‘Currency of the coming years’ – This is the shortest description of crypto-currency I can give. When it was first introduced it produced a huge buzz among the tech geeks and at the end of 2016 crypto-currency started gaining noticeable acceleration in both growth & popularity. People are becoming more familiar to it day by day and showing their interest towards this new way of making money.
Well before we dive deep in this topic, let’s take a short tour for the novice to understand what crypto-currency actually is.
What is Crypto-Currency?
Removing all the noise around this newly introduced currency and keeping it short, Crypto-currency is a well secured & anonymous (in many cases) digital money.
A currency managed and used through Internet using cryptography. Cryptography is a process by which evident information can be converted into almost uncrackable code, these information consists of all the necessary data related to purchases & transfers.
When people started heading towards it?
It is said, if there is a need, there is an invention. The idea of crypto currency was generated during the Second World War as people started to feel the need of a secure communication. Later the combination of different mathematics theory and computer science started producing well secured communication system including the transfer of information and money.
The first crypto currency:
‘Bit-coin’ is the first cryptocurrency, introduced in 2009 and has earned huge popularity specially in last one year. People were trying to make digital money from the 70s, but it came into existence in the mid of 2009. Satoshi Nakamoto is the name behind this amazing creation.
Bit coin- a form of digital currency, created in 2009. Payments/transactions are way more secure here as it uses decentralised technology. Even one can store money without the requirement of any banks and you can do it without using your name too.
As per the latest report of July 2017, around 16.5m bitcoins were in circulation. In the month of March 2017, the value of a Bitcoin was 1,268 USD which was higher than the price of an ounce of gold costing 1,233 USD.
How Crypto Currency Works?
By using the decentralised technology crypto-currency made payments highly secured & when it is about storing money, well neither you need any banking process nor even your name. Crypto currency run on a distributed public ledger known as ‘block chain’, which holds the information & records related to the transaction done by the currency holders.
‘Mining’ is the process by which units of crypto currency are created, that includes the use of computer power for solving complicated math problems that generates coins. A crypto currency user can buy currencies from brokers and can store or spend them accordingly using the cryptographic wallet.
Is bit coin the only crypto currency? Well absolutely not. Bit coin is the only currency and there are many more crypto currencies like Ripple, Ethereum, Litecoin etc.
Reason you should Use Crypto currency.
- Highly secured when it is about payment transfers or savings.
- Can be used by anyone.
- No need for banking services.
- Can use anonymously.
- Fake transaction cannot be done. One can’t reverse the transaction too.
- Low fees.
- Proper investing to this new market can be very profitable.
Something you should Know:
- Because of the anonymity level of crypto currency, they are often associated with illegal activity, especially on the dark web.
- Precaution should be taken.
- Users often take risks while buying so they must be aware of volatility of this newly growing market.