Cyrpto-currencies have been praised as the path of future marketplaces. In 2009, Bit-coin, the first successful cryptographic currency was invented. This currency was essentially created as a counter-thought of modern currency and why prices can be defined by anyone to insure fairness in online transactions. With the steady rise of positivity and support through different groups and companies, Bit-coin started off as virtual numbers to an actual respected form of trade. The acceptance of Bit-coin grew from a small group of people accepting it in exchange of services to multi-million dollar corporations accepting it as regular currency. When people started to catch on to this trend people decided to take the open-source project for themselves in search of making the most secure and innovative crypto-currency, leading to many other clones. A couple years later pass and the world is now filled with over hundreds of smaller crypto-currency’s.
The currency’s (or coins) would regularly take appearance on stock/currency trading sites worldwide, making their value higher in hopes that people would buy these coins with real world dollars and sell them when they have gone up in market value. Crypto’s like Ethereum, Litecoin, Zcash and others have made waves in the market in the same way that up and coming businesses have in the past on the stock market. These coin would be traded and accepted in the same way bit-coin has. Bit-coin, being the defining giant and for father of this industry has steadied and increases in price the most to a market high of $2,800 USD. With many reasons as to why Bit-coin has stayed at the top of the market, it’s no one wonder why many small time investors have shelled out a couple thousand to trade this currency around.
Working for these coins is the real kicker in all this bustle. The Bit-coin system allows for transactions to be unhackable and unchangeable due to workers (Bit-coin Miners) having the task of processing each list of transactions. These transactions at first glance of the data appears to be gibberish due to the fact that it’s computer data being used to verify each other as genuine. This happens through bit-coin blocks being made one after, when a block is created it has a digital signature that stays the same forever. When this signature is recognized it knows where to pull the information from on the internet. The blocks are created then sent to workers for processing and verification. Once a block is has been fulfilled, it sends the workers a reward (Bit-coins). These Bit-coins then create a new block chain to be processed and verified starting the process over and over again.
The issue with this being, as with any workplace, the amount of manpower (or computer power in this case). The Bit-coins become harder to mine due to so many workers constantly joining and not enough work is there for these workers. The more workers on a block the lower the mining time is and the higher the difficulty increases. Bitcoindifficulty.com is a great site to follow for to find out more about Bit-coin mining and why it’s profitable.