APRIL 2018 | MANE PRODUCT & TECHNOLOGY | 9
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What is a cryptocurrency? It's a digital asset/currency that uses cryptography to secure its transactions. A large number of cryptocurrencies are decentralised - they have no central authority or third party involved. Instead, they work through a blockchain - a public transaction database functioning as a distributed ledger. The blockchain tracks a list of records called blocks, which are secured using cryptography. In 2009, Bitcoin became the first decentralised cryptocurrency, and its value has rocketed in the last year. Since then, countless cryptocurrencies have been created and the list continues to grow.
Today, the most commonly discussed cryptocurrencies are Bitcoin, Ethereum, Litecoin and Ripple with new ones springing up every day - including the likes of gag cryptocurrencies such as Dogecoin which has become exactly what it intended to mock.
Cryptocurrencies have also become a popular trading commodity after numerous individuals have come out saying they've made thousands, if not millions, of dollars from their initial purchase of Bitcoin. Eager to have similar fortunes, the number of users trading and mining cryptocurrencies has increased dramatically in just the last 6 months. Just one year ago, Bitcoin was hovering around $1,000 USD, but shot up to nearly $20,000 USD by December 2017. Other cryptocurrencies had similar upswings in the latter part of 2017 including Ethereum and Ripple. They have since fallen in value, but remain well above where they were just one year ago.
In an effort to cash in on the crypto craze, crypto-mining has grown significantly and there's been an increase in demand for powerful desktop computer components most often intended for hardcore gaming. The demand shot prices sky-high, making an investment in a new PC for actual gamers difficult. (See video below.)
So is the cryptocurrency market stagnating after its high at the end of 2017 or is it still the calm before the storm? Only time will tell. ■