Summary

Why is Bitcoin so volatile?How do cryptocurrencies work?What are some of the benefits of cryptocurrencies?


The cryptocurrency phenomenon shows few signs of slowing down, though the dominance of Bitcoin seems to be waning somewhat. With a market share as high as 50%2 as recently as November 2017, Bitcoin remains the largest of the cryptocurrencies, but price changes and new entrants have reduced Bitcoin's share to only about 35%2 in just the past couple of months.


As activity spreads and other similar cryptocurrencies garner attention, the currency-specific risks and the systemic risks seem to be growing. In this article, we'll dive a little deeper into this evolving craze and highlight some of the risks (for a more basic understanding of Bitcoin and other cryptocurrencies, please read Bitcoin: Does It Have a Place in Your Portfolio?).

A brief history of cryptocurrency

A cryptocurrency is a digital form of an alternative currency originally intended to make it easier for people to transact business online, without the need for a third-party intermediary like a bank.


While cryptocurrencies are a fairly new development, digital currencies have actually been around for many years. Loyalty programs, such as airline frequent-flyer miles, hotel points and credit card points, are all forms of digital currency. Holdings in these programs are not in dollars, but rather in the specific company's self-created currency.


Most of these programs allow the "points" to be redeemed for value, such as flights, nights in a hotel and even jewelry, electronics, luggage and other products. These digital currencies have no physical form and are not backed by a central bank, government, gold or cash - only the company that issues them.


Alternative currencies in general are not a new idea; they actually go back way before the computer age.


Even trading stamps such as Top Value and S&H Green Stamps, dating all the way back to the 1890s, are types of alternative currencies. Like today's modern loyalty programs, individual stamps had very little value, but large numbers of them could be used to purchase merchandise directly from the issuer.


Digital currencies differ in that they can be used by any business willing to accept them, not just the issuer. The list of companies willing to accept digital currencies is still very small, but growing.

Continue to read page 2 to 7 of this article here: https://seekingalpha.com/article/4140651-cryptocurrency-mania-next-bitcoin-ethereum-litecoin-ripple-...

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Help friends or someone you care about discover blockchain and cryptocurrencies, by simply sharing this page. Don't keep it to yourself.....share Blockchain Company (BC).


Did You Know About This? 
You can curate a Personal Blockchain Page right here on Blockchain Company ( BC ) like these 2 great user examples here:

http://www.blockchaincompany.info/Paula
http://www.blockchaincompany.info/Francisco

Show your blockchain page of to your employer, colleagues and friends. It demonstrates your professional awareness and competency of this revolutionary paradigm changing the world. It's free if you are a consumer user. Just Create your Account here in less than 3 mins! 

Or Click Create Account above in the upper right corner. Instructions how to curate your blockchain page from information you discover on BC, is sent in your email after you sign up. 

You might be able to capture your ' first name " unique url for your blockchain page too! Like : http://www.blockchaincompany.info/robert

You may be entitled to cryptocurrency tokens, offers and discounts at any time in the future once you are a user on our platform.