Cryptocurrencies and their value
Recently the world’s media has started to report heavily on Bitcoin, which is no surprise as last week Bitcoin spiked to over $4,000 dollars for one coin (dropped to 3,900 as of today) and it only took 60 days of the digital currency to jump from $3,000 to $4,000 a few months ago. There are stories that if you invested $5 in Bitcoin back when it was opened to the public in 2009 it now would be worth $4.4 million.
But how did this digital currency space evolve? Here at Crowdholding we have looked into the history of cryptocurrency and why cryptocurrencies are so valuable.
History of the cryptocurrency
Cryptocurrencies have a longer, deeper history than the creation of Bitcoin. The origins of cryptocurrencies were born back in the 1980’s when a cryptographer called David Chaum created a secure algorithm that allowed encryption required electronic fund transfers. Chaum’s “blinding signature” laid the foundations for the future development of every type of digitalised currency transaction, whether that be a digitalised cash transfer or an alternative currency such as Ethereum.
From 1980’s through to the early 2000’s there were numerous virtual currencies, most notably was e-gold. e-gold was created in Florida and functioned as a digital gold buyer. It’s users would send in their old jewelry, coins and trinkets to e-gold and in exchange they would receive digital “e-gold” which was based on the ounces of gold. E-gold users could cash out for physical gold, trade their holding with other users or exchange their e-gold for dollars.
Fast forward to 2008, when the pseudonym of Satoshi Nakamoto released a whitepaper which detailed what is widely regarded as the first modern cryptocurrency. The whitepaper showed a concept of combining anonymity, finite supply, blockchain technology and decentralisation which we all know now as Bitcoin. Bitcoin started to be considered a proper currency after companies such as WordPress, Microsoft and Expedia started to accept it as a mode of payment back in 2010.
Now in 2017 cryptocurrencies are booming, according to CoinMarketCap, there are over 1,000 different listed cryptocurrencies that are in circulation. And in July 2017 the cryptocurrency market was valued at over $95 billion.
It has not just increased in value and the quantity of different digital currencies, but also in it’s use in society. Now there is numerous courses are emerging at colleges and you can even pay for your tuition in bitcoin. Different ways of raising capital has also been impacted by cryptocurrencies. The birth of the Initial Coin Offering is a way cryptocurrency startups can raise capital without investments or having to give up equity in their business.
Why are cryptocurrencies so valuable?
There are numerous reasons why cryptocurrencies are valuable as a commodity here we have listed some of the main benefits.
- Protection against fraud — Individual cryptocurrencies are digital and cannot be counterfeited due to the technology that is implemented. Also they can’t be reversed by the sender, such as credit card charge backs.
- Open to anyone — Approximately there are around 2.2 billion people with access to a mobile phone or the internet who do not currently have access to a traditional exchange service. Cryptocurrencies can alleviate that issue and allow everyone regardless of their location to become involved.
- Lower transaction fees — There aren’t usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network. Compared to the average bank transfers. Currently the average price for a outgoing international wire transfer in the US is over 40 dollars.
- Decentralisation — Instead of having one main network hosted in one location, cryptocurrencies use a global network of computers using blockchain technology. This database records all the transactions, this is an advantage because there is no one central authority that can be hacked or be manipulated.
- Protection against identity theft — When you purchase something with a credit card, you give the merchant access to your full credit line regardless of the size of the transaction. Credit cards work on a “pull” basis where the service starts the payment and takes out the amount. Cryptocurrencies use a “push” mechanism that allows the user to send the exact amount without giving access to their information.
- International recognition — Since cryptocurrencies are not bound by exchange rates, interest rates and any other charges it can be used on a global scale. This can save money and time from the business or the individual aspect.
The future looks very bright for cryptocurrencies and the industry is continuing to grow. If you wish to learn more about Crowdholding’s pre-sale ICO click here and dive into the world of cryptocurrencies. We also have a step by step guides on how to create a wallet, purchase Ethereum and exchange it for YUPIES.
CrowdholdingCrowdholding connects the crowd with entrepreneurs, allowing you to give feedback and ideas for a future share.
First æternity Aepp Joins Crowdholding: Welcoming CryptoTask
Crowdholding Partner’s with Aeternity Ventures to support Starfleet Acceleration Program
Crowdholding May Update
Top 5 reasons to get YUPs! (Get dividends for holding YUPs)
Crowdholding April Update
Implementing Crowdholding widget to your website
ITF excelled with Crowd Wisdom
TailoredInk ICO Community Management
IronX ICO Social Media Marketing
Aerum ICO Influencer Marketing
Jarvis built with the crowd
ySign engaged the blockchain crowd
6 Ways to Earn Crypto For Free
Common Mistakes When Investing in ICOs
Connectjob joins Crowdholding
Week in a Nutshell & Smart Contract
Opporty joins Crowdholding
Getting to Know our Users
SmartCash joins Crowdholding
Bitcoen.io joins Crowdholding
What is a Smart Contract?
How to Create an ICO - Part 3 - Marketing
How to Create an ICO - Part 2 - The Two "W's"
How to create an ICO - Part 1 - The building blocks
Invest Time, Not Money
What alternatives are there to financing your business?
