WHAT IS CRYPTO CURRENCY?
A crypto currency is a digital currency that is encrypted to avoid fraud and duplicate payments. Blockchain technology, an immutable network maintained by a worldwide network of computers, is at the heart of several cryptocurrencies.
Cryptocurrencies vary from traditional currencies because they are decentralized and not distributed by any central authority, which makes them potentially invincible to govt intervention or control.
The word “crypto” covers a broad spectrum of encrypting approaches and techniques, including elliptic curves encrypted data, data encryption pairs, and hash functions.
Cryptocurrencies are electronic or virtual currencies that rely on encryption to operate. They allow secure online payments to be made without the need for third-party payment processors. Cryptocurrencies can be acquired by mining or exchanged on crypto exchanges. All e-commerce sites do not allow cryptocurrency purchases. Including highly profitable cryptocurrencies like Bitcoin are infrequently used in retail spending. As the value of cryptocurrencies has increased, so has their appeal as trading tools. To a variable extent, they are being used for cross-border transactions.
TYPES OF CRYPTO CURRENCY:
The most well-known and valued cryptocurrency is Bitcoin. It was created and made public in 2008 by a mystery figure named “Satoshi Nakamoto” via a white paper. Several types of Cryptocurrencies have been launched in the market. Every cryptocurrency implies having specific perspectives, requirements, and objectives. Ethereum’s ether, for example, is sold as gas for the innovative contract platform’s underlying smart contracts.
Bitcoin officially appeared in 2009, is perhaps the most extensively transacted and stated cryptocurrency. Since about November 2021, there were approximately 18.8 million bitcoins in existence, with a total market capitalization of more than $1.2 trillion. There will be a limited 21 million bitcoins generated. Following the success of Bitcoin, a swarm of other cryptocurrencies known as “altcoins” have sprung up. A few are Bitcoin variants or clones, but others are entirely unique currencies developed from scratch. Among them are Solana, Lite coin, Ethereum, Cardano, and EOS. By November 2021, the total value of all cryptocurrencies had topped $2.1 trillion, with Bitcoin representing around 41% of that total.
BENEFITS OF CRYPTO CURRENCY:
Cryptocurrencies are a new type of decentralized money. In this system, centralized intermediaries like banks and monetary organizations are not necessary to enforce trust and regulate transactions between two individuals. As a result, a cryptocurrency-based system decreases the possibility of a single point of failure, such as a large bank, creating a worldwide crisis similar to the one triggered in 2008 by the bankruptcy of US institutions.
Crypto Currency promises to make it easier to move payments between two parties without using a trusted third party such as a bank or credit card provider. Public and private keys and additional incentive systems such as proof of work and proof of stake are utilized to secure such decentralized transactions. Investing in cryptocurrencies may be profitable. Over the last decade, the value of cryptocurrency markets has surged, reaching over $2 trillion at one time.