Bitcoin turns 14: Here's what to know about crypto – Yahoo Finance

Bitcoin turns 14: Here's what to know about crypto – Yahoo Finance

Blockchain Crypto Market Technology
November 1, 2022 by Coinvasity
18
Fourteen years ago on Halloween, the idea of bitcoin was hatched and since then, the world of cryptocurrency has taken off, most recently experiencing a meteoric rise and fall in the last year.To mark the white paper that started it all, Yahoo Finance is kicking off its first episode in a series on crypto that
wp-header-logo-8.png

Fourteen years ago on Halloween, the idea of bitcoin was hatched and since then, the world of cryptocurrency has taken off, most recently experiencing a meteoric rise and fall in the last year.
To mark the white paper that started it all, Yahoo Finance is kicking off its first episode in a series on crypto that hits the basics of what this newer technology is and how its assets have swept into finance.
Whether you’re a staunch believer like Jack Dorsey and sometimes Elon Musk or longtime skeptic such as Warren Buffett and JPMorgan Chairman and CEO Jamie Dimon who both view crypto as delusional as the 17th century Dutch Tulip craze, it's important to know how it started, what cryptocurrency is, how it diffs from other assets, and of course, the technology behind it all — blockchain.
Short for cryptocurrency, “crypto” refers to a group of digital currencies and surrounding assets that are secured through encryption thanks to a network of computers all running the same software.
Thought another way, a blockchain is a distributed ledger for data and a cryptocurrency acts as its unit of account.
Following several iterations, the idea for “Bitcoin” the blockchain and its unit of account “bitcoin” was shared for the first time on the internet on October 31, 2008, by the anonymous developer(s) called Satoshi Nakamoto.
Nakamoto called the idea “a new electronic cash system that’s peer-to-peer, with no trusted third party.” That meant people could transact bitcoin between each other without a bank. It also meant people could take part in commerce with more anonymity.
The largest and first true cryptocurrency as we know it today, Bitcoin proved to be just the beginning of what’s become a fast-moving, buzzy, and often perplexing area of finance.
As a means of payment, cryptocurrencies haven’t yet picked up mainstream adoption though they have been used to pay for luxury goods such as cars, yachts, watches, and real estate by the crypto rich and people living in regions where the local currency faces hyperinflation and there's low access to dollars.
Several major brands including AMC, Home Depot, Microsoft, Overstock, Virgin Airlines, Whole Foods, and the country of El Salvador all accept bitcoin and other cryptocurrencies for payment.
Visa and Mastercard have also partnered with a number of crypto firms, allowing customers to spend cash or crypto from their brokerage accounts through debit and credit cards that offer loyalty perks such as rewards in crypto.
Beyond payments, many cryptocurrencies aren’t necessarily intended for use as currencies.
The second largest cryptocurrency Ether, for example, acts as the unit of account for Ethereum, also a payments network but better thought of as an ecosystem of applications and programmable contracts in development. Using Ethereum, people can create and transact other digital assets such as non-fungible tokens (NFTs) or trade in decentralized finance (DeFi) — a miniature, and yes, still in development blockchain-enabled financial system that in a handful of ways performs more efficiently than the traditional financial system.
Unlike the U.S. dollar which is backed by the U.S. government (and strong as hell), there are more than 10,000 other cryptocurrencies around the world today and while it can be debated for a handful, most carry little to no intrinsic value beyond what people are willing to pay for them at any given moment.
That said, in the years to come this could change. This is no small part of the reason why people invest in cryptocurrencies and, along with their much smaller size by market capitalization, why cryptocurrencies most often trade like high-growth technology stocks.
According to Coinmarketcap, the total market capitalization for cryptocurrencies and connected assets is around $1 trillion. That’s roughly two-thirds the size of Apple (AAPL) or equal to the market capitalizations of Tesla (TSLA) plus Bank of America (BAC).
At different speeds, governments across the world are grappling with how cryptocurrencies should be regulated. In the U.S., bitcoin is almost unanimously considered a commodity like gold or even soybeans, though for federal tax purposes the Internal Revenue Service (IRS) classifies all cryptocurrency as property.
Along with the volatile returns, crypto can be complicated and that’s also been a boon to fraudsters and digital thieves. Conservative estimates place illicit activity as accounting for less than 1% of all crypto activity, according to Chainalysis. But for an asset class that’s teetered between $3 trillion and $700 billion over the past year, the estimate for total amount of funds lost isn’t paltry.
Hacks, in particular, have climbed to over $2 billion in stolen funds since January.
To conjure Warren Buffett, if you want to invest in cryptocurrencies, learn the language, be skeptical, don’t invest in something you can’t understand, price and value aren’t always the same, and it's worth remembering the future is never clear.

