All You Need to Know About Cryptocurrency and Blockchain

The financial landscape has changed due to cryptocurrency, a cryptography-protected digital currency. It offers transparent and secure transactions, operating on decentralized networks like the blockchain. Bitcoin, the pioneer, has paved the way for various alternatives, shaping the future of finance through decentralization and cryptographic principles.

This comprehensive blog post will delve deeper into the fascinating world of cryptocurrency and blockchain technology. Read on and discover the transformative power of cryptocurrency!

Definition of Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptographic techniques to secure financial transactions and create additional units.

Unlike traditional currencies that governments and central banks issue, cryptocurrencies operate on decentralized networks built on blockchain technology.

What is Cyptocurrency?

Cryptocurrency is a groundbreaking digital or virtual currency that facilitates secure and decentralized financial transactions. Unlike traditional currencies issued by governments, cryptocurrencies leverage cryptographic techniques to secure transactions and control the creation of new units.

The backbone of this innovative financial system is blockchain technology, a decentralized and transparent ledger that records all transactions across a network of computers. Bitcoin, introduced in 2009, is the pioneer in this realm, paving the way for various alternative cryptocurrencies with varying features and functionalities.

Cryptocurrencies offer a departure from the centralized control of traditional financial systems, emphasizing transparency, security, and efficiency. As this transformative technology continues to reshape the finance landscape, understanding cryptocurrency’s fundamental aspects becomes increasingly essential in navigating the evolving digital economy.

Who Created Cryptocurrency?

Using Satoshi Nakamoto’s pseudonym, someone or some group created cryptocurrency, specifically Bitcoin. The true identity of Nakamoto remains unknown, and it has sparked much speculation and intrigue within the cryptocurrency community.

Nakamoto introduced cryptocurrency in a 2008 whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” The first block of the Bitcoin blockchain, known as the genesis block, was mined in January 2009.

While Nakamoto’s identity remains a mystery, their innovative creation has had a profound impact, leading to the development of various other cryptocurrencies and laying the foundation for the broader adoption of blockchain technology in the financial world.

Examples of Cryptocurrencies

Thousands of cryptocurrencies exist, each with its own unique features and purposes. One of the best-known examples of cryptocurrencies is

Bitcoin (BTC) is the first and most famous cryptocurrency, often called digital gold.
Ethereum (ETH) is known for its smart contract fit functionality, enabling decentralized applications (DApps) creation.
Ripple Bitcoin (XRP): Primarily designed for facilitating fast and low-cost international money transfers.
Cardano (ADA): A blockchain platform focusing on scalability, sustainability, and interoperability
Polkadot (DOT): A multi-chain network that enables different blockchains to transfer messages and value.
Binance Coin (BNB): Created as a utility token for the Binance exchange, it has since expanded its use cases.

These examples represent just a fraction of the diverse range of cryptocurrencies available, each serving different purposes within the broader digital economy. The cryptocurrency landscape continues to evolve with ongoing innovations and the introduction of new projects.

What is Blockchain Technology?

Blockchain technology is a decentralized and distributed ledger system designed to record transactions across a network of computers securely and transparently. The fundamental concept revolves around creating a chain of blocks, each containing a list of transactions.

These blocks are linked together through cryptographic hashes, ensuring the integrity and immutability of the entire chain.

Here are the key components and features of blockchain technology:

Decentralization: Unlike traditional centralized systems, blockchain operates on a decentralized network of computers (nodes). This distribution prevents a single point of control or failure, enhancing security and resilience.
Consensus Mechanism: Blockchain relies on a consensus algorithm to validate and agree on the ledger’s state. Bitcoin uses proof of work, and proof of stake is another common mechanism for ensuring the validity and order of transactions.
Cryptographic Hashing: Each block contains a unique cryptographic hash generated based on the information in the previous block. This interlinking makes it extremely difficult to alter past transactions without changing subsequent blocks, enhancing security.
Immutability: Once a block is added to the blockchain, altering or deleting its information becomes nearly impossible. This immutability ensures the integrity of the transaction history.
Smart Contracts: Some blockchain platforms, like Ethereum, support smart contracts—self-executing contracts with the terms of the agreement directly written into code. These contracts automate and enforce the execution of contractual agreements.
Transparency: The entire transaction history is visible to all participants in the network. While individual identities may remain pseudonymous, the transparency of transactions contributes to accountability and trust.

