WHAT ARE CRYPTOCURRENCIES REALLY?

BotXcoin and Ethereum
BotXcoin and Ethereum

If we take away all the noise around cryptocurrencies and reduce it to a simple definition, we find it to be just limited entries in a database no one can change without fulfilling specific conditions. This may seem ordinary, but, believe it or not: this is exactly how we can define a currency.

Take the money on our bank account: What is it more than entries in a database that can only be changed under specific conditions? We can even take physical coins and notes: What are they else than limited entries in a public physical database that can only be changed if we match the condition than we physically own the coins and notes? Money is all about a verified entry in some kind of database of accounts, balances, and transactions.

In general and simple explanation, nowadays cryptocurrencies devide become 2 types, Coin and Token. Each of them has different functions and features. Many people believed that Coin is able to be mined and Token is not able.

By October 2018, market value of the global cryptocurrencies base on CMC (www.coinmarketcap.com) has reached 200 billion USD and the worldwide daily exchange volume has reached 20 billion USD. Bitcoin (BTC) as the pioneer in the cryptocurrency world dominances around 50% and the remain 50% occupied BY the new cryptocurrencies (around 2,000 cryptocurrencies) with new technologies, new concepts, new functions and features have been emerging vigorously in recent years. Currently, there is only 15 cryptocurrencies who has market cap more than 1 Billion USD and their daily exchange volume of each has reached around 100 million USD until 5 Billion USD.

One study claims that nowadays there is more than 5 millions active cryptocurrency users. Comparing with more than 5 billions population of the world. So it is still a big room for cryptocurrency to develop and increase the active users.