Cryptocurrencies have attracted a lot of attention recently, 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 money. He believed in secure trade, in which we would need token money to match paper money and coins. This would allow for a more secure and private transaction. He invented the first form of digital currency by the name of Digi Cash in the Netherlands using the blinding formula invented by himself. This formula allowed a person to transmit a number to another person and for this number to be modified by the recipient. “When the recipient deposits his coin, as Chaum called it, at the bank, it has the mint's original signature, but it is not the same number that the mint signed. Chaum's invention allowed the coin to be altered in an untraceable manner without breaking the currency's signature, therefore the currency or bank was "blind" to the transaction. In this article, I will discuss a brief history of investments, 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 Should Not Be Banned”? Get an original essay: What is cryptocurrency, one may ask? “Cryptocurrency is a digital form of money that works using a technique called cryptography. Cryptography is a process that translates readable information into impossible-to-crack codes. The main ledger of all cryptographic monitoring 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 made and ensure the accuracy of the information. In this way, the security of the transaction is confirmed. » Before continuing into cryptocurrencies as long-term investments, I would like to digress a little to discuss the history of the investments. As noted in Investment: A History, investment began as early as 3,000 to 500 BC in ancient and premodern times, from Mesopotamia to Egypt, Greece, and Rome. However, investment was a privilege of the “power elite”. As a result, only a small part of the population was able to participate. As one could imagine, only land and estates were used as the primary vehicle for wealth, income and gains for investors during this era. Over time, loans became a popular investment vehicle during Roman times. As Roman territory expanded, so did domain management. Wealthy people could own multiple estates in various locations, which was the wealth factor in those days. However, as the majority of the elite were absentee owners, it became necessary to manage their assets. This role was filled by financial and property managers, often filled by family members. Later, Egypt's geography helped make it the focal point of international trade. As a result, the banking system developed. Time has progressed as we enter the period of the European Renaissance, 1200-1500, where there was the rise of merchant banking, double-entry bookkeeping and trade fairs which later evolved into in stock markets. . Followed by the creation of the first joint stock companies between 1500 and 1600. TheDevelopment 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 opportunities and the first modern pension. It was during the 20th century that investment theory, “including concepts of asset pricing, risk and portfolio management, and evaluation by investment managers,” emerged. The second half of the 20th century is the time when new types of investments emerged, such as hedge funds, REITS, private equity, venture capital and ETFS. These investments were considered innovative. I know I'm getting off topic, but this goes back to the beginnings of cryptocurrency, not a traditional investment vehicle, but the beginnings of an investment vehicle that would soon think outside the box and explode on the investment scene. As mentioned earlier, it was the 1980s when the first attempt at cryptocurrency occurred. Although cryptocurrencies aren't like your traditional investment vehicles, they are also innovative. The invention of Digi Cash was considered extraordinary and attracted a lot of attention. Unfortunately, David Chaum and his company made crucial mistakes in agreeing that Digi Cash's electronic payment products would only be sold to banks, causing the company to go bankrupt in 1998. Unfortunately, David Chaum could not get over it. , since we live in the digital age, it makes sense that there is some form of digital money. David Chaum's idea may not have seen continued success, but the idea of ​​digital currency did not stand still. Over time, cryptocurrencies have appeared on the market, such as Bit Gold, Bitcoin, Ethereum, and Ripple, to name a few. First of all, we were all surprised and appreciated by the fact that we don't need to go to the bank to pay our bills. . This could be done over the phone and/or online. It was therefore not an exaggeration to be surprised by digital currency. Technology is still advancing rapidly. Therefore, the idea of ​​cryptocurrency was brilliant but very problematic for 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 entities, servers or any other authority. Cryptocurrency does not belong to any strictly peer-to-peer network. We therefore understand why the adoption of cryptocurrencies would be a big challenge for the government. They would be unable to collect data on economic activity or drive the country's economy. There are many questions about the legality of cryptocurrencies and some have even been banned in some countries, but that does not stop the idea that the monetary system could change because of the crypto industry. Bitcoin, the most famous cryptocurrency, was supposedly founded by Satoshi Nakamoto in 2008 but no one really knew it at the time. Satoshi Nakamoto, aka Nick Szabo, invented bit gold but denied inventing Bitcoin. Nevertheless, Bitcoin became so popular that people all over the world started buying it, hoping to one day wake up rich. And many did, waking up the next morning with a radically changed life. In July 2010, bitcoin was valued at 8 cents, $8,100 on November 20, 2017, and $17,900 on December 15, 2017. People even started taking courses and conferences on investing in Bitcoin and other cryptocurrencies. Some have.