Blockchain technology finds applications beyond cryptocurrency, spanning finance, the supply chain, healthcare, and more industries. Its decentralized and secure nature makes it an innovative solution for creating trust in digital interactions, reducing the need for intermediaries, and enabling new forms of collaboration and efficiency.

How Does Cryptocurrency Work?

Cryptocurrencies work through a technology called blockchain. Imagine a blockchain as a digital ledger or record book that keeps track of transactions. Here’s a simplified explanation of how cryptocurrencies work:

Decentralization: Unlike traditional money systems controlled by banks or governments, cryptocurrencies operate on a decentralized network of computers. No single entity has full control.
Transactions: A transaction is created when you want to send or receive cryptocurrency. This transaction records the transfer, including information about the sender, receiver, and amount.
Blocks: Transactions are grouped into blocks. Each block contains a list of transactions and a unique code called a cryptographic hash. The hash of each block also includes the previous block’s hash, creating a chain of blocks, hence the term “blockchain.”

Mining: It needs to be verified to add a block to the blockchain. This is often done through mining, where powerful computers solve complex mathematical problems. The first computer to solve the problem gets to add the new block to the blockchain and is rewarded with newly created cryptocurrency (this is how new coins are “mined”).
Consensus: All the computers (nodes) in the network agree on the transactions and the order in which they occur. This agreement is reached through a consensus mechanism, which can be Proof of Work (used by Bitcoin) or other methods.
Security: Changing any information in it is very difficult once a block is added to the blockchain. Cryptographic hashes and consensus mechanisms make the system secure and resistant to fraud.
Wallets: To interact with cryptocurrencies, you use a digital wallet. This wallet stores your private key, a secret code that allows you to access and manage your cryptocurrency. The public key, a kind of address, is what others use to send you cryptocurrency.

Cryptocurrencies use technology to create a secure, decentralized, and transparent system for recording and verifying transactions. The blockchain ensures the system’s integrity, and cryptography keeps the transactions and wallets secure.

Why are There so Many Cryptocurrencies on the Market?

The proliferation of cryptocurrencies can be attributed to a combination of technological innovation, the open-source nature of blockchain technology, and the desire for diverse use cases within the decentralized finance (DeFi) space.

The underlying blockchain technology enables the creation of new cryptocurrencies with unique features, functionalities, and governance structures. Entrepreneurs and developers leverage this flexibility to address specific needs, creating numerous cryptocurrencies beyond the pioneering Bitcoin.

This has led to the creation of a wide range of digital assets, such as privacy-focused coins and tokens, that make certain decentralized applications possible. This diversity reflects the experimentation and innovation within the rapidly evolving landscape of blockchain and cryptocurrency.

While abundant cryptocurrencies provide users with choices and alternatives, they also require careful consideration and due diligence. The market dynamics continue to evolve, with some cryptocurrencies gaining prominence while others fade away, reflecting the ongoing exploration and maturation of the digital finance ecosystem.

What are the Most Popular Cryptocurrencies?

Some of the most popular cryptocurrencies are as follows:

Bitcoin (BTC): Bitcoin remains the most well-known and widely used cryptocurrency. It is often called digital gold and serves as a store of value and a medium of exchange.
Ethereum (ETH): Ethereum is known for its smart contract functionality, enabling the creation of decentralized applications (DApps). It is a key player in the decentralized finance (DeFi) space.
Binance Coin (BNB): Created as a utility token for the Binance exchange, BNB has expanded its use cases, including participation in token sales and transactions within the Binance Smart Chain.
Cardano (ADA): Cardano is a blockchain platform focusing on scalability, sustainability, and interoperability. It aims to provide a more secure and sustainable platform for developing smart contracts.
Ripple (XRP): Ripple is designed for fast, low-cost international money transfers. It has found applications in the traditional financial sector for cross-border payments.
Litecoin (LTC): Often considered the silver to Bitcoin’s gold, Litecoin is known for its quicker transaction confirmation times and is used for peer-to-peer transactions.

Please note that various factors, including technological developments, market trends, regulatory changes, and community sentiment, can influence the popularity of cryptocurrencies.

