Cryptocurrency is relatively new, and it is already challenging the centuries-old world of traditional finance. Metaverse is a new development that thrives thanks to blockchain, crypto, and NFTs. It is not surprising that after the surge in 2017 and the more recent collapse of the cryptocurrency market, both investors and newbies are asking a lot of questions about cryptocurrency and the metaverse.
What Is Cryptocurrency?
Normally, the definition of cryptocurrency is virtual money that exists on a blockchain, but that doesn’t explain much to beginners. Simply put, a crypto coin is a piece of code. Take Bitcoin as an example. Now, there are more than 168,000 lines of code in the Bitcoin repository on GitHub, and it is available for viewing by anybody. This is a piece of BTC code.
The first 50 BTC generated by Satoshi Nakamoto look like this.
Why Is Cryptocurrency Crashing?
Analysts have been forecasting the crypto winter, and it has come. But no analyst, including me, could forecast the several factors that made the crash so sudden and severe. Europe is embroiled in an unpredictable war that threatens its resource supply. Sanctions imposed on Russia have impacted not only Europe but the world. The inflation rate in the USA surged to 8.6% in May 2022, making the largest 12-month increase since December 1981, but even that record was smashed in short order. In June 2022, the inflation rate surged to 9.1%, the largest increase since November 1981, with the prices for food raising to 10.4%.
When people are worried about how to buy food and pay for accommodation, crypto would be of little interest. That’s why the crypto prices are falling.
Why Do I Need a Cryptocurrency Wallet?
Many people believe that a cryptocurrency wallet can be compared to a real wallet where you keep your money. I always insist that the comparison is not entirely correct. Crypto coins are always kept on a blockchain as they are a piece of code that forms part of the blockchain. Your wallet keeps the keys that serve as proof of…