What is Cryptocurrency and How Does it Work? A Comprehensive Guide.

 

Hey guys. I hope you all are having a good time. 

Do you guys also have a question like 

1) What is Cryptocurrency?

2) What is Cryptocurrency mining?

3) What is Cryptocurrency trading?

4) What is Cryptocurrency used for?

Do you guys know about Cryptocurrency? Do you guys hear about Bitcoin, Ethereum, Trx, Usdt, and many more? Yes, these all are part of Cryptocurrency. There are many people around us who want to know about Cryptocurrency. Let's talk something about Cryptocurrency.

The Beginner's Guide to Investing in Bitcoin and Other Cryptocurrencies.

 

Imagine you are having a conversation with your friends now at some point in this conversation. Someone's going to bring up cryptocurrencies now. Cryptocurrencies are something that everyone wants to talk about, but no one knows how they work, so today, I'm going to fix that. I am route from simply learning, and this is Cryptocurrency explained for you guys. Since man-world currency has an essential part of our lives in the caveman era, they used the barter system. Now barter system involves goods and services being exchanged among each other so now we have a situation where a caveman is exchanging seven apples and getting oranges in return. Now the barter system falls out of use because it has some glaring flaws. Now, these flaws include having people's requirements coincide, for example, say you have five apples, and your friend has five oranges, you want some of his oranges. Now until and unless your friend requires the apples that you own, he'll not be ready to make an exchange, for there is no common measure of value. Now since there is no common measure in terms of which the value of a commodity can be expressed. There is a problem when you have to decide how many apples you are ready to trade for one orange or mango, and not all codes can be divided or subdivided. For example, you can divide a live animal into different smaller units. The goods cannot be transported easily, unlike our modern currency fits in your wallet or your mobile phone; the goods that you own cannot be taken with you everywhere you go. After realizing that the barter system then worked very well, the currency went through a few iterations in 110 BC; an official currency was minted thousand 250AD gold-plated Florence was introduced.

And this was used across Europe, and from 1680 to 1980, the paper currency gained widespread popularity and was used across the world. This is how modern currency as we know it came into existence. Modern currency included paper currency and coins, credit, and digital wallets. For example, you have Apple pay, Amazon pay, Google pay, PayPal, and so on. All of this was controlled by banks and governments. Now this means that there was a centralized regulatory authority that delimited how paper currency and credit cards worked. Now imagine the scenario of an online transaction here you are thanking your friend for paying for your launch. You are saying that you are sending the money to their account. Now, this transaction takes place successfully. But there are several ways where this could have gone wrong. They could have been a technical issue at the bank. For example, the systems have to debug the problem; the machines weren't working properly, and so on. That means there's a central point of failure, which is the bank. The user accounts could have gotten hacked; for example, they could have been DDos attack or identity theft, and so on. Or the transfer limit for that account was exceeded. This is why the future of currency lies with Cryptocurrency. Now imagine the transaction between two people one of them has the Bitcoin app, and there's a notification asking whether they are sure they're ready to transfer five bitcoins. If yes, processing takes place here; we are authenticating the user by identity-checking whether they have the required balance to make that transaction and other things now after that's done, the payment is transferred. And the payment is received all of this happens in a matter of minutes. And this is as simple as that. This in turn removes all the problems of modern banking. There are no limits to the funds you can transfer, your accounts cannot be hacked, and there is no central point of failure. Now, as of 2018, there is more than 1600 Cryptocurrency available now there are some popular ones like Bitcoin Lite coin it's Harry amends each cash, and new Cryptocurrency crops up every single day. Now considering how much growth there is at the moment, there is a good chance there is plenty more to come in the upcoming years. So what exactly is Cryptocurrency? Cryptocurrency is a digital or virtual currency. 

That is meant to be a medium of exchange. Now Cryptocurrency is quite similar to real-world currency, and just it does not have any physical embodiment. It also uses cryptography to work the way it does. Now some of the features of Cryptocurrency are that there is a limit to how many units can exist with Bitcoin this limit exists at 21 million. Now, after this no more  Bitcoin will be produced, you can easily verify the transfer of funds. Now the hashing algorithms that Bitcoin uses make it very easy for users to determine whether a transaction is valid or not. They operate independently of a bank or a central authority they work in a decentralized manner.

Now new units can be added only after certain conditions are met, for example, in Bitcoin after a block has been added to the blockchain will the miner be rewarded with Bitcoins and this is the only way new bitcoins can be generated.

Hope you learn so many things about cryptocurrencies from this blog. Stay safe.

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