Why are People Buying Cryptocurrencies?

People purchase cryptocurrencies for various reasons, including investment opportunities, technological interest, and a desire for financial privacy. One of the primary motivations is the potential for high returns on investment.

Cryptocurrencies have experienced significant price volatility, attracting speculative investors hoping to capitalize on price fluctuations. Additionally, some view cryptocurrencies as a hedge against traditional financial market risks and inflation, given their decentralized nature and finite supply, as seen in the case of Bitcoin.

Technological enthusiasts are drawn to the innovative aspects of blockchain technology, which underlie cryptocurrencies and their potential to revolutionize various industries. Furthermore, many cryptocurrencies’ decentralized and pseudonymous nature appeals to those seeking financial privacy and autonomy from traditional banking systems.

Overall, the reasons for buying cryptocurrencies are diverse, ranging from financial investment and speculation to a belief in the transformative power of blockchain technology.

How to Buy Cryptocurrencies?

Buying cryptocurrencies involves several steps, and the process may vary depending on your location and the cryptocurrency exchange you choose. Here’s a general guide on how to buy cryptocurrencies:

Eeducate Yourself.

Before you start buying cryptocurrencies, you must educate yourself about the specific cryptocurrencies you are interested in, their technology, and the risks involved in the market.

Choose a Cryptocurrency Exchange:

SelectSelect is a reputable cryptocurrency exchange that facilitates buying and selling digital assets. Some popular exchanges include Coinbase, Binance, Kraken, and Gemini. Ensure the exchange supports the cryptocurrency you want to buy.

Create an Account.

Sign up for an account on the chosen cryptocurrency exchange. This typically involves providing an email address, creating a password, and completing any identity verification procedures required by the exchange.

Deposit Funds:

Deposit funds into your exchange account. Most exchanges accept fiat currency deposits (USD, EUR, etc.) or other cryptocurrencies. Follow the deposit instructions provided by the exchange.

Choose your Cryptocurrency:

Once your account is funded, navigate to the trading platform and select the cryptocurrency you want to buy. Common choices include Bitcoin (BTC) or Ethereum (ETH).

Place an Order:

Decide whether you want to place a market order (buy at the current market price) or a limit order (set a specific price at which you want to buy). Enter the amount of cryptocurrency you wish to purchase.

Review and Confirm:

Review your order details and confirm the transaction. Ensure all the information is accurate before finalizing the purchase.

Remember that the process may vary slightly between exchanges, and additional steps may be required for certain cryptocurrencies. Always use secure practices, such as keeping your private keys secure and using reputable exchanges with a good track record.

If you need more clarification, seek guidance from trusted sources or consult with experienced individuals in the cryptocurrency community.

The Best Cryptocurrency Exchanges

Here are the five reputable cryptocurrency exchanges that have been well-regarded in the crypto industry:

CoinBase

Coinbase is known for its user-friendly interface, making it suitable for beginners.
It supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others.
Coinbase offers a simple brokerage service (Coinbase) and a more advanced trading platform (Coinbase Pro).

Kraken

Kraken is known for its strong security features and a wide selection of cryptocurrencies.
It offers a variety of trading pairs, including fiat-to-crypto and crypto-to-crypto.
Kraken’s interface caters to both beginners and advanced traders.

Gemini

The Winklevoss twins founded Gemini, a U.S.-based exchange well-known for its regulatory adherence.
It offers a user-friendly platform for buying, selling, and storing cryptocurrencies.
Gemini is particularly popular among users seeking a secure and regulated exchange.

Bitstamp

Bitstamp is one of the longest-standing cryptocurrency exchanges, established in 2011.
It is known for its reliability, security, and ease of use.
Bitstamp supports a range of fiat currencies and provides a selection of major cryptocurrencies for trading.

Binance

Binance is one of the largest cryptocurrency exchanges globally in terms of trading volume.
It provides a wide range of cryptocurrencies and has advanced trading features on Binance Futures.
Binance also has a user-friendly platform for beginners (Binance Lite).

Please note that the cryptocurrency market and the popularity of exchanges can evolve, and new information may emerge daily. It’s advisable to check recent reviews, user feedback, and the latest features of exchanges before making a decision.

