Ripple Labs)
Market Cap Size (7/19): $13,725,730,593 USD
About XRP is the cryptocurrency which fuel the payment network (Ripple Net). Ripple wasn’t invented to replace fiat currency.
In few words, the cryptocurrency volatility is explained by the economic laws of demand and supply. So, if there is high demand for an asset with an unchanged supply, the price rises. If there is more supply than demand for an asset, the price drops. These factors are broken down into:
- Internal factors
- External factors
Number of Cryptocurrency Traders
Crossed Influence of Different Crypto Prices
Technical Updates on Crypto software
Mass Media & Global Economic News
Trade Market Integration
Future Blockchain Collaborations