Top 12 Cryptocurrency Coins
1. Bitcoin (BTC)
This article provides readers a beginner crash course to the top 12 cryptocurrency coins out in the cryptocurrency market. BTC is the abbreviation of the bitcoin cryptocurrency. Cryptocurrency coin abbreviations are usually used by investors to identify and trade desired coins on a cryptocurrency exchange.
Bitcoin (BTC) was originally invented and created by an unknown person or a group of people under the name or pseudonym of Satoshi Nakamoto in the year 2008. The objective of Bitcoin is to become the world's Peer-to-Peer Electronic Cash System and it was the first decentralized cryptocurrency that had since grown to become the digital cryptocurrency with the largest market cap of more than $150 billion USD.
Proof of Work (PoW) Consensus Protocol
The bitcoin blockchain uses the Proof of Work (PoW) consensus protocol to validate blockchain transactions and to create new bitcoin cryptocurrency. Miners create bitcoin by solving mathematical puzzles using computers or mining rigs with high computing power, the first miner that solves the puzzle gets to place the next block on the blockchain and claims the next newborn bitcoin cryptocurrency. The same process verifies the previous transactions in the bitcoin blockchain to prevent frauds.
Energy Consumption of Bitcoin Mining
Forbes reported that bitcoin’s Proof of Work mining mechanism consumes huge amount of energy equivalent to powering an entire country. High energy consumption may lead to global warming, hence some critics denounced bitcoin cryptocurrency and its blockchain to be harmful for the environment. To add on, bitcoin’s blockchain technology is nowhere near mass adoption level yet, imagine the amount of energy it will need when it reaches that level.
Bitcoin Supply Cap
Bitcoin has a cap of 21 million coin supply with a total coin circulating supply of around 17 million as of April 2018. Experts estimate that bitcoin will hit the supply cap in around year 2140. After reaching the supply cap, bitcoin miners can no longer receive new bitcoin cryptocurrency as rewards after mining a new block, instead they will only receive blockchain transaction fees for their efforts.
Cryptocurrency market speculators predicted that bitcoin cryptocurrency price will rise because there will be no more new bitcoins to meet new demands, they predicted that miners will get higher transaction fees when that happens to cover lost income of acquiring new bitcoin cryptocurrencies.
Bitcoin network's on-chain transaction processing capacity is limited by the block creation time of 10 minutes on average and limit of 1 megabyte block size. In spite of that, Bitcoin is one of the most stable cryptocurrency regarded by many traders to be a stable coin that will not fluctuate too wildly in price. Some traders switch their cryptocurrency portfolio to bitcoin after making a profit from other cryptocurrency altcoins to wait for a better buying time elsewhere.
Because of bitcoin’s success, many traders and investors consider all other cryptocurrencies that are not bitcoin to be altcoins, meaning alternate coins to Bitcoin. Some investors consider bitcoin to be gold 2.0 as a cryptocurrency asset to hedge against risk. Bitcoin was frequently voted to be one of the best cryptocurrency in the world as of May 2019. Bitcoin currency and bitcoin trading remained as one of the most popular conversation topics among cryptocurrency investors.
Bitcoin Wallet Generator
Bitaddress.org is reported to be an open-source bitcoin wallet generator that creates brain wallet or paper wallet for users to trade bitcoin cryptocurrency on the blockchain.