What is an ICO? And should you invest?
Blockchain technology : changing the world of business silently
Crowdholding’s Pre-Sale — A Case Study
How to become a Crowdholding supporter: Part 3 exchanging ETH for YUPIES
China ban on ICO’s : Not all Doom and Gloom?
How to become a Crowdholding supporter: Part 2 Buy some Ether (ETH) on Coinbase
How to create a task on Crowdholding
How to become a Crowdholding supporter: Part 1 creating a Ethereum wallet on MyEtherWallet.com
How to create a project on Crowdholding
Cryptocurrencies and their value
What is Crowdholding?
What is a White Paper? And do you need one?
What can CEO’s / Entrepreneurs learn from athletes?
How to start my own business? Part 3. Validating Your Business Idea
Top 10 career mistakes to avoid
6 Benefits of a Sharing Economy
How to start my own business? Part 2. Factory for ideas
Startup Promotion and Content Marketing Strategy
How to start my own business? Part 1. Five simple rules
The Year Capitalism could have Changed
Robots & Work: Jack Ma Predicted The Emergence of Robot-CEO
Startup Psychology: Why Entrepreneurs will save the planet?
Billionaire's School: it's hard to be the first
10 interesting sport startups that will rule 2017
30 reasons to be an online entrepreneur
How to chose a dating site?
You should know this striking marketing trend
10 reasons to join Crowdholding if you are a student
How did 67,000 people create the first crowdsourced melody?
Launch a startup with a partner, never alone.
Collaboration solves education problems with flying colors!
Hollywood movie from your smartphone?
Design your room the way you want it!
Hi, You're Hired!
Hi, Your business is now a unicorn!
Don't want to change the world for the better? You can stop reading now.
Sharing Economy is not a niche, it's the future
📊 What if karma was 🆚 worth something? 🤜🤛
Raise capital, preserve equity
5 marketing strategies for successful contact with Millennials
Why 75% of new products are doomed to fail?
Small Business Staffing Opportunities
What are Crowd Currencies?
Mass Collaboration leads to unprecedented innovation
Alternative Finance: Equity vs Crowdshare Crowdfunding
Co-creation between the crowd and small businesses
THE RELATIONSHIP BETWEEN IT AND CO CREATION
Corruption on Wall Street: The Stolen American Dream
To own or to rent, trends in sharing economics
CROWDSOURCING IN FASHION
Crowdsourcing a girlfriend
CrowdSourcing Trends 2020
Peer-to-peer journalism: What and how?
The Peer-To-Peer Marketplace Revolution
Peer-to-peer in the fashion industry
The relationship between Co-creation and Innovation
CROWDFUNDING AND VIDEOGAMES
NON-EQUITY CROWDFUNDING CHANGING FASHION BUSINESS
Revenue-sharing vs Reward-based crowdfunding
Blockchain application in Media industry
Blockchain Technology & Crowdfunding
Creative marketing through Crowdsourced Content
JOBS OF THE FUTURE
Alternative finance for small businesses
WHY CO-CREATE? – A message to the Crowd
Think Tanks and Benefits
Empowering Global Citizens to Improve Education
THE EVIL WALL STREET
Co-creation in Tech
WHY CO-CREATE? - Benefits for Small Businesses
Co-creation and Innovation
Co-creation in the Fashion Industry
Crowdholding vs Wallstreet
Make a brand your brand
Reward Distribution Rules.
Please read below how the rewarding structure works.
Voters get 35% of the reward
Commenters still receive the majority of 65% of the reward weight, while voters 35%.
You receive only 7 upvotes and must vote what you think are the best answers
You now have a limited amount of upvotes. You won’t see the other user votes until the task expires. If you vote the top half comments you will receive a portion of the 35%.
Top 50% upvoted comments get bigger share
Our algorithm gives top 50% upvoted comments more rewards than the bottom 50% comments.
Give me an example with numbers
Upvoters get 35 % of the reward.
65 % goes to the commentors.
Half of the reward is gained from bottom 1/2.
Upvoters get nothing
1/2 of the reward pool for this segmentis distributed among top 1/2
There is a task with 1000 Reward.
Let’s assume Top 1/2 recevies 70% of all upvotes.
Bottom gets 30 %. But because half of the reward goes to Top 1/2 that makes the final numbers more like Top 1/2 gets 85% (55.25% for commentors, 29,75% for upvoters) and bottom gets 15 % of the final reward.
If there’s 100 upvotes:
1 upvote that upvotes a comment in Top is worth around 12 Yups (circa 8 goes to commentor, 4 goes to upvoter)
1 upvote that upvotes a comment in Bottom is worth 5 (All goes to commentor).
Reminder about our Moderation
If you upvote a comment that’s reported as Spam or comment that should not be rewarded (eg. “Good job” comments) you will lose your right to be rewarded for this task.
We hope you like this new system and it brings you lots of fruitful discussions and reward you fairly.
Do you still have questions? Read more detailed explanation at our helpdesk
All the best,
Your Crowdholding Team