In 2008, the world witnessed banks faltering, businesses collapsing and many were in financial predicaments as the whole world went through a global economic crisis. During this crash, financial institutions across the globe had to be bailed out by their governments as a result it became clear that the global financial system was fragile and flawed. Another issue at that time was a deep dissatisfaction with traditional fiat currencies.
In August 2008, a domain with the name bitcoin.org was registered online, and on October 31st, 2008, cryptocurrencies came to the fore with a whitepaper published, which introduced Bitcoin to the world. This whitepaper sketched the framework for a future payment system without having the requirement for the centrality of traditional banking, nor did it need a collective trust in governments and traditional institutions. The paper was by an anonymous person named Satoshi Nakamoto.
Cryptocurrencies have a lot of benefits over traditional fiat. They remove the need for central banks from managing money to supplying finances. The blockchain system itself is a decentralized processing and digital ledger system which makes it secure, in comparison to traditional payment systems. And lastly, long-term investment as a store of value to secure capital value against another global financial crisis.
After the success of Bitcoin, there have been thousands of others. Though each one declares to offer the same (or better) financial freedom that Bitcoin created, each one attempts to cater to a specific aspect. The overall purpose is to leverage blockchain technology and revolutionize modern finance, health, energy, data storage, privacy & security, machine learning, payments, social networks, supply & logistics, and content ownership.
Different Cryptos, Different Personalities
While more or less working on the same principle, cryptos have many things in common. The differences are in the economics and how and what they intend to target to resolve long standing issues. Like their differences, they have different creators and they have influenced cryptocurrencies in different ways and tactics.
Bitcoin is a mystery and a piece of financial beauty. Just like its creation that suddenly popped up, the man behind the revolution is just the same, coming seemingly out of nowhere and disappearing, leaving just the legacy and infrastructure behind. Though there have been many attempts and numerous speculations on Nakamoto’s true identity, nobody knows who he is. A he or a she, or even a group, nothing is known about Nakamoto. Rather than being a figurehead, Nakamoto decided to walk away silently. It is this very mystery that has captured the attention of many, and in a complete 180 degree twist, Bitcoin has actually benefited from it. No authority or leadership is at the core of what Bitcoin is, and that has driven people to accept it.
Ethereum is considered the next iteration of how a cryptocurrency and its blockchain can benefit the world. Created by Vitalik Buterin, Ethereum is more than just a cryptocurrency, but a complete ecosystem that uses the power of smart contracts to create complex blockchain systems and today’s DeFi revolution owes it to that. The man is the polar opposite of what Nakamoto is. Vitalik is extremely adaptive to his public identity and takes an active role in the operations of the ecosystem. A genius on his own terms, what he says has a large impact on the Ethereum network.
Then, there is Charles Hoskinson. Initially from the founding team behind Ethereum, he worked closely with Vitalik in the early days, but a difference of opinion led to his departure. A man of science and maths, he went on to create Cardano, a rival to Ethereum. Unlike Buterin, Hoskinson takes a very careful approach towards steering Cardano and its ADA token. Cardano is considered the first scientifically peer-reviewed blockchain system and each phase is carefully tested along different mathematical and scientific principles being released. Though not as large a personality as Buterin or Nakamoto, he has his own influence on Cardano.
Benefits of Crypto
There are several benefits of cryptocurrencies which is evident from the rising interest by the public and governments, especially the wealth creation. Some of the vast array of benefits include hedging against inflation, faster money transfer, utility, and profitability.
While in their roots, all cryptocurrencies are similar, how they broach the subject is different. Bitcoin, for example, leads the pack and its deflationary nature makes it an extremely viable store of value. Ethereum, on the other hand, has an unlimited supply and doesn’t rely on deflation for price increase, but rather the usability it offers.
Each figure of cryptocurrencies has their own method of influencing it. Each approach is vastly diverging from the other, but in the end, they do what they want to, namely drive the adoption and use of the respective digital asset.
Once considered a fad or a fashion, the crux of the matter is that cryptocurrencies are here to stay. For far too long money has been in the hands of the elite and few. Cryptocurrencies give financial power back to the people and as long as there are people, cryptocurrencies will grow and exist, in one form or another.
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About CoinBurp
CoinBurp is the cryptocurrency platform partner for the $BURP ecosystem and suite of DeFi tools. The tokens are not issued or controlled by CoinBurp.
Important Information
Cryptocurrencies and crypto tokens are generally not regulated and investors do not have access to recourse or compensation schemes such as, for example, in the UK, the Financial Ombudsman Service or the Financial Services Compensation Scheme. Investing in cryptocurrencies and purchasing crypto tokens can be high risk and investors should carefully evaluate their appetite for risk and their understanding of trading cryptocurrencies prior to entering into a transaction.
