Today there’s probably no person who would not have heard of cryptocurrencies; at least most Internet users have once come across this term.
Crypto assets are virtual digital money that can be used for buying goods and paying for services, and the scope of crypto use is increasing.
Where can you use crypto:
- pay for booking hotels or apartments;
- buy programs on the Internet;
- online shopping;
- a range of cafes and restaurants;
- travel tours booking;
- real estate in some countries.
Crypto assets have blockchain technology at the core. Coins are issued not by states of financial establishments but by miners who produce every coin on their computers.
Mining coins requires advanced technological equipment, enormous electricity expenses, and proper conditions in the room where “miners” are placed. Miners are spread worldwide. Their mission is to create new blocks in the network by solving complex math problems, and only high-tech computing equipment is capable of it.
The most popular crypto – Bitcoin – is mined in such a way.
Today’s Bitcoin cryptocurrency price is $21,343. Being the first crypto, Bitcoin is free of any central control or financial establishments. Cryptography is at the core of this asset. Thousands of computers worldwide that mine BTC are called “nodes”.
The BTC network is running on the Proof-Of-Work consensus protocol. That means, instead of any bank or central control, consensus on coins ownerships is decided across the nodes.
Every transaction in the Bitcoin network is recorded, and every node has it fixed. Transactions cannot be deleted or cancelled. They are united into blocks that are added to the chain.
Cryptocurrency Bitcoin price depends on:
- mining expenses;
- external economic factors;
- news background.
Cryptocurrency price prediction can be carried out based on the market cycles. BTC is one of the most stable growing assets in the long-term perspective. So if now the BTC cryptocurrency price has dropped amid the overall market downtrend, we can conclude that this asset will show a significant upward movement after a while.
Check out the BTC charts to understand how the market changes in cycles.