Additionally, consider security features, available trading pairs, fees, and regulatory compliance when choosing a cryptocurrency exchange.

What can You Buy with Cryptocurrency?

The adoption of cryptocurrencies as a means of payment has been growing, and you can use them to purchase various goods and services.

However, the acceptance of cryptocurrencies may vary depending on the region and the specific businesses. Here are some common things you can buy with cryptocurrencies:

Online Retailers: Some online retailers and e-commerce platforms accept cryptocurrencies as payment for various products, including electronics, clothing, and household items.
Travel and Accommodation: Certain travel agencies, airlines, and hotel chains accept cryptocurrencies for booking flights, accommodations, and other travel-related services.
Gift Cards: Many platforms allow you to purchase gift cards for popular retailers and services using cryptocurrencies. This enables you to use cryptocurrencies at a wide range of establishments indirectly.
Food and Beverages: Some restaurants, cafes, and bars accept cryptocurrencies as payment for meals and beverages. This is more common in certain regions and among specific establishments that embrace digital currencies.
Digital Products and Services: Cryptocurrencies are widely accepted for purchasing digital goods and services, such as software, online subscriptions, and digital content.
Real Estate: In some cases, real estate transactions can be facilitated using cryptocurrencies. This includes buying homes, land, or other properties.
Art and Collectibles: Some artists and platforms that sell art and collectibles accept cryptocurrencies. This includes digital art and physical items.
Gaming: Cryptocurrencies are used in the gaming industry for in-game purchases, virtual items, and gaming hardware.
Educational Services: Certain educational institutions and online learning platforms accept cryptocurrencies for tuition fees and course payments.

It’s important to note that accepting cryptocurrencies is not universal, and you should verify whether a specific merchant or service provider supports the digital currency you want to use.

What is Cryptocurrency Mining?

Cryptocurrency mining is the process by which new digital coins are created, and transactions are verified on a blockchain network. Miners use powerful computers to solve complex mathematical puzzles, validating and securing transactions.

Once a miner successfully solves a puzzle, they add a new block to the blockchain and are rewarded with newly minted cryptocurrency coins. This process, known as proof-of-work, not only creates new coins but also ensures the integrity and decentralization of the cryptocurrency network.

Mining plays a crucial role in maintaining the security and transparency of blockchain systems, such as Bitcoin, by preventing double-spending and ensuring consensus among network participants. However, it needs a lot of computing power.

As cryptocurrencies develop, different consensus mechanisms, such as proof-of-stake, are being looked into to address environmental concerns about mining processes that use a lot of energy.

How to Store Cryptocurrency?

Storing cryptocurrency securely safeguards your digital assets from theft or loss. There are different types of cryptocurrency wallets, each with its level of security and convenience. Here are some common methods for storing cryptocurrencies:

Software Wallets:

Desktop Wallets: Software applications installed on your computer provide a good balance between security and convenience. Examples include Electrum (Bitcoin) and Exodus (multiple cryptocurrencies).
Mobile wallets are apps installed on your smartphone. They are convenient for everyday use but may be more susceptible to malware. Examples include Trust Wallet (multiple cryptocurrencies) and MyEtherWallet (ethereum-based tokens).

Online Wallets (Web Wallets):

Wallets are hosted on online platforms. While convenient, they are considered less secure because the private keys are stored on third-party servers. Examples include Coinbase, Binance, and Blockchain.info.

Hardware Wallets:

Physical devices are explicitly designed for securely storing private keys offline. They are considered highly secure as they are less susceptible to hacking. Examples include Ledger Nano S, Ledger Nano X, and Trezor.

Paper Wallets:

A physical document containing your cryptocurrency address and private key. This can be generated offline for enhanced security. However, keeping the physical document safe from damage or loss is crucial.

Metal Wallets:

Similar to paper wallets, they are made of metal, offering durability and protection against physical damage or environmental factors. They often come with recovery seed phrases stamped or engraved.

Brain Wallets:

A method of memorizing a passphrase as a seed for a wallet While this can eliminate the need for physical storage, it also introduces risks if the passphrase is forgotten or compromised.

Remember, the security of your cryptocurrency ultimately depends on your actions and the precautions you take. Always prioritize security and stay informed about best practices for securing your digital assets.

