According to Andy Greenberg, “A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, control the creation of additional units, and verify the transfer of assets.”
Now to a layman’s definition of cryptocurrency. A crypto currency is digital money that exists only in computers with transaction records kept by a network of computers that aren’t controlled by any single person or entity. It is exchanged from one person to another, online.
Furthermore, a cryptocurrency has global value and is not restricted to any country. Its value of exchange is recognized worldwide. It’s private because accounts are encrypted and no one uses real names for transactions. Every user has codes attached to their accounts.
The great thing about cryptocurrency is that it’s decentralized and there’s no bank in charge of people’s money. Every individual is in control of her money; there’s no central server where the money is kept and managed. Above all, it’s a system where no trust is required. There’s no one on whom the burden of trust is placed to make the system work.
Investors That Have Made It Big With Cryptocurrencies
Cryptocurrencies have been around for a while now, but they are only beginning to gain popularity in recent times. While many still don’t understand it, a number of people have already made fortunes investing in cryptocurrencies, or even betting on Bitcoin gambling websites. BitFortune.net lists a few of them in their Crypto Kings infographic, so below we’re going to discuss their respective accomplishments in detail:
- Chris Larsen – The 57 year old is of American descent and one of the veterans in the tech industry. He has a bachelor’s degree in Accounting and Finance from San Francisco State University and MBA from Stanford University.
Before he ventured into cryptocurrency he was the CEO of E-Loan, an online platform that matched borrowers and lenders. These lenders usually make funds available to borrowers faster with lower interest rates than banks. That’s what makes it more appealing to borrowers than banks.
His profile also credits E-Loan with the initiation of open access to credit scores. This is said to have been achieved by showing customers their FICO points.
In 2005, he co-founded Prosper, also a peer-to-peer online lending marketplace. From prosper he moved on to OpenLabs in 2012 and then to Ripples Labs.
His financial background and experience, coupled with his affiliation to the banking sector, is a huge advantage. It undoubtedly gave Ripple and its XRP a strong standing in the still turbulent playing field of cryptocurrency. He is currently worth $7.5 to $8 billion in cryptocurrencies.
- Changpeng Zhao, aka CZ – The 41 year old Chinese-Canadian is a coder of no mean repute. He has a degree in computer science from McGill University in Canada. He has made between $1.1 and $ 2 billion in cryptocurrency and is the CEO of Binance, a cryptocurrency exchange company.
He started off as a coder for the Tokyo Stock Exchange, working on its trading systems. He then moved on to develop a software for future trading for Bloomberg’s Tradebook. With experience gained from both firms and cities, he moved to Shanghai to start Fusion Systems. Fusion Systems specialized in developing high frequency technology for brokers.
In 2013, he found his niche when he learned about Bitcoin, but didn’t launch his company Binance until 2017. Between learning about Bitcoin and starting Binance, he was involved in Blockchain.info and BijieTech.
Zhao claims that “No decentralized exchange today can handle its volume, and none are as secure as it is”. His company’s latest creation is software that supports cryptocurrencies by creating a public blockchain that’s decentralized. This ensures extra security from hackers and cyber thieves.
- Joseph Lubin – He is a Canadian resident in New York. He has a degree in electrical engineering and computer science from Princeton University. He started his career working in software engineering, robotics, neural nets, and machine vision. From there he moved on to the finance sector where he built trading systems, ran hedge funds, and worked for Goldman Sachs. He also ventured into music management in Jamaica.
The 53 year old Lubin is the founder of ConsenSys, an employer of over 600 people. ConsenSys acts as a “venture production studio” for the Ethereum ecosystem. He committed to support the Ethereum project in 2014.
He is the major stakeholder in ConsenSys which provides token launches, security audits, and allied services to conventional companies. He is currently worth between $1 and $5 billion in cryptocurrencies.
- Matthew Roszak – The 45 year old American was a tech entrepreneur and co-founder of software companies before venturing into cryptocurrencies. He spent more than 20 years in venture capital and private equity.
He has worked with Keystone Capital Partners, Advent International, SilkRoad Equity, and Platinum Venture Partners. His investment covers a wide range of industries and is in excess of $1 billion. The companies he co-founded and is involved in include Bloq, Tally Capital, Enter Financial, Eboost, Neu Entity, MissionMode, Onramp, TrueLook, and SolidSpace. His current crypto net worth is between $900 million and $1 billon.