What is Cryptocurrency?
Hello everyone, Today we are going to discuss Cryptocurrency. Everyone today is in the confusion that should they invest their hard earn money in Cryptocurrency. Is this Cryptocurrency is worth investing and what all terminology used. Questions below are going to be answered in the article.
What is Cryptocurrency?
Nowadays you are getting so many information about something like bitcoin. Bitcoin is a cryptocurrency, it means an encoded computer code that is equivalent to some amount of money. Or you can say that the money you cannot touch or feel. You can convert it into any currency anytime anywhere in the world.
How does it work?
Working of this cryptocurrency, if you have bought some amount of this currency, you are provided with a key. This keys with you are the only way you can do the transaction.
What are keys and their types?
Keys are the password that is given to the owner so that they can do the transaction. They are of two type public and other private.
Who controls and register transaction/exchange of Cryptocurrency?
The transaction is an exchange of money either buying or selling. when you buy cryptocurrency you are given private key and number of private is only one. But when the transaction is done many public keys are generated for checking whether the transaction occurred is accurate or not. This checking of the transaction by public key result is zero error.
The resemblance of Cryptocurrency with actual money?
Cryptocurrency is also a money but the only difference is that you cannot see it or feel it. The value of this currency can change into other currency like dollar, rupees or pound.
What is blockchain?
The blockchain is the connection of all computers that are connected to the internet in the transaction of cryptocurrency. These computers who are supporting this transaction and verifying the transaction through public keys are doing mining.
What is mining?
Mining is the process of generating the cryptocurrency. Through the mining, the cryptocurrency is generated. More specific, when a transaction is done computer processing power, electricity, and other resources are used in return of these resources some percent of this currency is given per transaction.
Types of Cryptocurrency
There are many types of cryptocurrency in market like
- Litecoin (LTC)
- Ethereum (ETH)
- Zcash (ZEC)
- Ripple (XRP)
Bitcoin and ripple are the some of the famous ones. Today, 9th February 2018, 1 bitcoin is equal to 529820.42 Indian Rupee and 8245.00 US Dollar.
- There are more than 1,300 cryptocurrencies (but bitcoin is king).
- “Miners” play a critical role.
- The Bitcoin whitepaper was made open to the public under the pseudonym of Satoshi Nakamoto.
- If you lose your Bitcoin private key, you lose your bitcoins.
- There will only ever be 21 million bitcoins.
- You can buy a lot of stuff with Bitcoin.
Hopefully, this article will help you understand what cryptocurrency are and how they are managed, created. For more information, you can stay tuned and enjoy your day or night. Thanks a lot for your time.