Cryptocurrency is one of the most popular digitalized forms of currency that does not depend on banks for performing transactions. It is a peer-to-peer system that is highly used for making payments these days. This is why we have seen growth in the crypto market in the previous years.
According to the term cryptocurrency, it is termed an encrypted form of currency used for transacting digitally.
In short, it is one of the securest forms of digital currency. Just because cryptocurrency is based on a shared ledger known as the blockchain. Blockchain technology is one of the highly secure means of data storage that is publicly shared but one cannot delete or modify the data from it.
These cryptocurrencies use encryption terminology for the verification of the transaction and its processing. This is the reason for the increasing demand for different cryptocurrencies. There are several other facts and figures based on the cryptocurrency or the crypto market.
In this blog will discuss additional facts about the crypto market that you must know. These facts are the important ones that most people aren’t aware of.
Table of Content
- 8 Most Amazing Facts About Crypto Market
- More Than 19,000 Existing Cryptocurrencies
- There are a limited amount of Bitcoins worldwide
- NFTs are not cryptocurrencies
- Cryptocurrencies are banned in some countries
- Cryptocurrencies are volatile
- Blockchain is the key element of cryptocurrency
- Crypto Miners play a major role
- Cryptocurrency is best for E-Commerce Transactions
8 Most Amazing Facts About Crypto Market
There are more than 19,000 existing cryptocurrencies
According to most of the popular research reports, there are more than 19,000 existing cryptocurrencies worldwide operated by the people. Some of these bitcoins are classified as exchange mechanisms. But not all the crypto are mediums of exchange, some of them require a wallet for conversion. Cryptocurrency investing has now become much easier for every person just because of its easy availability. Even you can easily create a new cryptocurrency and also launch it in the crypto market. Even there are some altcoins like USD Coins, XRP, Solana, etc. which require their wallet for exchange transactions.
There are a limited amount of Bitcoins worldwide
Bitcoin is a highly used form of cryptocurrency. You are not aware of the fact that there is only a limited quantity of bitcoins available in the worldwide crypto market. It happens just because of the protocol for the bitcoin network. According to that protocol the bitcoin network can only create 21 million bitcoins not more than that. This is the reason why crypto miners aren’t able to mine more bitcoins. According to research, the crypto miners associated with several cryptocurrency software development companies have only mined 19.5 million bitcoins which means there are still one and a half million bitcoins remaining to be mined.
NFTs are not cryptocurrencies
If you are doing cryptocurrency transactions on a regular basis then you must have also heard about the NFTs (Non-fungible tokens) these tokens are not cryptocurrencies. Instead, NFTs are just tokens that are used as a medium of exchange. NFTs are a virtual form of tokens that represents digital currencies. It is a digitalized virtual form of investment that is launched in the year 2015. These tokens initially have a particular value that keeps on growing. Most people assume that these NFTs are a form of cryptocurrency. It is not a cryptocurrency but just a token that has a definite value.
Also Read: How To Build A Cryptocurrency Wallet App
Cryptocurrencies are banned in some countries
Most people these days have set an investment goal of investing their money in different cryptocurrencies. But you must not be aware of the fact that there are still some countries where Cryptocurrencies are banned. So investing in crypto is next to impossible in such countries. These cryptocurrencies are banned in countries like Turkey, Iraq, Morocco, Nepal, Qatar, Egypt, etc. Practically ban imposed on cryptocurrency is impossible these countries can only shut down the crypto exchanges but there are several other possible solutions by which users are trading in cryptocurrencies.
Cryptocurrencies are volatile
The value of cryptocurrencies is volatile. You must be knowing if you are transacting on crypto regularly. On a particular day, the value of crypto will be less and suddenly it shows huge gains. This is the reason why cryptocurrency is said as the most volatile currency worldwide. That’s why it is always in trend just because the people invested in crypto have faced higher gains after investing a lesser amount. Not only gains but cryptocurrency exchanges might let you face huge losses.
Blockchain is the key element of cryptocurrency
Blockchain technology is the key element on which the crypto is based. Since several blockchain development services companies are working to improvise blockchain technology frequently to make it more secure and reliable. This blockchain technology helps users in secured cryptocurrency exchanges. This blockchain technology acts as a public ledger that keeps all the records of cryptocurrency transactions safe. Most people are unaware that cryptocurrency software are using blockchain technology to function.
Crypto Miners play a major role
Crypto miners play a major role in digging up cryptocurrencies. Even though they require high-performance systems with top-end configurations. These systems are used in order to solve complex mathematical equations. For solving such complex equations these miners are rewarded in the form of cryptocurrencies. Crypto mining can be a most rewarding process but sometimes it has proven the most expensive one for the miners just because it requires a high-end system, a lot of electricity, and many other resources.
Cryptocurrency is best for E-Commerce Transactions
Cryptocurrency is also a mode of payment that can be easily implemented in e-commerce websites. Just because it is one of the securest modes of payment as well as there is no surcharge that the consumers are charged on credit card transactions. It is not only beneficial for the consumers but also for the e-commerce store owners. It’s because of the quick transactions as well as security. Maybe in the future top e-commerce brands will implement crypto on their website or apps as a mode of payment.
Most people worldwide have done bitcoin transactions at a particular point in their life. But even when you have transacted with crypto then also you are not aware of some general facts about crypto. We have provided you with some mind-blowing facts that you must know if you are interested in investing in different types of cryptocurrencies.