What is cryptocurrency?

Cryptocurrency is a kind of online currency available on internet. Using it one can do online transactions, it is safe money as it is difficult to steal. There is no government monitoring, it works with a network on the Internet called Blockchain. All process happens online, no government is responsible of it.

Understanding Cryptocurrency

Cryptocurrency is an online currency that uses digital codes to keep transactions secure. This eliminates the need for any governing third party and you can make secure payments online. The term “crypto” refers to various computations and codes used to protect privacy, such as special keys and encryption techniques.

Cryptocurrencies like Bitcoin are an example of blockchain technology. It is like an online notebook in which all transactions are written in a related group. Each block contains a set of transactions that have been independently verified by each network’s validators. It’s like a super-secure online money history book.

As new blocks are created, they are first properly verified, so that no false transactions can occur. All computers must agree on the information contained in the online ledger.

To explain in detail, blockchain technology can help industries in supply chain management, online voting, and crowdfunding. Financial institutions like JPMorgan Chase & Co. are using blockchain to make payment processing easier.

Increase in demand for cryptocurrencies: The secret of Bitcoin

Nowadays the value of Bitcoin has increased a lot, but 10 years ago it had no value. At that time one bitcoin was worth only 40-50 rupees. Why is there demand for Bitcoin in global market? This question arises in the minds of many people, and we will understand it in simple words.

Touching cryptocurrency, holding it, keeping it in pocket, picking it up in hand – all this cannot be done, but it can be spent anywhere, like we get points from Flipkart and Amazon, but we cannot touch it, nor hold it. You can’t carry it, nor can you keep it in your pocket. In short, it is a virtual money.

The value of cryptocurrency is now fixed and its demand is increasing because during transaction its transfer details are secret. When money is transferred from one account to another, no one comes to know. Hence, it can save 30% tax as even government is not aware or has any details of the same.

But there is a risk in Bitcoin, if by mistake cryptocurrencies is deposited in wrong account, then the other person can have the money, but no one will know where this cryptocurrency went and we will also not be able to get the money back from him. There is no bank-like intervention in this, which can help us if we commit any mistake.

Future of Cryptocurrency

If someone had bought Bitcoin in 2010, he would have had Rs 1 crore today, because its demand is increasing. The way to keep Bitcoin is that it remains with our password, so no one can steal it.

In future, the importance of Crypto will increase and we should also know more about the crypto. All transactions will be done through Crypto so we should also learn about it and be able to use it to the best of our abilities.

Future is Crypto!