Cryptocurrency

Uploaded by rajeshp105 on Dec 07, 2021

What is Cryptocurrency.

Cryptocurrency is one popular word that has been widely used to refer to Bitcoin.

Bitcoin is a cryptocurrency, but all cryptocurrencies are not Bitcoin. Currently there are about 10,000 different types of crypto currencies. Bitcoin and Ethereum are the most popular ones with the highest market capitalization.

When searched for meaning of cryptocurrency online:
A cryptocurrency is a digital or virtual currency that is secured by cryptography
which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

Cryptography is the science or art of protecting information by transforming it into a secure format. Example of basic cryptography is an encrypted message in which letters are replaced with other characters.

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Cryptocurrencies work using a technology called Blockchain.

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each transaction in blockchain is independently verified by peer-to-peer computer networks, time-stamped and added to a growing chain of data. Once recorded, the data cannot be altered.

How does cryptocurrency make money?
By mining, you can earn cryptocurrency without having to put down money for it. Bitcoin miners receive Bitcoin as a reward for completing "blocks" of verified transactions, which are added to the blockchain.

What is the main purpose of cryptocurrency?
The main point of cryptocurrency is to fix the problems of traditional currencies by putting the power and responsibility in the currency holders' hands. All the cryptocurrencies adhere to the 5 properties and 3 functions of money.

Characteristics/ Properties and functions of money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
The Money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

Is crypto currency safe?
Investing in crypto assets is risky but also potentially extremely profitable. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially...