Bitcoin is the world’s first digital currency and it is expanding in popularity worldwide. Now, traders can trade Bitcoin with AvaTrade as the ideal asset in CFD trades. With their platform – MetaTrader 4 you can trade this rapidly growing currency against the US Dollar 24/7. Bitcoin is highly regarded among currency traders and its volatile nature makes them ideal for CFD trading.
Around 2008, Satoshi Nakamoto founded Bitcoin. At the time, a paper was published through the Cryptography Mailing List. The first Bitcoin software client was released in 2009, and he collaborated with many other developers on the open-source team, careful never to reveal his identity. By 2011, the enigmatic Bitcoin founder had disappeared. His peers understood how valuable this cryptocurrency was, and worked feverishly to develop it to its maximum potential.
By October 2009, the world’s first Bitcoin exchange was established. At the time, $1 was the equivalent of 1,309 Bitcoin. Considering how expensive Bitcoin is today, that was a real steal. Bitcoin traded at a fraction of a penny for quite some time. Things started changing in 2010; as the distribution of Bitcoin increased, the digital currency became inherently more valuable.
Demand increased, reversing the exchange rate accordingly. In early 2010, the currency was gaining momentum, and so the distribution of the Bitcoin started to increase along with its demand. By November of that year 4 million Bitcoins had been ‘mined’. And so, the rise of the Bitcoin began…
How Bitcoin Became So Popular
Bitcoin was the first digital currency to be created. It is also the most respected, capitalised and traded cryptocurrency in the world. Bitcoin trading is booming, and a big reason for this is the volatility of this cryptocurrency.
Currency trading allows for maximum yield when it is volatile – lots of ups and downs. This is precisely the reason global traders enjoy trading Bitcoin. Plenty of profitable opportunities are available when markets are volatile, and Bitcoin ranks highly with currency traders.
The media plays a big part in the volatility of Bitcoin. Whenever a breaking story surfaces, Bitcoin volatility increases, and traders cash in. History has shown that Bitcoin traders and speculators routinely push this digital currency to the forefront of CFD trading.
It is increasingly being used as the preferred payment option for merchants, money transfers and trading purposes. More traders are turning to Bitcoin trading than ever before, and that is why this cryptocurrency is inherently valuable. It is a high demand financial trading instrument, despite no association with governments or central banks.
Bitcoins are mined with powerful computer hardware and software. A maximum of 21 million Bitcoin will be available, after which no further bitcoins will be produced. The algorithm which governs the production of Bitcoin limits the quantity that will be produced, and the rate at which they will be produced. It is a finite commodity – there is a fixed amount, and that ensures that greater demand will always prop up the price. In this way, it is similar to other finite commodities such as crude oil, silver, or gold.
Ethereum is proving to be one of the most favorable technology investments of all time. It was created in 2015 and since then has grown by over 1000%. To better understand what it is, Ethereum is an open source network, much more than just a digital currency. Therefore, when you purchase Ethereum you are investing in the network, and placing money into a unique transformational platform, with many of its greatest applications still to come.
The digital coin of Ethereum, known as “ether”, could be speeding up the decentralisation of the world economy, and has the potential to influence many other industries. Ethereum is backed by a variety of Fortune 500 companies, who met in 2016 to discuss and join forces on developing Ethereum’s network technology. The Ether trading coin can be volatile, which can serve as an asset for traders.
Ethereum Classic is the original version of the Ethereum blockchain from which the newer version was created. The newer version adopted the name Ethereum. The blockchains are not compatible, and updates on one will not affect the other. These changes led the way for the creation of the new crypto coin with a different name, leger, price and market cap.
What is Ethereum (ETH)
Ethereum was created and introduced to the world in 2013 by Vitalik Buterin, and went live in July 2015. Developers were looking for a way to differentiate from the Bitcoin currency, and make it to be exclusive with properties stand out in a market of its own.
