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Cryptocurrency Background
For a lot of people, the word cryptocurrency doesn’t mean anything, especially if they are not using the internet often. However, there are fewer and fewer of those people because we can see and hear about cryptocurrencies even in the news. So, what is cryptocurrency and what is the history behind it. Well, if you are interested in finding out those questions, then stick around because we will be covering the entire background of cryptocurrencies from day one when the first one was created. In case you are thinking about investing in these types of online currencies or even starting to mine them, then you should first know all the basic pieces of information and all that can be found right here.
We have done all the hard work and research for you, all there is left for you is to read this article and educate yourself about cryptocurrencies. Even if you don’t want to invest in cryptocurrencies, we recommend that you educate yourself because you will be hearing about them on the internet and news that is for sure.
History
When it comes to cryptocurrencies, the history takes us way back in time, the first foundations of cryptocurrencies date back to 1980’s when the “blinding” algorithm was invented. What this algorithm allowed people to do is make information exchanges between two parties. This is just the foundation of the e currency transfers and people called it the “blinded Money”. There are a lot of people who think they know about cryptocurrencies and they all say that Bitcoin was the first cryptocurrency and they are all wrong. There were several e coins that were used before Bitcoin. We can say that Bitcoin is the first of the modern cryptocurrencies because it first appeared in 2008 and the person behind it is called Satoshi Nakamoto.
The first public release of this coin was early 2009, people all around the world started exchanging and mining that currency. Just one year later, some other cryptocurrencies started appearing such as Litecoin. The first payments were actually possible in the late 2012 and the major merchant was WordPress and Microsoft. Soon after that other popular merchants started taking cryptocurrencies as a legitimate payment method for their services and products.
Miners
Some people only want to invest in these cryptocurrencies such as Bitcoin or Ethereum and they don’t even realize that there is another great way to get into them that is far more affordable. Of course, we are talking about mining, a process that allows people to mine these cryptocurrencies. The reason why it is called mining is that it is essentially the creation process of these currencies. To be able to mine some cryptocurrency, you will have to invest a lot of money into so-called rigs that are essentially a specially designed computer that has high-performance levels. Either way, you will have to invest money into this if you want to make a profit, you can simply buy currencies, or go the slower route and mine them.