What is Cryptocurrency? How does Cryptocurrency work?

Any person, institution, country and world needs a currency to fulfill its basic needs and to promote mutual transactions so that it can use it smoothly. Therefore, each country has its own different currency, such as Rupee in India, Dollar in America etc. Actually, it is a physical currency that you can see, touch and use it in any place or country as per rules. But cryptocurrency is different from that which is a digital currency. You can neither see it nor touch it, because cryptocurrency is not printed in physical form. Hence it is called virtual currency. This currency has become quite prevalent in the last few years.

What is Cryptocurrency ?

A Cryptocurrency is a currency built on a computer algorithm. It is an independent currency that has no owner. This currency is not under the control of any one authority. Just like rupee, dollar, euro or other currencies, this currency is not operated by any state, country, institution or government. It is a digital currency for which cryptography is used. Usually, it can be used to purchase goods or to buy a service.

You should know that the first cryptocurrency started in 2009 was "bitcoin". It was built by an engineer named Satoshi Nakamoto from Japan. Initially it was not so popular, but gradually its rates started skyrocketing, which made it successful. If seen, there are about 1000 types of cryptocurrency in the market from 2009 to present time, which act as peer to peer electronic system.

What are the most popular currencies other than bitcoin?

Apart from Bitcoin, other cryptocurrencies are available in the market which are being used more nowadays, such as Red Coin, Sia Coin, Cisco, Voice Coin and Monroe. Let us now know some important things about them: -

1. Red Coin :- Apart from Bitcoin, there are many other cryptocurrencies that can be used on special occasions, one of which is "Red Coin". It is used to tip people.
2. Sia Coin :- Sia coin is denoted with SC. This coin is growing well. The price of this coin may increase even more.
3. SYS Coin (Cisco) :- It is a revolutionary cryptocurrency that offers zero cost financial transactions and with incredible speed. Business Asset Digital Certificate provides the business with the infrastructure to securely trade data. Cisco works on the blockchain which is a part of bitcoin itself.
4. Voice Coin :- It is a platform designed for emerging musicians where singers can price their music on their own. They can provide a sample track of music for free. Also, you can get support from music enthusiasts and users on the platform. The main objective of this platform is to monetize independent artists.
5. Monero :- It is also a type of cryptocurrency in which special type of security is used. This is known as ring signature. It is used extensively in the dark web and block market. Smuggling is done with its help. With this currency, black marketing can be done easily.

Also read: What is Blockchain Technology and how does a Blockchain technology works?

How is the growth of cryptocurrency?

If we talk about the growth of cryptocurrency, then investing in it is a very profitable deal. Today there are about 1000 types of cryptocurrency in the market and the price of all these coins was negligible at the time of launching. However, in a few years, their price has also reached 1000 dollars. Now take Bitcoin only. When Bitcoin was launched, there was a daily transaction of $ 10 million worldwide, but today, Bitcoin is being transacted for $ 1 trillion in a week, whereas a week-round transaction of physical currency is around 70 trillion worldwide. It becomes dollar. Bitcoin, which started at a price of 1 dollar, has reached a price of $ 1200 today. Therefore, you can yourself guess what the growth of cryptocurrency can be in the future.

What are the benefits of cryptocurrency?

We know that any thing has both advantages and disadvantages. Therefore, here we first talk about the benefits of cryptocurrency. Nevertheless, generally we can say that the benefits of cryptocurrency are more and losses are less. First, cryptocurrency is a digital currency with very low probability of fraud. Secondly, it is beneficial to invest in cryptocurrency when there is more money because its prices rise very fast. Therefore, it is a good platform for investment. Thirdly, most of the cryptocurrency wallets are available due to which online shopping, transaction of money has been simplified. Fourth, the cryptocurrency is not controlled by any authority, due to which no threat of demonetisation and currency depreciation is exposed. Fifth, there are many countries where there is no capital control. Meaning that it is not certain how much money can be sent out of the country and how much can be ordered. Therefore, by purchasing cryptocurrency, it should be sold to the country.

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