Introduction to Cryptocurrency for Canadians

Introduction to Cryptocurrency for Canadians

The cryptocurrency market has been making quite a bit of a stir in the financial industry. When Satoshi Nakamoto first unveiled his idea for a decentralized, digital currency, no one could have predicted that the project would achieve the notoriety, fame (and infamy), and success that it enjoys today. Today, according to surveys, it has been established that over 40% of the American adult population have either invested in cryptocurrency or are planning to do so in the future.

But cryptocurrency is not just an American phenomenon. El Salvador recently became the first country to officially recognize Bitcoin as legal tender. Bitcoin mining has been shown to be most popular among Eastern European countries, such as Ukraine, Poland, Russia, and various other countries, and, of course, countries like the UK, Germany, France and of course, Canada have begun to embrace the phenomenon. Crypto trading sites, Bitcoin casinos in Canada, and even crypto-based business have been quite successful among the Canadian population.

Cryptocurrency, for all its popularity, is still a new phenomenon. Quite a lot of people either have a tenuous grasp on what exactly crypto is, and some are completely unfamiliar. In this article, we are going to explain just what crypto is, and look over the most popular cryptocurrencies available in Canada.

What is Cryptocurrency?

So, let us first answer the question, “What is cryptocurrency?” In simple terms, cryptocurrency is a decentralized, digital currency, which is untraceable and not beholden to any central authority. This is just one of the aspects that most attracts people to bitcoin, and other cryptocurrencies. The earnings made from bitcoin can’t be taxed by banks or governments, as the assets are decentralized, and their encrypted nature makes it nigh-impossible for bitcoin-based purchases to be traced by anyone.

Cryptocurrency officially began in 2009, when Satoshi Nakamoto unveiled Bitcoin to the public. While back then a single Bitcoin unit was worth less than a dollar, today, the value of the crypto has grown significantly, making it one of the most popular investment options. Today, a single Bitcoin unit is worth close to $30.000, with prospects of the price increasing further in the future.

Most Popular Cryptocurrencies in Canada

In this next section, we are taking a look at the three most popular cryptocurrencies which Canadians have adopted and taken a liking to. It is very simple to see why the following three cryptocurrencies are so popular on the Canadian market, as they are the three most popular cryptocurrencies on the market in general. Let us take a look.

  • Bitcoin

Bitcoin is, by far the most popular cryptocurrency in the world. We won’t delve deep into it in this section, as we already discussed it in previous sections, but we will say some new things. Bitcoin came to the scene in 2009, making it the first of its kind. It was also the first cryptocurrency which was used for purchases. In 2010, a programmer named Laszlo Hayecz traded a huge sum of Bitcoin in exchange for two pizzas, marking May 22, 2010, as the date when the first commercial Bitcoin transaction occurred.

  • Ethereum

Ethereum is the second most popular cryptocurrency in the world today. It was created in collaboration with a dozen programmers, though the man whose name is most often associated with the brand is Vitalik Buterin. It was Mr. Buterin who named the crypto, apparently based on a word he picked up from a science fiction novel. Today, Ethereum is worth close to $2000, and rising.

  • Ripple

Another of the most popular cryptocurrencies on the market, Ripple is certainly one of the biggest cryptos in Canada. The Ripple XRP cryptocurrency is one of the fasting growing on the market, having almost reached a $1 in value. The company, Ripple Labs Inc. was also named one of the 50 Smartest Companies in 2014, for their contribution to the crypto market.

  • Canadian Stablecoin

What is a stablecoin? In simple terms, a stablecoin is a cryptocurrency, the value of which depends on another form of currency, whether FIAT or crypto. Canadian Stablecoin is a digital, encrypted currency, whose value is entangled with that of the Canadian dollar. So, it isn’t much of a surprise that it is one of the most successful cryptocurrencies in Canada.

More Finances