CRYPTOCURRENCY (BITCOINS)

CRYPTOCURRENCY [BITCOINS]:

 

HELLO! Readers here is a new essay about cryptocurrency:

 

 

Still now many are unaware of CRYPTOCURRENCY , crypto-currency, or in a short way, crypto referred to as a digital currency in which transactions are verified and records maintained by a decentralized, which means (controlled by several local offices or authorities rather than one single one) system using cryptography, which means (the art of writing or solving codes)  rather than by a centralized authority.

Many cryptocurrencies are decentralized network based on blockchain techonology-a distributed ledger enforced by a despirate network of a computers. This decentralized structure allows them to exist outside the control of government and central authorities.

WHY CRYPTOCURRENCY?

Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties, without the need for a trusted third party like a bank or credit card company.

POINTS TO KNOW ABOUT CRYPTOCURRENCY:

  1.  The word “cryptocurrency” is derived from the encryption techniqunes which are used to secure the network.
  2. still of now no one knows who created Bitcoin.
  3. Bitcoin has been valued at less than a penny.
  4. There are over 5,000 different currencied.
  5. CHINA is the biggest cryptocurrency miner.
  6. They are taxable.
  7. Cryptocurrency can’t be physically banned.
  8. The total amount of bitcoins is limited like gold or oil.

 

 

ADVANTAGE OF CRYPTOCURRENCY:

  1. Modern cryptocurrency systems come with a user “wallet” or account address which is accessible only by a public key and pirate key. The private key is only know to the owner of the wallet.
  2. Funds transfer between two parties will be easy without the need of third party like credit/debit cards or banks.
  3. Payments are safe and secured and offer an unprecedented level of anonymity.
  4. It is a cheaper alternative compared to other online transactions.
  5. Funds transfer are completed with minimal processing fees.

DISADVANTAGE OF CRYPTOCURRENCY:

  1. There is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.
  2. Payments are not irreversible.
  3. The almost hidden nature of cryptocurrency transactions makes them easy to be the focus of illegal activities such as money laundering, tax-evasion and possibly even terror-financing.
  4. Cryptocurrencies are not accepted everywhere and have limited value elsewhere.

CRYPTOCURRENCY IN DAILY LIFE:

  1. Authentication/Digital Signatures.
  2. Time Stamping.
  3. Electronic Money.
  4. Secure Network Communications.
  5. Disk Encryption.

   BITCOIN:

 

 

Bitcoin is a DIGITAL CURRENCY that was created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.

CONCLUSION:

In addition to battling the current economic system, cryptocurrencies have some internal challenges to overcome. Attempting to convert the entire world financial system to the BitCoin model, for example, could cause such a massive growth in blockchain size that the distributed ledger model would become impractical. On the whole, we came to know  some infromative contents about cryptocurrency and its pros and cons.Hope you people make use of it affordably.