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The Cash from the Bits
Everyone is aware nowadays of the cryptocurrency known as Bitcoin, if not for its history, then for its monumental rise as an expensive asset. Few have delved into the history of the crypto as it is full of gaps and holes, riddled with mysteries stretching all the way to the real identity of its developer.
Everything started on 18 August, 2008, when the domain name bitcoin.org was registered. In November the same year, someone named Satoshi Nakamoto issued a link to a document entitled Bitcoin: A Peer-to-Peer Electronic Cash System. The paper detailed methods of using a peer-to-peer network to generate what was described as “a system for electronic transactions without relying on trust”. The first open source bitcoin client was released in 2009 and the issuance of the first bitcoins was launched with Satoshi Nakamoto mining the first block known as the genesis block with 50 bitcoins as a reward.
Nakamoto disappeared soon after mining the first million bitcoins and handing further development to Gavin Andresen, who then became the bitcoin lead developer at the Bitcoin Foundation – quasi “government” of the Bitcoin movement. The value of the first bitcoin transactions were negotiated by individuals on forums with a transaction even being indirectly used to purchase pizza.
Ever since the Bitcoin has grown popular, becoming a major financial force as the number of miners grew exponentially and newer systems came online on its framework, rewarding miners for transactions that were deemed secure. A long series of ups and downs ensued as services appeared that started accepting bitcoins as a payment method. The further development is organized and coordinated by the community of developers and changes in the protocol are made by the majority of the mining pools’ owners. On the 1st of August, 2017, the structure of blocks in the blockchain changed as Bitcoin split in two parts – Bitcoin and Bitcoin Cash. Owners of bitcoins automatically received an equal number of Bitcoin Cash.
In the last few days, the exchange rate of Bitcoin changed dramatically, from falling up to 30% to soaring to unimaginable heights. On November 25, the value of the cryptocurrency increased to $8,700. On 28 November, the most popular cryptocurrency in the world exceeded the mark of $9,000 and is approaching $10,000 on trading. As of 10:40 Moscow time on Monday, November 27, the Bitcoin rate on the Coindesk exchange went up 3.67% and reached $9,668 per Bitcoin. On 29 November, the price hit the $10,000 mark on trading. The Bitcoin rate reached another historic high, amounting to $ 10,086. Meanwhile, on the South Korean exchange Bithumb’s, the Bitcoin exchange rate exceeded $11,000. The former manager of the hedge fund of the Fortress Investment Group, Michael Novogratz, said that by the end of 2018, the Bitcoin rate can surpass the $ 40,000 mark. It is even predicted that by the end of the year, the Bitcoin can reach up to $100,000.
The future is utterly uncertain for the cryptocurrency just like its present and past. There are countless factors playing against the Bitcoin, starting from the irrevocable fact that it is looking like a financial pyramid to the reality that was developed by a shady individual or group of individuals, and that it is literally currency made out of electricity. The risks are immense, but it does not stop investors from capitalizing the currency with billions of dollars in search of quick profit – the greatest factor placing it at risk.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.