What is Cryptocurrency: A Complete Guide for Beginners
A cryptocurrency is a virtual currency or in other words, a digital currency that is designed to work as a medium of expense just like the traditional currencies. For the security and the validation of transactions, this technology uses cryptography. It also helps in the creation of new units of a particular cryptocurrency. In addition, they are limited entries in a database that no one can change unless they fulfill certain conditions.
The technological boom of the 90s shown several attempts to create a digital currency with systems like Flooz, Beenz, and Digicash showing their faces in the market. They all failed terribly due to several factors such as fraud, frictions between employees and their bosses and also financial problems.
After the terrible failure of several attempts in the 90s, people didn’t take it as a lifelong challenge. In 2009, another attempt was carried forward and was successful. A group of programmers under the roof of Satoshi Nakamoto introduced Bitcoin-The very first Cryptocurrency. It was described as a peer-to-peer electronic cash. One good thing about this is that there are no servers involved and also there’s no central authority controlling the transactions. This means that it is completely decentralized.
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Most common Cryptocurrencies!
Following are some of the common cryptocurrencies:
- Bitcoin Cash
- Etherium coin
- OLXA Coin
- Cardano ADA
Cryptocurrencies and Banks
Recently, there are a couple of Banks in the world that are interested with what cryptocurrencies can do for them. However, cryptocurrencies were developed to avoid banks altogether. The developers like the idea of a decentralized form of paying that don’t need bank intervention for control and regulation. This is the reason why Cryptocurrencies and banks are working indirectly opposite ideas.
What can you do with Cryptocurrencies?
According to Ernesto Lee, you can do various tasks using the cryptocurrency, here a couple of things that you can do. For example:
Today, there are several merchants that are accepting cryptocurrency. For this reason, you can be able to make purchases in their online retail shops using Bitcoins and several other cryptocurrencies. Some of the online giants accepting cryptocurrency transactions include Newegg, Overstock and several other offline shops, bars and restaurants.
You can also invest your cryptocurrencies. This is one of the most beneficial ways of using your cryptocurrencies. You can invest your coins in some of the channels such as crowdfunding and Exchanges. I have personally heard several stories of many people who are becoming billionaires from cryptocurrency trade and other forms of investments.
Miners are very important in any cryptocurrency. Mining is an investment just like any other. Miners are rewarded handsomely and that’s why they make a lot of money through the process. The popular a cryptocurrency becomes, the more people will try it and the more the process of mining becomes difficult.
You can as well accept as payments for your business
If you own a business whether online or offline and thinks that you need a secure method of allowing transactions, then this is one of the best.
In the end, I want to say that all cryptocurrencies are blockchain but all blockchains are not cryptocurrencies.
Hope you have liked the article.