In the first days of its launch in thousands of bitcoins were used to purchase a pizza. Since that time, the cryptocurrency's meteoric rise to US$65,000 in April 2021, after its heart-stopping drop in mid- by about 70 percent to around US$6,000, boggles the mind of several people - cyptocurrency investors, traders or perhaps the plain curious who missed the boat.

How it all began

Remember that dissatisfaction with the current financial system gave rise to the development of the digital currency. The development of the cryptocurrency is dependant on blockchain technology by Satoshi Nakamoto, a pseudonym apparently employed by a developer or number of developers.

Notwithstanding the numerous opinions predicting the death of cryptocurrency, bitcoin's performance has inspired many other digital currencies, especially in recent years. The success with crowdfunding brought on by the blockchain fever also attracted those out to scam the unsuspecting public and this has arrive at the interest of regulators.

Beyond bitcoin

Bitcoin has inspired the launching of many other digital currencies, There are still more than 1,000 versions of digital coins or tokens. Not all of them are the exact same and their values vary greatly, as do their liquidity.

Coins, altcoins and tokens

It would suffice at this time to state you can find fine distinctions between coins, altcoins and tokens. Altcoins or alternative coins generally describes other compared to the pioneering bitcoin, although altcoins like ethereum, litecoin, ripple, dogecoin and dash are regarded as in the 'main' group of coins, meaning they are traded in more cryptocurrency exchanges.

Coins serve as a currency or store of value whereas tokens offer asset or utility uses, an example being fully a blockchain service for supply chain management to validate and track wine products from winery to the consumer.

A point out note is that tokens or coins with low value offer upside opportunities but do not expect similar meteoric increases like bitcoin. To put it differently, the lesser known tokens might be easy Bitcoin ATM Near Me to get but might be difficult to sell.

Before getting into a cryptocurrency, begin by studying the worthiness proposition and technological considerations viz-a-viz the commercial strategies outlined in the white paper accompanying each initial coin offering or ICO.

For anyone familiar with stocks and shares, it's not unlike initial public offering or IPO. However, IPOs are issued by companies with tangible assets and a small business track record. It is all done in just a regulated environment. On the other hand, an ICO is situated purely on a notion proposed in a white paper by a small business - yet to stay operation and without assets - that's looking for funds to begin up.

Unregulated, so buyers beware

'One cannot regulated what is unknown' probably sums up the specific situation with digital currency. Regulators and regulations are still trying to meet up with cryptocurrencies which are continuously evolving. The golden rule in the crypto space is 'caveat emptor', let the customer beware.

Some countries are keeping an open mind adopting a hands-off policy for cryptocurrencies and blockchain applications, while keeping an eye on outright scams. Yet you will find regulators in other countries more focused on the cons than pros of digital money. Regulators generally realise the requirement to strike a balance and some are looking at existing laws on securities to try to have a handle on the countless flavours of cryptocurrencies globally.