Pros and Cons of Cryptocurrencies

Pros of Cryptocurrencies:

Decentralization:

Cryptocurrencies operate on decentralized networks, reducing the control and influence of central authorities like governments and banks.

Financial Inclusion:

Cryptocurrencies can provide financial services to unbanked and underbanked populations, offering participation in the global economy.

Security:

Cryptographic techniques secure transactions, making it challenging for unauthorized parties to alter or counterfeit transactions.

Global Accessibility:

Cryptocurrencies can be sent and received anywhere worldwide, enabling cross-border transactions without traditional banking systems.

Transparency:

Blockchain technology ensures transparency and immutability of transactions, providing a verifiable and traceable record of all activities on the network.

Innovation:

The cryptocurrency space fosters innovation with ongoing developments such as smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs).

Reduced transaction costs:

Cryptocurrency transactions can be more cost-effective, especially for international transfers, as they may bypass traditional financial intermediaries.

Cons of Cryptocurrencies:

Volatility:

Cryptocurrencies are known for their price volatility, which can result in substantial gains and significant losses for investors.

Regulatory Uncertainty:

The regulatory environment for cryptocurrencies is evolving, leading to uncertainty and potential legal challenges for users and businesses.

Security Risks:

While blockchain is secure, individual wallets and exchanges may be susceptible to hacking, phishing, or other security breaches.

Limited Acceptance:

Despite increasing acceptance, cryptocurrencies are only sometimes recognized as legal tender, limiting their use in everyday transactions.

Irreversibility of Transactions:

Cryptocurrency transactions are irreversible. Once confirmed, they cannot be undone, leading to potential loss in the event of errors.

Environmental Impact:

Proof-of-Work (PoW) consensus mechanisms, used by some cryptocurrencies like Bitcoin, consume significant energy, raising environmental concerns.

Lack of Consumer Protection:

Unlike traditional banks, cryptocurrency transactions are generally irreversible, and users have limited recourse in the event of fraud or mistakes.

Perception and Trust:

Cryptocurrencies may still face skepticism and a lack of trust from the general public due to associations with illicit activities, market manipulation, and scams.

It’s essential to consider both the advantages and challenges of cryptocurrencies when evaluating their use and potential impact on personal or business activities. The cryptocurrency landscape is dynamic, and the factors influencing it can change over time.

Is Cryptocurrency a Safe Investment?

Cryptocurrency investments come with risks due to market volatility, a lack of regulatory oversight, and security concerns. While some investors have gained significant returns, the unpredictable nature of the market makes it inherently risky.

It’s crucial to conduct thorough research, stay informed, and only invest what one can afford to lose. Diversification and professional financial advice are recommended to manage risks effectively.

Cryptocurrency investments can be rewarding, but they come with inherent risks. It’s essential to stay informed, exercise caution, and, if needed, seek advice from financial professionals before making investment decisions.

Are Cryptocurrencies Legal?

The legal status of cryptocurrencies varies from country to country, and regulations are continually evolving.

It’s crucial to stay informed about the legal status of cryptocurrencies in your specific jurisdiction, as regulations can change.

Governments and regulatory bodies are adapting to the dynamic nature of the cryptocurrency space, addressing issues related to consumer protection, financial stability, and preventing illicit activities.

Before engaging in cryptocurrency-related activities, individuals and businesses should check with local authorities and legal experts to ensure compliance with current regulations.

Online Cryptocurrency Frauds and Scams

Unfortunately, cryptocurrency fraud and scams are prevalent due to the industry’s relatively new and decentralized nature. Individuals should be vigilant and informed to avoid falling victim to these schemes. Here are some common online cryptocurrency frauds and scams:

Phishing Scams:

Description: Phishing involves creating fake websites or emails that mimic legitimate cryptocurrency platforms or wallets. Users are tricked into entering their private keys or login credentials, which are stolen.
Prevention: Always double-check URLs, enable two-factor authentication, and avoid unsolicited emails or messages.

Ponzi and Pyramid Schemes:

Description: Fraudsters promise high returns with little risk, often relying on new investors’ funds to pay returns to earlier investors. These schemes eventually collapse, leaving many participants with losses.
Prevention: Be skeptical of investment opportunities that promise guaranteed high returns, and conduct thorough research before investing.

