Glossary of Cryptocurrency Terms – Letters “H” and “I”
Confused by all the cryptocurrency terms out there? Dive into our easy-to-understand glossary. This week, the letters H and I.
Hal Finney: Hal Finney was a cryptographer and programmer who pioneered the development of Bitcoin and worked with Satoshi Nakamoto. Sadly, Hal Finney died in Phoenix, Arizona on August 28, 2014 from complications from ALS and was cryopreserved by the Alcor Life Extension Foundation. He was the recipient of the first bitcoin transaction when Satoshi Nakamoto sent him ten coins as a test, the amount at the time was worth next to nothing.
Reduce by half: A bitcoin halving event occurs when the reward for bitcoin mining transactions is halved. This event also halves bitcoin’s inflation rate and the rate at which new bitcoins come into circulation. The halving occurs approximately every 4 years or more precisely every 210,000 blocks.
hard cap: A hard cap is the absolute maximum supply of a digital asset. For example, the hard cap for bitcoin is 21,000,000 bitcoin.
Hardware Wallet: A hardware wallet is a wallet for cryptocurrencies that usually looks like a USB key. Trezor and Ledger are examples of hardware wallets.
Hash rate: The hash rate is the unit of measurement of the processing power of the Bitcoin network. The Bitcoin network must perform intensive mathematical operations for security purposes. When the network reached a hash rate of 10 Th/s, that meant it could perform 10 trillion calculations per second.
HD Wallet: An HD Wallet, or Hierarchical Deterministic Wallet, is a new era digital wallet that automatically generates a hierarchical tree structure of private/public addresses (or keys). Upon creation, HD wallets also create a 12 or 24 word seed phrase which can be used to recreate the wallet.
HODL: “Hodl” is meant to encourage people not to sell on impulse when a cryptocurrency drops dramatically or rises to become very profitable to sell. “HODL” also acts as an acronym for “Hold on for dear life”. You will often see the term in various cryptocurrency forums and social media circles. The term originated in 2013 with a misspelling for HOLD on the bitcointalk forum.
Hosted Wallet: A wallet managed by a third-party service.
Hot storage: Online storage of private keys allowing faster access to crypto-currencies. It is never advisable to store large amounts of cryptocurrency on hot storage.
Hot Wallet: An internet-connected cryptocurrency wallet for hot storage of crypto-assets, as opposed to an offline cold wallet with cold storage.
Howey test: The Howey test refers to the ruling of the United States Supreme Court to determine whether a transaction is considered an “investment contract” and, therefore, would be considered a security and subject to the disclosure requirements and registration under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Hyperbitcoinization: The inflection point at which bitcoin becomes the world’s preferred medium of exchange.
ICO: An event in which a company (usually a start-up) attempted to raise capital by selling a new cryptocurrency, which investors can buy in the hope that the value of the cryptocurrency will increase, or to redeem later for services offered by that company. Be aware that there are many fraudulent ICOs, i.e. without a roadmap, without a white paper, or that disproportionately favor the development team.
Initial Dex Offer: An initial dex offering (IDX) is an alternative to an initial coin offering (ICO).
Initial Exchange Offer: A type of crowdfunding where crypto start-ups generate capital by signing up through an exchange.
Initial public offering (IPO): An initial public offering (IPO) is the process by which a company offers shares for purchase on the stock market for the first time.
Initial Token Offering (ITO): ITOs are similar to Initial Coin Offerings, but focus more on offering tokens with intrinsic utility in the form of software or use in an ecosystem.
Insider trading: Insider trading occurs when a person buys or sells stocks while possessing material private information about those stocks.
Instaminate: When a large portion of a coin’s total supply is distributed to investors shortly after its launch.
Insurance fund: An exchange insurance fund is used to cover unexpected losses from leveraged trading. This fund is used to avoid the bankruptcy of traders in the event of liquidations.
Interplanetary File System (IPFS): The InterPlatery File System is a peer-to-peer distributed system for storing and accessing files, as well as websites and applications, that is based on content addressing rather than location.
Intercontinental Exchange (ICE): The Intercontinental Exchange (ICE) is an American company founded in 2000 to buy and operate global exchanges and clearing houses.
Interest rate: A time dependent charge or return made in proportion to the amount of money deposited, borrowed or lent.
Intermediate / Intermediate: A person or entity that acts as an intermediary between different parties to reach agreements or carry out directives.
internet of things: The Internet of Things (IoT) is an interconnected global network of devices, sensors, and software that can collect and exchange data with each other in real time over the Internet.
Intrinsic value: The intrinsic value of an asset represents the actual value of the asset based on a complex financial calculation rather than its current price.
Invest: Investing is when you put money into a financial plan with the intention of making a profit.
By Stephen Whitelaw (https://bringbackmycrypto.com)