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Cryptocurrency - Will It Kill All Currencies In The World?

Updated: 6 days ago

Bitcoin made a new record high above $47,000 on 8th Feb after Elon Musk's Tesla Inc declared a $1.5 billion investment in the world's largest Cryptocurrency. Tesla also said that it would start accepting payments in digital coins for its electric cars.

Table of Contents

What is Cryptocurrency?

History of Cryptocurrency

List of Cryptocurrencies (by market capitalization)

Cryptocurrency Charts

Whether Cryptocurrency is a Good Investment?

Whether Crypto Trading is Legal?

Important Resources related to Cryptocurrency

Risks associated with Cryptocurrency


What is Cryptocurrency?

Cryptocurrency is a digital currency with no physical presence like a coin or note. Satoshi Nakamoto has developed the first cryptocurrency' bitcoin' in 2009, and many such currencies were born in the last few years.

One can transfer Cryptocurrency to another person without involving an authorized third party like a bank or financial institution. Cryptos are similar to tokens or casino chips, which can be used online to make payments to get goods or services.

These currencies are stored in a digital wallet and backed by Blockchain technology. Blockchain is a method of storing information so that it cannot be changed or hacked from any system.

History of Cryptocurrency

The footprints of Cryptocurrency started in 2008 when a paper titled "Bitcoin: A Peer to Peer Electronic Cash System" was published by Satoshi Nakamoto.

The sales first transaction in Bitcoin took place only in 2010 when a person purchased 2 pizzas by swapping 10,000 bitcoins.

Later many such currencies start to emerge, such as Litecoin, Namecoin, etc. Simultaneously, these currencies also received a lot of criticism as some people used them for illegal transactions and didn't come under any sovereign authority.

Many cryptocurrency exchanges have been formed across the world to facilitate the transaction of these cryptocurrencies. Bitcoin value started increasing against US Dollar (BTCUSD) in Dec 2017. Its values increased tremendously (from 11K to 41K) when the pandemic situation started impacting the world.

List of Cryptocurrencies (by market capitalization)

There are many cryptocurrencies present for trading, and the area of Cryptocurrency is always exploding. There is no wonder if someone releases new digital token tomorrow, and it can become one of the top Cryptocurrency.

As of today (9-Feb-2021), below is the list of top-10 cryptocurrencies in the world.

Top-10 Cryptocurrencies

Bitcoin (BTC)

BTC is the game changer and owns 72% of the market share (market cap is $868 Billion). It also leads the pack in terms of popularity and user base.

Ethereum (ETH)

ETH is the second largest Cryptocurrency and owns 16.4% of the market share (market cap is $198 Billion). The primary purpose of creating Ethereum is to provide decentralized financial instruments to the entire world.

Tether (USDT)

USDT is the third-largest Cryptocurrency and owns 2.5% of the market share (market cap is $30 Billion). It was launched in 2014, and Tether describes itself as "a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner."

Tether is the first stablecoins, and its price is directly tied to the US dollar. This coin has been built to avoid the significant fluctuations in cryptocurrencies.

Cardano (ADA)

ADA is the fourth largest Cryptocurrency and owns 1.7% of the market share (market cap is $21 Billion).

ADA is recognized as "Ethereum Killer" as people believe its blockchain technology is more advanced as compared to Ethereum and also co-founded by Charles Hoskinson, who is one of the founding members of Etherum.

Polkadot (DOT)

DOT is the fourth largest Cryptocurrency and owns 1.7% of the market share (market cap is $21 Billion).

It was created by Gavin Wood, who is also another founding member of Ethereum, and it was famous for its shared security. It allows developers to create new blockchains along with their own security measures.


XRP is the Fifth largest Cryptocurrency and owns 1.6% of the market share (market cap is $19 Billion).

As per Ripple's definition, 'XRP is a native digital asset on the ledger, an open-source, permissionless, decentralized blockchain technology that can settle transactions in 3-5 seconds'.


All these cryptocurrencies own a market share between 0.86-1% of the crypto market.

