Things you need to know about cryptocurrency
Cryptocurrency is a digital currency that exists only electronically and is secured by cryptography. Cryptocurrencies can be used to buy and sell but does not come in physical form , it is considered a form of digital asset based on a network that is distributed across a large number of computers. There is no physical coin or bill unless you use a service that allows you to cash in cryptocurrency for a physical token.
The first block-chain-based cryptocurrency was bitcoin ,but there are many other cryptocurrencies, some of which emanated through bitcoins and they are all stored in digital wallets , which can be online , on computers or on an external hard drive. Bitcoin is still the most popular among the other cryptocurrencies.
You can get cryptocurrency by buying it online , through an exchange platform or you can earn cryptocurrencies through a complex system called mining which requires an advance computer equipment to solve highly complicated mathematical puzzles.
DIFFERENCE BETWEEN AND THE TRADITIONAL CURRENCY
- Cryptocurrency accounts are not backed by the government while the traditional currency has legal laws backing its use and circulation through the central bank.
- Cryptocurrency value changes with no particular style but the value of each bill holds its amount as it comes.
- Payment with cryptocurrency is different from the traditional currency .
- Cryptocurrencies are usually irreversible except the receiver decided to return it but the traditional currency due to laws provided by the bank on transactions , credit and debit transactions could be reversed.
- Some information about your transactions could likely be public but with the traditional currency , transactions are mostly for your eye only.
REASONS WHY CRYPTOCURRENCY IS POPULAR
- Cryptocurrency is void of counterfeit because it is secured by cryptograph.
- Cryptocurrency makes it easier to transfer funds without governmental laws.
- Cryptocurrency beats the usual bank charges ,maintenance and laws on limits to among of money one could use or spend at a particular time.
Although cryptocurrency sees itself as a form of money but the government sees it as an asset and wants a piece of it. Central banks say they are important to the economy because of the high rate of employment opportunity tied to the banking industry but it is suggested that the Central bank also affect the economy negatively by their impact on consumers and circulation of financial funds that in turn could facilitate recession .
Published by patricia