Technology

What Is Cryptocurrency?

bitcoin

It is a digital currency/ money, not a physical coin or bill secured by cryptography. No one can copy it like fiat currency, and chances of counterfeit are almost zero. Unlike traditional money transfer systems( Banks), you can transfer cryptocurrency to anyone online without going anywhere else.

cryptocurrency

Cryptocurrencies, used for fast money transfer across the world with a minimum transaction fee. One of the essential features of cryptocurrency is a “decentralized”, so any central authority can not control it.

In 2009, an anonymous person or a group of programmers named Satoshi Nakamoto introduced cryptocurrency Bitcoin as a decentralized currency so that no central authority can control it. It was a ‘peer-to-peer electronic system.

Cryptocurrency sent directly between two parties via private and public keys by avoiding third parties like traditional banking systems by giving a minimum transaction fee. 

In cryptocurrency, a transaction( file) consists of the sender’s and recipient’s public keys, i.e., wallet addresses, and the amount of coins transferred stores in blocks. It is stored in a digital wallet on the computer or stored in a hardware wallet.

How transaction/cryptocurrency is transferred?

In cryptocurrency, miners confirm transactions by solving a cryptographic algorithm. They take trades (block), then verify and spread them across the network. After that, every node of the network adds to its database. As a transaction confirms, it becomes irreversible and cannot be re-rewrite, and a miner receives a reward.

Bitcoin and Alts

bitcoin-and-altcoin

Bitcoin was the first cryptocurrency to go mainstream and called Mother currency. There are more than 4,000 different types of cryptocurrencies with their various functions and specifications. (some of these are clones or hard forks of Bitcoin) and known as Alts coins. Some popular Altcoins are :

  • Litecoin
  • ethereum
  • Xrp
  • Neo
  • Ada
  • Eos

Can You Buy Goods Or Pay With Cryptocurrency?

cryptocurrency

When Bitcoin launched in 2008, it was challenging to find any shops or merchants that accept crypto(bitcoin). Now, time has changed, and it has spread worldwide, and the situation is entirely different now. 

There are many merchants(online and offline) – that accept Bitcoin and acts as the form of payment. 

Microsoft also accepts Bitcoin as a payment. Many big companies are enduring and even working on blockchain today. 

Online retailers like Overstock, online shopping sites are also accepting crypto as a payment method. In many countries, you can use Bitcoin ATMs as well.

Bitcoin and Alts As Investment

bitcoin-and-alts-investment

Many of us know Bitcoin’s price in 2009 and witnessed the ATH( All-Time High) of Bitcoin and other Alts in 2017-18. Bitcoin is the hottest topic and investment opportunity in the world. People want to know more about the cryptocurrency market, how it works, how they can invest, and how much profit they can earn. You can find much news about becoming millionaires through their Bitcoin investments. However, cryptocurrencies are high-risk investments.

If you are looking to invest or enter the Cryptocurrency Market, you need to pay close attention to other investment platforms. It would be best to focus on cryptocurrencies’ market value and any news related to them in the crypto market. You can use “Coinmarketcap,” a one-stop solution for tracking the price, volume, circulation supply, and a market cap of most existing cryptocurrencies.

How Or From Where To Buy Bitcoin?

bitcoin

Today, it is very easy to buy Bitcoins and altcoins because in the past there were very few platforms from where we could buy. There are many exchanges where you can trade in BTC(Bitcoin) and other adults(cryptocurrencies). The trade of cryptocurrencies has improved after launching some major exchanges like Binance, Bittrex, Kraken, BitFinex, Coinbase, BitThump, and many more you can easily buy and sell bitcoin by using your credit/debit card. There are other modes also available like localetherum or local bitcoin sites from where you can also buy and sell bitcoin and ethereum.

There are several different types of cryptocurrency wallets available in the market as per your needs. You can use paper or a hardware wallet and are also ‘cold’ wallets stored on your hard drive and online portfolios. People keep their crypto on an exchange, but it is risky because exchanges may be hacked, and transactions have hacked in the past. It is right for you to invest in this market and always store your crypto in your wallet rather than keep it on exchanges.

Is Bitcoin Legal Or Where Bitcoin Is Legal?

The battle of cryptocurrencies is going on since Bitcoin has introduced. The answer to this depends on the location of the user. There are many countries in the world where Bitcoin is legal. There is no regulation system, so it’s difficult for the government to legalize it. As we know, Bitcoin not issued or regulated by any central bank. It created through a computer-generated process, i.e., mining. It is a peer-to-peer payment system and does not exist in a physical form and can’t be controlled by anyone. There are many countries where Bitcoin is legal, and in some countries it is still illegal.

Some Countries where Bitcoin & Cryptocurrency is Legal :-

  1. Japan
  2. United States
  3. Germany
  4. France
  5. Malta
  6. Canada
  7. Belarus
  8. Holland
  9. Vietnam
  10. Singapore
  11. Thailand
  12.  India (Govt. Has not declared it illegal, and the Supreme Court recently lifted the ban imposed by RBI. Now, people can buy/ sell Bitcoin by using their debit/credit cards and receive the money into their bank account).
  13. Russia

As Bitcoin is almost ten years old, many countries still do not have systems to regulate or ban the cryptocurrency. Bitcoin, is a challenge for many states to regulate it .As it is” decentralized”, transaction becomes anonymous ,and may be used in criminal activities. Many countries are still working to control the cryptocurrency.

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