Cryptocurrency
Cryptocurrency is a digital currency in which
encryption techniques are used to regulate the generation of units of currency
and verify the transfer of funds, operating independently of a central bank.
Cryptocurrency is a digital or virtual currency
that uses cryptography for security.
Cryptocurrency could be categorised into bitcoin and altcoins.
Bitcoin: This is the first cryptocurrency.
It was invented by an unknown programmer under the name Satoshi Nakamoto and
released as open software in 2009. The system is peer to peer and transactions
take place between users directly without any intermediary. These transactions
are verified by network nodes and recorded in a public distributed ledger
called blockchain.
Altcoins: These are abbreviation of bitcoin
alternative and thus describes every single cryptocurrency except for bitcoin.
Blockchain: This is a public ledger of all
bitcoin transactions that have ever been executed.
Ledger: This is the principal book for
recording and totalling economic transactions measured in terms of monetary
unit.
Advantages of Bitcoin
i) Freedom of payment
It very
possible to send and get money anywhere in the world at any given time
ii) Control and
Security
It provides an outlet for
personal wealth that is beyond restriction and confiscation.
You have
full control of money with cryptocurrency
iii) Information
is transparent
iv) Very
low transaction fees
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