Fake Initial Coin Offerings (ICOs):

Description: Scammers create fake ICOs or token sales, enticing investors to buy non-existent or worthless tokens. After collecting funds, they disappear.
Prevention: Verify the legitimacy of ICOs by researching the project, team, and reviews from reputable sources.

Fake Wallets:

Description: Fraudulent wallet apps may appear legitimate but are designed to steal users’ private keys or seed phrases.
Prevention: Only use well-known and reputable wallet providers and download wallets from official sources.

Cryptojacking:

Description: Malicious software is used to hijack a user’s computer or device to mine cryptocurrency without their knowledge or consent.
Prevention: Use reputable antivirus software, keep systems updated, and avoid clicking on suspicious links.

Impersonation and Fake Airdrops:

Description: Scammers create fake social media profiles or websites claiming to represent a legitimate project and offer free tokens in airdrops. Users are asked to provide private keys or pay fees.
Prevention: Verify the authenticity of airdrops from official project channels and never share private keys.

Final Thoughts

In conclusion, the world of cryptocurrencies is dynamic and multifaceted. While offering exciting opportunities, it demands a thoughtful and informed approach.

Whether as a tool for financial empowerment, a driver of innovation, or a subject of regulatory scrutiny, cryptocurrencies are undeniably shaping the future of how we conceive and interact with value and technology.

As developments unfold, staying engaged, educated, and aware will be key to responsibly navigating the evolving landscape of cryptocurrencies.

Frequently Asked Questions

What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates on decentralized networks based on blockchain technology.

Who created cryptocurrency?

In 2009, an unidentified person or group used Satoshi Nakamoto’s pseudonym to create Bitcoin, the first cryptocurrency. The identity of Nakamoto remains a mystery.

How do cryptocurrencies work?

Cryptocurrencies work on blockchain technology, a decentralized and distributed ledger. Through consensus mechanisms like Proof of Work or Proof of Stake, a network of computers (nodes) verifies transactions.

How can I buy cryptocurrencies?

Cryptocurrencies can be purchased using fiat or other cryptocurrencies on cryptocurrency exchanges. Popular exchanges include Coinbase, Binance, and Kraken.

What are the types of cryptocurrencies?

There are thousands of cryptocurrencies, including Bitcoin, Ethereum, Ripple (XRP), Litecoin, and many others. They can be categorized as coins or tokens, each serving different purposes.

What is blockchain technology?

A blockchain is a decentralized and distributed ledger that records transactions across a network of computers. It ensures transparency, security, and the immutability of data.

Why are there so many cryptocurrencies?

Various cryptocurrencies arise from different use cases, technologies, and ideologies. Each cryptocurrency aims to address specific challenges or provide unique functionalities.

Are cryptocurrencies legal?

The legal status of cryptocurrencies varies globally. Some countries recognize and regulate them, while others impose restrictions or declare them illegal. Regulations continue to evolve.

How do I store cryptocurrencies?

Cryptocurrencies are stored in digital wallets. Wallets can be software-based (online, desktop, or mobile), hardware-based (physical devices), or paper wallets (physical documents).

What is mining in cryptocurrency?

Mining is validating transactions on a blockchain network. Miners use computational power to solve complex mathematical puzzles, adding new blocks to the blockchain and earning rewards.

What are the risks of investing in cryptocurrencies?

Risks include market volatility, regulatory uncertainties, security concerns (e.g., hacking), and the potential for loss of funds. It’s essential to conduct thorough research and understand the risks before investing.

Can cryptocurrencies be traded?

Yes, cryptocurrencies can be traded on various exchanges. Traders buy and sell cryptocurrencies to exploit price fluctuations and generate profits.

What is decentralized finance (DeFi)?

DeFi refers to decentralized financial services and applications built on blockchain technology. It aims to recreate traditional financial systems without relying on central authorities.

How can I protect myself from cryptocurrency scams?

Practice cautious online behaviour, use secure wallets, enable two-factor authentication, and be sceptical of unsolicited offers or investment opportunities. Stay informed about common scams.

What are Initial Coin Offerings (ICOs)?

ICOs are fundraising methods where new cryptocurrency projects sell tokens to investors before the official launch. Investors receive tokens with the expectation that their value will increase over time.