Cryptocurrencies have recently gained a lot of attention, the idea has been around for years, since 1983 to be more precise. David Chaum, an American cryptographer, came up with the idea of ​​an anonymous currency called electronic cash. He believed in safe trade, where we would need a token currency to match paper money and coins. This would allow for a more secure and private transaction. He invented the first form of digital money as Digi Cash in the Netherlands using the blinding formula invented by himself. This formula allowed a person to pass a number to another person and that number was changed by the recipient. “When the trustee deposits his coin, as Chaum called it, in the bank, it bears the original signature of the mint, but it is not the same number as the one signed by the mint. Chaum's invention made it possible to modify the coin in an untraceable way without breaking the mint's signature, so the mint or bank was 'blind' to the transaction." In this article, I will discuss the brief history of investing, the invention of cryptocurrency, Bitcoin, and cryptocurrency as a long-term investment. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay What is cryptocurrency, you may ask? “Cryptocurrency is a digital form of money that works with the help of a technique called cryptography. Cryptography is a process that translates readable information into codes that absolutely cannot be cracked. The master ledger of all crypto watch transactions is called the blockchain. The Blockchain records individual transactions and ownership of all cryptocurrencies in circulation, and this system is managed by "miners" who must update all transactions that have occurred and ensure the accuracy of the information. In this way, the security of the transaction is confirmed." Before we continue with cryptocurrencies as long-term investments, I would like to digress a little to discuss the history of investments. As written in Investment: A History, investment began as early as 3000-500 BC in ancient and pre-modern times, from Mesopotamia to Egypt, Greece, and Rome. However, investments were a privilege of the “ruling elites”. As a result, only a small portion of the population was able to participate. As one might imagine, in those times only land and property were used as the primary vehicle of wealth, income and gains for investors. As time passed, lending became a popular vehicle for investing during Roman times. As Roman territory expanded, property management increased. Wealthy people were able to own multiple properties in various locations, which was the driving factor of wealth in this period. However, since most elites were absentee landlords, management of their estates became necessary. This role was filled by financial and property managers, where it was often filled by family members. Egypt's geography later helped it become the central point of international trade. As a result, the banking system developed. Time progressed as we moved into the European Renaissance period, 1200-1500, where there was the rise of merchant banking, double-entry bookkeeping, and trade fairs that would later develop into stock markets. . The first joint-stock companies followed between 1500 and 1600. The development of these companies was a key event in the development of the modern financial system. Followed by the development of the first public markets between 1600 and 1787, connecting investors to investment opportunitiesinvestment and the first modern pension. During the 20th century, investment theory arose, “including the concepts of asset pricing, risk and portfolio management, and investment manager evaluation.” The second half of the 20th century is when new types of investments such as hedge funds, REITS, private equity, venture capital and ETFS arose. These investments were seen as innovative. I know, I digressed, but…this ties back to the early days of cryptocurrency, not a traditional investment vehicle but the beginning of an outside the box investment vehicle that would explode onto the investment scene. As mentioned above, it was in the 1980s when the first attempt at cryptocurrency occurred. While cryptocurrencies are not like traditional investment vehicles, they too are innovative. The invention of Digi Cash was considered extraordinary and attracted a lot of attention. Unfortunately, David Chaum and his company made some crucial missteps, agreeing that Digi Cash's e-cash products would only be sold to banks, causing the company to go bankrupt in 1998. Unfortunately, David Chaum was unable to recover from this. , since we live in a digital age, it makes sense that there is a form of digital money. Now, David Chaum's idea may not have had continued success, but the digital currency idea hasn't stopped. As time went by, cryptocurrencies appeared on the market, such as bit gold, Bitcoin, Ethereum, and Ripple, to name a few. First of all, we were all amazed and grateful that we didn't have to go to the bank to pay our bills. . This could be done by telephone and/or online. So, it wasn't far-fetched to be amazed by the digital currency. Technology always advances rapidly. Therefore, the idea of ​​​​cryptocurrency was brilliant but very problematic for the government and law enforcement to control. You see, cryptocurrency represents digital money that you can't feel or touch. It cannot be controlled in any way by government bodies, servers or any authority. Cryptocurrency does not belong to anyone, strictly peer-to-peer network. Therefore, one can understand why the adoption of cryptocurrencies would pose a major challenge for the government. They would not be able to collect data on economic activity or guide the country's economy. There are many questions about the legality of cryptocurrencies and some have even been banned in some countries, but this does not stop the idea that the monetary system could change due to the cryptocurrency industry. Bitcoin, the best known cryptocurrency, supposedly founded by Satoshi Nakamoto was born in 2008 but at the time no one really knew anything about it. Satoshi Nakamoto aka Nick Szabo invented bit gold but denied inventing Bitcoin. However, Bitcoin has become so popular that people all over the world have started buying it, hoping to wake up rich one day. And many did, waking up the next morning with their lives radically changed. In July 2010 bitcoin was valued at 8 cents, $8,100 on November 20, 2017, and 17,900 on December 15, 2017. People have even started taking classes and conferences on investing in Bitcoin and other cryptocurrencies. Some sold their homes and valuable possessions to purchase Bitcoin. For example, in 2017 a 38-year-old man in the Netherlands sold his house for a few bucks and the rest in Bitcoin. The man and his family are living in a campsite in anticipation of 2020 when they expect to become rich, awaiting the great growth of Bitcoin. However, the concern is that there will be another big growth in Bitcoin. As of July 25, 2018, the price of bitcoin was $8,140.79. More than half down $17,900 on December 15, 2017. “There.