What is Cryptocurrency

In this digital era, we are witnessing various kinds of money formats. Till date, it is the physical form of money we have been looking into. Physical Money is something that we can create only against the amount of gold we have which decides the economy of the country.

Hence there is only a limited amount of physical money we can create. Cryptocurrency is totally different, it is an encrypted data which include a key and a password. This data is created by blockchain and a particular block is known as Cryptocurrency.

The cryptocurrency was originated with Bitcoin which is a peer – to – peer electronic cash system. This was made after people were failed to create centralized digital money. With Bitcoin, Blockchain was originated and is one of the trending topics currently.

Major Difficulty with Cryptocurrency being peer–to–peer?

When Cryptocurrency was during the phase of research, everyone was looking for a way to authenticate the transaction and make sure about the double-spending attempts. This with e-banking is done with a centralized server, which is tough to crack, but the Cryptocurrency being a decentralized thing it had not been same.

In order to get over the issue, a list of transactions is on each peer so that you can check with the transactions if they are valid or an attempt for double-spending.

With all the solutions to all the different problems emerging for the digital currency, Bitcoins and Cryptocurrency emerged.

So explaining cryptocurrency in the easiest possible way, they are simple entries in a database that no one can change without specifying a particular array of conditions. Cryptocurrencies have different values with respect to another form of physical currencies such as:

  • Controlled Supply: As we all know all the currencies are in limited supply as goes with Bitcoins, they are made only when someone needs them. Hence with coding, the future value of bitcoin can’t be simulated.
  • No Debt: As with our banks we see transactions in the ledger as debts, but with cryptocurrency, they don’t represent themselves as debt, but they are representing themselves in hand of one another. Hence we can relate them to gold coins owned by a person.

Cryptocurrency currently is a digital gold which will not change irrespective of any political or any other issue in any country. Bitcoins are going to hold the value that one has currently, and even in the future.

As of today Cryptocurrency is on a rise and will be the same. In the future, it might be that we are using cryptocurrency in daily transactions. There are many cryptocurrencies out in the market such as Bitcoins, Ethereum, Ripple, Litecoin, Monero, etc.

Have you purchased any of the recent past? Have you earned some profit from the same? What do you think cryptocurrency will head in the near future?

Do you still have any issue with regards to cryptocurrency? Do let us know in the comment section below, so we can solve the same in the future articles.