What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature. It is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency works through a blockchain, which is a public transaction database, functioning as a distributed ledger. Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Since the release of bitcoin, over 4,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.
How Does Cryptocurrency Work?
Cryptocurrencies work using a technology called blockchain. Blockchain is a distributed ledger that records transactions across a network of computers. This makes it very difficult to counterfeit or double-spend cryptocurrency.
To send cryptocurrency, you need to create a digital wallet. A digital wallet is a software program that stores your cryptocurrency. When you send cryptocurrency, it is sent from your wallet to the recipient’s wallet.
What is the Use of Cryptocurrency?
Cryptocurrency can be used to buy goods and services online. It can also be used to invest in. However, cryptocurrency is still a new technology and it is not widely accepted as a form of payment.
Why is Cryptocurrency Valuable?
Cryptocurrency is valuable because it is scarce and difficult to counterfeit. It is also decentralized, which means it is not subject to government interference or manipulation.
However, cryptocurrency is also volatile, which means its value can fluctuate wildly. This makes it a risky investment.
Dil Bole Oberoi
