A
cryptocurrency is a decentralized digital currency, and an encrypted digital
asset designed to work as a medium of exchange confirmed in a public ledger via
a process known as mining and transferred between peers.
The
cryptocurrency uses strong cryptography to secure financial transactions,
verify the transfer of assets and control the creation of additional units.
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| What is a cryptocurrency and why should we use it? |
What is Cryptocurrency
and How Does It Work? Why Do We Use Cryptocurrencies?
What is Cryptocurrency?
A cryptocurrency is a form of
digital money that is designed to be safe. In many cases, the cryptocurrency
is unknown.
This currency is linked to the
Internet that uses encryption, the process of converting readable information
into an almost non-traceable code, to track purchases and transfers.
Cryptocurrencies are created
through a process called mining, involving the use of computer power to solve
complex math problems that generate money.
Users can also buy currencies from
intermediaries, then store them and spend them using encryption portfolios.
Cryptocurrency and Blockchain
technological applications are still financially viable and expect to have more
uses, and can ultimately trade transactions including bonds, stocks and other
financial assets using technology.
History of Cryptocurrency
Cryptography was born from the need
for safe communication in World War II and evolved into a digital age with
elements of mathematical theory and computer science to become a means of
securing communication, information, and money on the Internet.
The first cryptocurrency
is Bitcoin, which was created in 2009 and is still the most famous and has
been proliferated through hidden operations in the last decade.
There are now more than 900
currencies available on the Internet. So what is the Bitcoin?
Here's all you need to know about
Bitcoin cryptocurrency.
How Does Cryptocurrency Work?
Cryptocurrency uses decentralized
technology to allow users to make secure payments and store money without the
need to use their name or through the bank.
Cryptocurrency operates on a
distributed general ledger called Blockchain, a record of all transactions that
have been updated and held from the currency holders.
Frequently Asked Questions about Bitcoin
What is Bitcoin?
Bitcoin is a digital currency used
to pay any value without fees.
Bitcoin works on the Blockchain, a
decentralized ledger that was run by the "miners" until they were
crushed by powerful computer owners and stuffed with bitcoins.
Who invented Bitcoin?
Satoshi Nakamoto, a world's most
elusive billionaire, who invented the Bitcoin in 2008 before going online in
2009, has made numerous attempts to determine who Satoshi is without conclusive
evidence.
What was the most compelling purpose for
Bitcoin?
People see value for money free of
control, government fees and bank fees, in addition to the Qin Block, to verify
transactions.
Bitcoin has been seen as a tool for
private transactions, anonymous, and unfortunately, it is the option to pay
drug contracts and other illegal procurement.
What are the most common cryptocurrencies?
Bitcoin: Bitcoin was the first cryptocurrency and the most heavily traded so
far.
The coin was developed by Satoshi
Nakamoto in 2009, a mysterious character developed by Blockchain, with a market
capitalization of about US $ 45 billion as of July 2017.
According to CoinDeskIn, in
November 2017, 1 Bitcoin value was about $5,800.
The 2018 Bitcoin crash comes half a
year after the value of many has risen.
At its peak last December, the
Bitcoin traded as high as $ 19,783.In April 2019, its worth is about $ 5068.50.
Ethereum: Ethereum was developed in 2015, Ethereum is the currency
symbol used in the Ethereum Blockchain, which is the second cryptocurrency
after the most popular and most valuable Bitcoin.
Ethereum has a market value of
about 18 billion US dollars as of July 2017.
After splitting for two currencies
in 2016 and falling to 10 cents after they were $ 400.
In April 2019, 1 ETH is equal to
$162.8.
Ripple (payment
protocol): Ripple is the last
currency of a distributed ledger system.
The currency was established in
2012, and the index can be used to track many types of transactions, not only
as a cryptocurrency, and has been used by banks including Santander bank and
OBC Net Banking.
The currency has a market value of
about 6.3 billion US dollars.
Litecoin: This currency is most similar to the form of Bitcoin, but
this currency moved more quickly to develop new innovations, including payments
and faster operations to allow for many transactions, the total value of the
currency of Litecoin is about 2.1 billion US dollars.
In April 2019, 1 Litecoin is worth
$78.5.
Why Should We Use Cryptocurrency?
Cryptocurrencies are known to be
safe and provide a level of anonymity. Transactions cannot be falsified or
reversed, and fees are low, making them more reliable than conventional
currency.
Their decentralized nature means
that they are available to all.
Banks can be exclusive in those who
are allowed to open accounts.
As a new form of criticism, it has
become known that cryptocurrency markets have been launched, which means that a
small investment can become a large sum after overnight.
Conversely, people believe that investment in Cryptocurrencies, which is one alternative investments today, should be aware of market volatility and that risks must be taken into account when purchasing.
Cryptocurrencies due to the level of
anonymity are often associated with illegal activities, especially on the dark
side of the Internet, so users should be cautious when dealing with meanings
and indications when buying currencies.