Whether you are a cryptocurrency enthusiast or not, you are likely to report on their development or the “bull run” they have experienced since the middle of last year, as well as the slump that occurred in May.
However, the world of cryptocurrencies is not only about price “explosions” and slumps, which speculators are grinding their teeth at, but also experienced traders. Digital currencies have many uses and are a key part of, for example, the decentralized finance system that we have last time.
Today, however, we have prepared a series of questions for you, which are not about decentralized finance, but about the history and functioning of cryptocurrencies as such. With each question, you also have some interesting facts related to it.
Other interesting topics from the world of cryptocurrencies:
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You may find it surprising, but the oldest cryptocurrency of the above is the canine alternative to bitcoin “for the masses”, which was created as a joke. Dogecoin has wanted to distance itself from other cryptocurrencies since its inception and On December 19, 2013, dogecoin experienced its first “shot” of price, when in three days its price more than tripled and jumped to 0.00095 USD.
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Vitalik Buterin was born in 1994 in Russia, from where he moved to Canada with his parents at the age of six. From an early age, he was very talented and was particularly attracted to mathematics, programming and economics. He dropped out of university in 2014 after receiving a $ 100,000 grant and began working for Ethereu full time.
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Because bitcoin runs on the Proof of Work algorithm, it is important that its miners be rewarded for verifying single transactions and creating a new block to be included in the blockchain. Following the creation of the cryptocurrency, the reward for extracting one block was set at 50 bitcoins, which is currently around € 1.9 million. However, due to the final number of bitcoins (21 million), the size of this reward is halved every 210,000 blocks and currently stands at 6.25 bitcoins.
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ICO, or Initial Coin Offering, is the equivalent of an initial public offering (IPO) in the cryptocurrency world. A company that wants to bring a new token to the market gives investors the opportunity to buy the initial issues of this token and thus obtain funds before they start trading on well-known exchanges. ICOs have become a popular tool for investors to support their favorite projects, but fraudulent projects, which have only aimed to withdraw money from investors from the beginning, are often associated with this concept.
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On March 13, 2020, when the first wave of the COVID-19 pandemic in Europe was just beginning, bitcoin also fell sharply during stock index crashes. It even broke the $ 4,000 mark and dropped to around $ 3,867 on various exchanges, which was the lowest price since March 2019, and the cryptocurrency has understandably not reached that limit since then.
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While Binance and Huobi are among the largest cryptomen exchanges in the world and Kraken has long been in the TOP 10, Mt. Gox is the story of one of the biggest scams in the world of cryptocurrencies. On the Mt. Up to 70% of bitcoin transactions took place in its “golden age”. However, the stock market suffered a fatal blow in 2014 when it suspended withdrawals in early February of that year after discovering “suspicious activity in its digital wallets.” The company subsequently reported that it had “lost” more than 850,000 bitcoins, representing about 6% of all bitcoins in circulation at the time. To date, only a small proportion of these bitcoins have been found and the victims of fraud have still not been compensated.
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Because bitcoin is decentralized, there is no standard or body that specifies the abbreviation for cryptocurrency. However, the generally accepted abbreviation is BTC, which dates back to the beginnings of the largest cryptocurrency. However, XBT is also an accepted designation, which reflects the growing legitimacy of bitcoin as an international currency. This abbreviation comes from the International Organization for Standardization (ISO), according to which any currency that is not associated with any country should begin with an X, with BT being the abbreviation for bitcoin. An example is gold, which has the widely accepted abbreviation XAU.
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The current order of cryptocurrencies according to their market value leads, of course, to bitcoin, followed by ether and stablecoin tether. The first five is then closed by a binance coin and a cardano. Although dogecoin was one of the three largest cryptocurrencies for a short time in early May this year, the price drop has gradually slipped out of the top five and currently ranks seventh, which is certainly not a bad result for the cryptocurrency, which was a joke.
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The term HODL is derived from the typo of the word “hold”, which refers to the strategy of buying bitcoin or other cryptocurrencies and their long-term holding. This term originated in 2013 at the Bitcointalk forum, when the price of bitcoin fell by 39 % and one of the users boasted of his strategy with the phrase “I AM HODLING” with the mentioned typo. The term HODL later became synonymous with the strategy of purchasing and holding cryptocurrencies regardless of short-term fluctuations in their prices.
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Tether (USDT) is a stablecoin, a cryptocene with minimal volatility, usually tied to government currencies or assets (in this case, the US dollar). This cryptocurrency thus serves as a “bridge” between the world of fiat money and cryptocurrencies, especially since many exchanges do not have relationships with banks that allow them to make regular deposits or withdrawals, but accept stablecoins such as Tether. It is also a widespread way to buy cryptocurrencies in China, where direct trade in them is prohibited.
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Staking is a way of valuing cryptocurrencies on stock exchanges or directly in cryptomen wallets, where the cryptocurrency holder locks his coins or tokens as a deposit and lets them “work” through the Proof of Stake algorithm. in the form of interest on a cryptocurrency or other token.
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