If you spend a lot of time in the internet or you are interested in news from the IT world, you surely have heard about the cryptocurrencies.
It is a more and more popular subject not only among the informatics, but also in the media. Simply speaking, it is a virtual currency which do not possess a central bank and is scattered throughout the p2p web. This currency cannot be falsified and a number of coins is predetermined to 21 million. So called “miners” play an important role in this system. They give access to their computing power to calculate the security of this currency’s web. Thanks to this, it is possible to transfer Bitcoins. Bitcoin was created in 2009 and it started in the mtgox stock exchange with a very low price. At first, you could have bought a few hundred thousand Bitcoins with a low contribution.
A mysterious Japanese under the pseudonym of Satoshi Nakamoto, whose identity is still not known, was a creator of this idea. Bitcoin grew over the years and by the end of December its price oscillated around 1200$. People who have invested in Bitcoin have made the best deal of their lives. The world was fascinated by Bitcoin. From a geek curiosity, it transformed into a serious business where real money is at stake. But bitcoin is not the only cryptocurrency there is. Dozens of others were made because of Bitcoins’ success. They also became pretty popular. For example there is the Dogecoin currency which was supposed to be a joke and in the day of its premiere nobody treated it seriously. This currency is based on a popular, internet meme called Doge which was extremely popular in the internet and is known in Poland as Pieseł.
Just as Bitcoin, dogecoin transformed from a joke into a real business and although this currency has been made for laughs, the money which is behind it is no joke at all. It was created on the base of Litecoin (a modified version of Bitcoin) and its current value is 0.0011$. All Dogecoin market expanded from 10 milion dollars to 70 million dollars in just two weeks. Then, it decreased back to 50 million. It was caused by the charity organized by the internet users. Its purpose was to help the Jamaican Bobsleighers to go to Olympic Games in Sochi. They could not do it themselves because of the lack of money. The charity ended in tremendous success. It raised 30 000 American dollars in Dogecoins which have been then transferred into a real money.
This cryptocurrency made 400 % profit. Dogecoin is at the very beginning of the path that bitcoin had to walk. Despite that, the cryptocurrency created in December has earned more than Bitcoin after the same time. The stock exchanges where you can buy and sell Dogecoins for American dollars have already been built. It surpassed Bitcoin a long time ago in a number of daily transactions. All this shows the strength of this cryptocurrency and how fast this market grows and draws new investors, such as Ron Paul who is a famous American investor and has his own cryptocurrency called RonPaulCoin in which he believes. So called cryptocurrency is an undeniable phenomenon. Since the start of Bitcoin, around 200 new cryptocurrencies have been made and the number is constantly growing. Cryptocurrencies are a paradise for all kinds of speculators who invest in them. A while ago, a new trend of, so called, “pumping” a cryptocurrency has appeared. It is about buying a particular cryptocurrency cheaply increasing the value and then selling it with a profit which often equals 100% or even 200%.
To summarize, the market of cryptocurrencies is yet barely crawling and it already is spoken of a lot in media. Some say that it is an ordinary example of a speculative bubble, others invest and strongly believe in cryptocurrencies and their bright future. In my opinion, the truth lies somewhere in the middle.