BNB is the payment method for fees in Binance Exchange, which is one of the famous exchange in Crypto.

LTC is founded by Charlie Lee, referred to as 'Silver to Bitcoin's gold' as it was started immediately after the bitcoin.

DOGE rose to fame when the world's richest person Elon Musk tweeted, 'who let the DOGE out.' It was started by Billy Markus and Jackson Palmer.

Sergey Nazarov introduced LINK along with Steve Ellis. It is a decentralized oracle network that fills the gap between smart contracts and outside data.

Cryptocurrency Charts

Tradingview is the #1 platform that attractively provides crypto charts. It gained many users when it signed up with Nasdaq and Bitfinex - a cryptocurrency exchange. It also signed with other Crypto exchanges such as Bitstamp, Binance, Coinbase, etc.

Cryptocurrency charts in Tradingview

Tradestation crypto has integrated with Tradingview a few months back, and it allowed the traders to trade, invest directly in cryptocurrencies without leaving the Tradingview platform. It is a great luxury and comfort to all crypto traders.

Whether Cryptocurrency is a Good Investment?

There are many debates regarding investing in Cryptocurrency. World's most significant investor Warren Buffet compared Cryptocurrency to paper checks and raised an important question – "It's a very effective way of transmitting money, and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?" According to him, investing in Cryptocurrency is risky and worthless.

However, the world's richest person Elon Musk takes the opposite view, and he thinks these cryptocurrencies are the future universal currency of the world.

Recently his company Tesla Inc has invested $1.5 billion in Bitcoin, and it will start accepting the digital tokens as payment for its electric cars.

However, when it comes to investing personal money, one has to note three important things:

  1. Cryptocurrencies don't have an underlying asset as security

  2. Cryptos are not authorized by any sovereign bodies (reserve banks or government)

  3. Cryptocurrency is a digital currency; hence there is a risk of hacking or losing your investment if the digital wallet company goes out of business

Hence, only a small portion of your capital can be deployed if anyone is serious about investing in crypto.

Whether Crypto Trading is Legal?

There are no legal issues to trade/pay in Cryptocurrency in the US. However, their legality depends on each individual country.

For example, it is completely banned in China. In India, there are many crypto exchanges which are already acquired many users. Besides, the daily volume is increasing for cryptocurrency transactions on all Indian exchanges.

Both the Reserve Bank of India (RBI) and the Central Government has cautioned the public about the potential risks associated with cryptocurrencies. RBI has explicit instruction to banks, financial institutions that not to deal in these virtual currencies and also stop providing services to all companies which deal with virtual currencies.

Important Resources related to Cryptocurrency

Below are the useful resources related to the crypto world:


It is one of the famous cryptocurrency exchanges in India. It has tons of study material related to Cryptocurrency on its site.


It is a useful website that lists A-to-Z information related to all the cryptocurrencies. Its homepage itself displays over 100 crypto coins information.


It was initially designed to sell education material for trading. However, it turned into a Ponzi scheme, and a British Daily newspaper described it as "one of the biggest scams in history." Over 90 people who associated with one coin have been prosecuted in China.


It is a new cryptocurrency launched by Facebook. It is said that it is backed by low volatility financial assets to avoid drastic fluctuations.

Pi coin (PI)

It is a brand new coin in the world of Cryptocurrency. Pi network is currently at Phase 2 with over 7 million members worldwide.

Risks associated with Cryptocurrency

As mentioned in the earlier part of the article, Cryptocurrency carries three critical risks:

  1. Cryptocurrencies don't have an underlying asset as security

  2. Cryptos are not authorized by any sovereign bodies (reserve banks or government)

  3. Cryptocurrency is a digital currency; hence there is a risk of hacking or losing your investment if the digital wallet company goes out of business


Hackers send out a malicious link to get access to your computer or smartphone to "mine" Cryptocurrency for their personal benefit.

They can put some malicious code onto your device through many methods. Then they can help themselves to grab your cryptos.

If you store cryptos, it is better to use a good antivirus, close any application that consumes more power, and don't click on any unknown links.


© 2020 by Indrazith Shantharaj.