It all began with Bitcoin. It is the first decentralized cryptocurrency ever invented in 2009 by a person named Satoshi Nakamoto. His identity is unknown till today. Because Bitcoin was the first cryptocurrency to exist, all digital cryptocurrencies created since then are called Altcoins. Dash, Ethereum, Ripple and hundreds of other coins are Altcoins because they are not Bitcoin.
Bitcoin is completely digital, designed to be ‘self-contained’ for its value, with no need for banks or other middlemen to move or store the money. Bitcoin transactions are irreversible.
Owning a Bitcoin is much like owning physical gold. It possesses value and can be traded as if it were nuggets of gold in your pocket. You can use your Bitcoins to purchase goods and services on and off line, or you can store them and hope that their value increases over the years.
THE FUNDAMENTALS OF CRYPTOCURRENCIES
1. Crypto is the new Internet
2. Government and traditional banking systems are not trusted anymore
3. Crypto has matured
4. Growing number of Bitcoin users
5. Increasing number of Internet users
6. Increasing acceptance balance of Bitcoin as a store value
Cryptocurrencies are easily accesible and available to laymen, just like the Internet was a few decades ago: you can easily find user-friendly wallets, video tutorials, crypto debit cards. Today it is much easier to use Bitcoin than 2 years ago. And it will get easier with time.
Banking crisis, bail-in, madness of Venezuela or India make people look for alternatives.
The longer the history of technology or invention exists, the more people become confident and trusting about it. More and more people are discovering that Bitcoin and many other coins will not falter.
Because there is a limited number of coins, more Bitcoin users mean the rarer the coins - therefore driving the price up. Larger number of users makes Bitcoin more acceptable; becoming more useful as a system.
Half of the earth’s population still have no access to the Internet. The growing number of new Internet users also give way to an increasing number of cryptocurrency users.
Factors #1 and #9 influence attractiveness as a store of value which in turn increases popularity (#2).
7. Blockchain is being implemented in various industries
8. Legal status of cryptocurrencies becomes clear
9. Cryptocurrencies technological development
10.Increasing number of lost coins
11. World is turning to the digital economy
12. Renewable energy sources
Healthcare, logistics, telecom, education - blockchain is not just fintech. The more people trust in Blockchain, the more they trust the currencies based on it.
Some countries have already introduced Bitcoin into their tax and legal systems. More and more people are assured that they are not breaking the law by using cryptocurrencies.
Cryptocurrencies are getting better: bug fixes, new features and much more.
Due to the fact that people sometimes lose their (crypto)wallets, coins become more and more scarce.
Digital money is becoming to be a norm, which increases trust in cryptocurrencies.
Solar panels have become the cheapest source of energy in some countries, and the price of them is falling dramatically. Cheaper energy means more decentralized (crypto)mining, thanks to which the system is more durable.