Click here for the latest crypto news, updates, values, prices, and more related to Bitcoin, Ethereum, Dogecoin, DeFi and NFTs
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Leaving the workforce can put you in a quandary after decades of full-time work. But what if retirement was brimming with delicious food and beautiful weather? Retiring abroad can bring you just that and so much more. Here are five general … Continue reading → The post How and Where to Retire Abroad appeared first on SmartAsset Blog.
Over the last three years, seemingly every fast-food chain under the sun has launched some version of the fried chicken sandwich. Industry giants like McDonald's and Wendy's revamped what they offer while Panera Bread and Starbucks tried to get in on the craze that was started by Restaurant Brands International -owned Popeye's. "Something like the chicken sandwich took multiple years to go from ideation to actually being in our restaurants," Popeyes President Sami Siddiqui told TheStreet in an exclusive interview in May.
With housing prices on the rise, it might seem like a tall order to find a place to live that has both affordable housing and good weather — but such places do exist. PropertyShark analyzed U.S….
Thanks to inflation, there are droves of Americans who were previously doing OK who are now barely scraping by. For many, inflation means not only upping their usual cost-saving measures such as…
The Federal Reserve's seen raising interest rates by 0.75 percentage point this week to try to stem inflation. How do interest rate hikes work?
When retirement is coming up close—and you have that exciting date in mind—make sure you have everything organized to make it a seamless, enjoyable transition. Retirement Tip of the Week: Before you pack your bags for a vacation or throw away the alarm clock, make sure you have everything in order for your retirement in the weeks leading up to the big day. The first thing every person should have—months, if not a year, before retirement—is a plan, which incorporates the financial aspects of this next chapter.
The U.S. dollar has been on a tear this year. Foreign currencies have slid against the greenback, causing trouble for countries with debt and trade invoices denominated in dollars.
One of Auburn's top targets for the head coaching vacancy spoke out on the news of Bryan Harsin's firing on Monday.
As a crypto analyst with an institutional bias, I am inherently pro-regulation. Last week, Bloomberg published the results of a recent MLIV survey, in which 60% of 564 respondents agree that more regulation would make them more likely to invest in crypto assets. On Thursday, Fidelity Digital Assets published its annual survey of global institutional investors, which cited regulatory issues as one of the top barriers to investment.
Retirement is a time of frugality for many, since other than Social Security and pension payments, many folks don't have much money coming in. If you're not rooted to a specific location, you are free…
Millennials have given up on stocks. Act accordingly.
Chances are you'll never get another opportunity to buy these superb businesses this cheap again.
After two years of strong pandemic-fueled demand, the PC market has fallen into shambles. Advanced Micro Devices (NASDAQ: AMD), the No. 2 player in both the PC and server CPU markets behind Intel (NASDAQ: INTC), has not escaped the pain. Given the state of the PC market, Intel's weak outlook, and the fact that AMD's new Ryzen desktop chips have a pricing problem, the end of the year is going to be rough for AMD.
The emblematic brand of 4×4 has just filed for bankruptcy in one of the most important automobile markets.
SoFi Technologies Inc. shares were surging in premarket action Tuesday after the financial-services company topped expectations with its latest results and boosted its full-year forecast. The company generated a third-quarter comprehensive loss of $75.8 million, or 9 cents a share, compared with $30.0 million, or 5 cents a share, in the year-earlier period. Analysts were modeling a 10-cent loss per share, based on four estimates. SoFi also logged adjusted earnings before interest, taxes, depreci
Movie theater chain Cineworld Group on Monday announced a bankruptcy settlement with its landlords and lenders, clearing the way for the company to borrow an additional $150 million and make a $1 billion debt repayment. Landlords and junior creditors dropped their opposition to the billion-dollar debt repayment after Cineworld agreed to pay at least $20 million in rent that will accrue after Sept. 30. Britain's Cineworld, which filed for bankruptcy protection in Texas in September with less than $4 million in cash on hand, previously did not intend to make any post-September rent payments until the end of its bankruptcy.
Frustration is a reasonable response to Meta Platforms' (NASDAQ: META) aggressive spending on its metaverse ambitions. The logical move would be to cut back on your spending, especially when Meta's Reality Labs segment is bleeding cash. Wall Street disapproves of Meta's actions, and has slaughtered the stock price over the past 12 months.
Investors in beaten-down Chinese stocks desperately want to see good news. An easing of strict Covid-19 measures could be what they've been waiting for —if true.
Goodyear (GT) delivered earnings and revenue surprises of -34.43% and 4.70%, respectively, for the quarter ended September 2022. Do the numbers hold clues to what lies ahead for the stock?
Yahoo Finance Live anchors discuss Wall Street analysts' downgrades on HanesBrands, Paramount, and Caterpillar.

source

Add a comment