Cryptocurrency is at the forefront of today’s technology and it serves as a decentralized way to make virtual or digital transactions. One popular type of virtual payment is Bitcoin. Bitcoin has proven to be the trendsetter in this digital currency world as it has inspired the creation of other forms of currency. Below you’ll find information on different types of cryptocurrency such as Bitcoin, Litecoin, Dash, and Ripple.
Bitcoin – Known as the original cryptocurrency, Bitcoin was created in 2009 by an individual under the pseudonym Satoshi Nakamoto. Bitcoin works in tandem with blockchain technology to make transparent transactions that are “peer-to-peer.” Everyone is able to see Bitcoin transactions but only the owner of the coin can decrypt it. Transactions occur all over the world anonymously.
Litecoin- Launched in 2011, Litecoin is known to many as the “Silver to Bitcoin’s Gold.” MIT graduate and Google engineer Charlie Lee invented this form of virtual currency that uses script as a proof of work. It can be decoded by the use of CPUs. According to Investopedia, Litecoin is similar to Bitcoin but “it has a faster block generation rate and hence offers a faster transaction confirmation.”
Dash – When you think of Dash (aka darkcoin) think of a secretive version of bitcoin. This secretive form of virtual payment makes transactions basically untraceable and works on a mastercode network. You can mine Dash by using a CPU or GPU and it currently has a token value of $181.42.
Ripple – A cryptocurrency that doesn’t require mining? That’s exactly what Ripple offers. This virtual payment offers “instant certain and low-cost international payments.” Many like Ripple because of the lack of mining involved, the use of less computing power, and its ability to make transparent payments internationally.
Due to the lack of centralized regulation, the number of virtual payment options is large. The short list above does not begin to cover the 600+ known forms of cryptocurrency. A large number of options leave a lot of room for competition. Over the next few years we will see which types of virtual payments will become more popular.
The legal and policy landscape surrounding cryptocurrencies around the world affect about 130 countries including regional organizations that have issued laws and policies. The past years have witnessed cryptocurrencies become ubiquitous, prompting more national and regional authorities to deal with their regulation. The expansive growth of cryptocurrencies makes it possible to identify emerging patterns of this popular global trend.