Definition Of Cryptocurrency
Cryptocurrency is basically the digital form of money. As we are in the digital era, Cryptocurrency might take over hard cash in the future. We are stepping into something where the money comes under no government rules. You should have enough knowledge to jump into it as it’s very complex.
We already know how to use currency digitally. You use debit cards or G-Pay to transfer money digitally to buy things. The difference between these two things is you can get hard cash from your bank when you are using a debit card or some other app but you can’t get cash out of cryptocurrency. Unlike the Euro, Dollar and rupees crypto coins are also money which is stored in a digital database. Bitcoin is a form of Cryptocurrency. Every bitcoin is different as it has its own database. It is called a Blockchain or a ledger. It can be tracked by its activity. It can be hard to use cryptocurrencies everywhere as there are only a few companies who are accepting them. A few days back Tesla announced it would accept Cryptocurrency. There was hype when it came from Elon Musk. Suddenly the value of cryptocurrency increased.
How Cryptocurrency Works?
A distributed public ledger known as blockchain, which is updated and maintained by currency holders, is the foundation of cryptocurrencies.
Through a process known as mining, which employs computer power to solve challenging mathematical problems, units of Bitcoin are created. Additionally, users have the option of purchasing the currencies from brokers, then storing and spending them in digital wallets.
When you hold cryptocurrencies, you don’t actually own anything. What you possess is a key that enables you to transfer a record or a unit of measurement between people without the use of a reliable third party.
Despite the fact that Bitcoin has been available since 2009, the financial applications of cryptocurrencies and blockchain technology are constantly developing, and more are anticipated in the future. The technology could someday be used to trade bonds, equities, and other financial assets.
Examples Of Cryptocurrency
Numerous cryptocurrencies are present. Among the most well-known are:
The original cryptocurrency and still the most traded, Bitcoin was established in 2009. The person or group whose specific identity is still unknown, usually regarded as a pseudonym Satoshi Nakamoto, is credited with creating the money.
Ethereum, a blockchain platform created in 2015, has its own digital currency called Ether (ETH), also known as Ethereum. After Bitcoin, it is the most widely used cryptocurrency.
Despite moving more quickly to develop new ideas, such as speedier payments and processes to allow more transactions, this money is most comparable to bitcoin.
A distributed ledger system called Ripple was created in 2012. Ripple is a tool that can be used to track more than just cryptocurrency transactions. The organization that created it has collaborated with numerous banks and financial organizations.
The term “altcoins” is used to distinguish non-Bitcoin cryptocurrencies from the original.
Future of Crypto Currency
As of now, it seems that this is the future and people have already started investing in it. It can be used in two ways. Either one can use it like any other fiat currency or one can invest in it for the future. If we dive into it and give a closer look there is a possibility that the world will run on a single currency as it doesn’t come under any country or any regulations. What we see now is that the value of money differs in every country. We can expect a world where 1 dollar=1euro=1ruppee.