They developed a new approach with a new platform and a more common script language. Their software allows customers to run any programme, which makes the Ethereum blockchain process and applications much more efficient than before. With Ethereum, developers can build a new type of software called “decentralised application”. This codes technology is not controlled by any individual or central system.
Ethereum Price and Market Factors
It has been noted that Ethereum can be far more than a digital asset. Its value is in the powerful blockchain programming language called Solidity. Its goal is to be something totally different from all other coins. With its increased application, there is a rise in demand by developers for “Ether”.
The price of Ethereum has soared recently and has been reaching all-time highs. Bitcoin has also been surging, and when that happens it does boost investors desire for other cryptocurrencies where gains can be acquired. Since Ethereum and Bitcoin are not competing, both can benefit when one rises.
Random events can happen to affect the ether price rise or fall, such as the flash crash of Ethereum’s value overall, which took place in June 2017. The Ethereum news and crash happened within a very short span of time, literally seconds after a major sell off prompted other traders to liquidate their digital currency. However, in that situation within seconds computer algorithms were buying again and the price was recovering.
As you can see the volatility of the digital currencies alters prices within second. The general public and investors all had the same questions when this happened as to how the rebound can take place and its timeline. Any strong value increase can eventually lead to a price correction. As with the cryptocurrency market or any market in general, the momentum can slow down at some point. Recently introduced altcoin named EOS was named as the biggest potential competitor for Ethereum.
Thirty big banks, tech giants, and other organizations including J.P. Morgan Chase, Microsoft, and Intel are uniting to build business ready versions of the software behind Ethereum. Its ability to record and execute transactions without the need of a middleman is making this blockchain technology more popular amongst businesses.
What is Ripple
The Ripple Cryptocurrency is an open payment system in beta. Its goal is to allow people to break free from financial institutions like banks, credit card companies, and other networks that enforce fees and foster delays. As per market size and capital, Ripple is the third-largest cryptocurrency, sitting just behind Bitcoin and Ethereum.
The Ripple network now has billions of dollars’ worth of cryptocurrency on account. It was built as a digital payments network for real-time financial transactions, and is also the core owner of Ripple XRP, the digital coin that increased its value 40 times in 2017 alone.
To avoid confusion, the network is referred to as Ripple, and the Ripple coin as XPR – Ripples. The frequency of releasing new coins into the system influences the price and rate. In total, there are 100 billion XRPs in existence, and Ripple owns approximately 60 percent of them. If you take all this valuation into account, it would be worth more than several US tech startups put together. XRP is majority owned and tied to a single company.
Ripple is constantly investing in its network and growing partnerships with global firms and financial institutions. Some of the banks that have signed on to use Ripple include BBVA, SEB, Start One Credit Union, and Cambridge Global Payments. As the market and network continues to grow, so does the potential of Ripple’s value.
Based on the Ripple website, their concept is a “basic infrastructure technology”.
The idea of Ripple was developed in 2004 by Ryan Fugger from Vancouver, Canada. The currency was developed during the following ten years until finally, in 2014, various large banks started using Ripple and the related payment networks. The Ripple system offers numerous advantages to banks, like distributed ledgers, price and security.
The company behind Ripple is “OpenCoin”. There are two separate entities that make up Ripple:
✓ The payment network – Ripple
✓ The actual currency on the payment network – XRP Ripple
Building on the decentralised digital system, Ripple’s concept is to work with different payment systems worldwide. Ripple allows businesses to perform transactions within 3-5 seconds. The payments are processed and received automatically and are irreversible. Various financial institutions worldwide have established partnerships and started using the Ripple system.
In many ways, Bitcoin and Ripple are similar. Like Bitcoin, the Ripple coin has a limited number of units that can be mined. Both can be transferred from peer to peer, and both have digital security keys to prevent face transactions of coins. Payment information on the ledger is private, however transaction information is public.
The people behind Ripple insist that they provide faster transaction times than Bitcoin, because there is no waiting on block confirmation and transactions transmit through their network very rapidly.
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