What is Crypto Currency

 

Imagine you are chatting with your friends now at some point in this conversation someone will bring crypto money now crypto money is something everyone wants to talk about but no one really knows how it works. So today I'm going to fix that. From a human point of view, money has become a very important part of our lives. In the time of the caveman they used the exchange system, now the exchange system includes goods and services that are exchanged with each other. So now we have a situation where a cave man exchanges seven apples and gets oranges. Now the trading system no longer works because it had some flaws. Now these errors include the needs of the people. For example you say you have five apples and your friend has five oranges he wants some of his oranges. Until also unless your friend has a need for your own apples you will not be ready to exchange them. There is no current value estimate as there is no standard estimate depending on which amount of assets can be displayed. There is a problem where you have to decide how many apples are ready to trade in one orange or mango not all codes can be split or split. For example you can divide a live animal into smaller units. Goods cannot be easily transported now unlike our current currency.

After realizing that the exchange system and its most efficient financial system passed a few repetitions in 110 BC. Official coins were made in 250 AD gold coin Florence was introduced and this was used throughout Europe and from 1680 to 1980 paper currency gained widespread popularity and was used worldwide this is how modern money as we know it came into being.

Modern currency includes paper money and credit cards and digital wallets. For example Apple paid Amazon paid DM Pay Pal so all of this was controlled by banks and government. Now this means that there was a central regulatory authority limited to how paper money and credit cards work. Now consider the case of online transactions. Here you thank your friend for paying for your lunch if you say you are sending money to his account. Now this transaction is successful but there are several ways in which this could have gone wrong. It would be a technical problem for the bank, for example the systems would be, the equipment would not work properly and so on. This means that there is a major point of bank failure that users' accounts could find hacked for example could be a DDos attack or identity theft or so on transfer account restrictions. That is why the future of money lies in cryptocurrency.

Now consider transactions between two people in the future. One of them has a Bitcoin app and there is a notification asking if they are ready to transfer five bitcoins. If processing yes happens. Here where users' identities are verified if they have the necessary balance to make that transaction and other items. Now after that, the payment is transferred and the payment has been received. All of this happens in a matter of minutes and is as simple as this. It removes all the problems of today's banks. There is no limit to the amount you can transfer, your accounts cannot be hacked and there is no point between failures now. The new cryptocurrency is growing every single day now considering how much growth they currently have there is a good chance that there is more to come in the years to come. So what exactly is cryptocurrency. Cryptocurrency is a digital or virtual currency intended to be a means of exchange.

Now cryptocurrency is so much like real world currency just that it has no physical structure. And uses cryptography to work the way it does now. Some of the features of cryptocurrency is that there is a limit on how many units can be made with Bitcoin this limit exists at 21 million. Now after this no more bitcoins will be produced. You can easily verify the transfer. Now the hashing algorithms used by Bitcoin make it much easier for users to determine whether a transaction is valid or not. They operate independently without a bank or central authority operating in a separate manner now new units can only be added after meeting certain conditions. An example of Bitcoin only after a block was added to the blockchain where the miner would be rewarded with bitcoins and this is the only way new bitcoins can be created.

 

Now what makes cryptocurrency so special? Firstly there are no transaction costs now if you use a digital wallet you will know that if you transfer money from your wallet to your bank account you will lose some money. You have 24/7 access to the money you can't just come to your bank at 3am and say you want to withdraw some money there are no restrictions on purchases and Madras is free to use anyone. For example when setting up a bank account you need to create a certain amount of paper and documents. With cryptocurrensets all that can be avoided. International transactions are fast, phone transfers take about half a day to transfer money from one place to another, but with cryptocurrensets it only takes minutes or seconds is crypto in cryptocurrencies crypto navistick or Prague Rafi bad. Now this refers to third parties who want to steal your data or who want to listen to your conversation.

 

The world is clearly divided when it comes to digital finance on the one hand it has supporters like Bill Gates Al Gore and Richard Branson who say cryptocurrencies are better than regular currencies on the other hand we have people who are totally against people like Warren Buffet, Paul Krugman and Richard Schiller both Nobel laureate and Nobel laureate. In the future there will be a conflict between regulation and anonymity because several cryptocurrencies are linked to terrorist attacks. Governments will want to control how cryptocurrensets work on the other hand the main emphasis of cryptocurrensets is to ensure that their users remain anonymous. By 2030 cryptocurrensets will account for 25% of the national currency which means that a significant global chunk will begin to believe in cryptocurrency as a means of transactions. It will be more acceptable to retailers and customers and will continue to be volatile which means prices will continue to fluctuate as they did a few years ago.

I hope now you have a clear idea of what crypto currency is about and how does this mechanism work.

Thank you for reading.