elcome to the world of CRYPTOCURRENCY.
The appearance of cryptocurrency has excited the world for a few years now. Everybody has heard about them and everybody wants to have some of them lately. When you think, they made a very good name for themselves. We would like to hire their “pr”.
But what does a cryptocurrency mean actually?
Cryptocurrencies are a new type of digital money that is completely controlled by their owners.
It uses cryptography for greater security. That’s why it is difficult to counterfeit precisely because of this security feature.
A defining feature of all cryptocurrencies is their organic nature. They are not issued by any central government, which makes them immune to government interference or manipulation.
Because they are beyond the reach of governments and intermediaries, they allow direct trade, direct payments, savings and much more. The more people use and own it, the more useful it becomes.
Because there is no central controlling authority, cryptocurrency is known as a decentralized system without the need for permission. Bitcoin is the first and most widely traded cryptocurrency to date, which also made bitcoin the first world currency that is not controlled by any country or other entity.
Cryptocurrencies work on a distributed public ledger called a blockchain, which is a record of all transactions updated and held by currency holders.
The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network.
Until now you might be thinking that they are ideal mean for transactions or exchange, because of their portability and transparency.
In fact, many experts believe that cryptocurrencies are bad for the world of finance. They are blamed to be responsible for illegal activities and they are not very liked because of their exchange rate volatility.
Let’s get to know how these cryptocurrencies actually work.