Cryptocurrency in simple term is “digital money”. It is a virtual currency completely independent of entity firm, Government control, or any party and there is no central authority who controls it, it is completely a decentralized system. The main goal of Cryptocurrency is to make easy Financial transactions which are easily transferable and accessible anywhere within the world.
Many people want to own some Cryptocurrencies as it is very famous these days and there are many who have no idea due to lack of knowledge. Crypto is a word which is very famous these days, it is known by many but understood by very less. You might have heard of Bitcoin, Ethereum, Ripple and many more other Cryptocurrencies but do you know Bitcoin is not the first Cryptocurrency, years back there was a digital currency called Digicash, which was founded years before Bitcoin came into existence. It was based on Cryptographic protocols and it came into existence in the year 1989 and it was created by David Chaum. But Digicash wasn’t popular at that time. Bitcoin came into existence in 2008 and became very much popular in less time.
At the time of Economic Crisis, a uprising digital currency was created for a very big purpose and that was going to change many things in future.
No one ever thought that something like this would come in coming years which would help them for easy mode of payment with real monetary value and less transfer fees when compared to that of banks. This was a revolutionary step for freedom from centralisation.Bitcoin was created for a reason and Satoshi Nakamoto Invented Bitcoin in 2008 as peer to peer electronic cash system.
Cryptocurrency has its own database i.e it’s based on blockchain technology. Data is stored in several locations and different computers hence information stored in the blockchain is very safe and secure. There are people who keep track of ledger who are known as miners. Anyone can be a miner, they need to use their computers power and every miner has to solve a Cryptographic puzzle, finding a solution to the puzzle a miner can confirm the transaction and add it to the blockchain, they then receive payment from the network in the form of Cryptocurrency.
Cryptocurrencies are not fully accepted by people as real money but as time and years pass it’ll surely be accepted as real money. Once people start using Cryptocurrencies for everything then it will be more common and called as real money. It’s the best time to use Cryptocurrencies as we can send and receive Cryptocurrencies anywhere in the world and also transfer fees are very less when compared to that of PayPal, Skrill etc. Cryptocurrencies are catching up fast, it is considered as a very fast and more secure way of doing payments.
Use case of Cryptocurrencies
- Cryptocurrencies are heavily being used for donations for charity organisations and the organisations are receiving enormous money in the form of Cryptocurrencies.
- You can book flight, hotel, cruises and much more. If you’re travelling in the future think of using cryptocurrencies for payment.
- Cryptocurrencies is used for buying luxury items.
- Cryptocurrencies is used for paying the content creators in social media.