Imagine you're having a conversation with your friends now at some point in this conversation someone's going to bring cryptocurrencies. Today cryptocurrencies have become a global phenomenon known by most people but understood by few. Cryptocurrency is something that everyone wants to talk about but no one really knows how they work so today I'm going to fix that.
Currency it's an important part of our life.Cryptocurrency is the digital or virtual currency that is meant to be a medium of exchange. Cryptocurrency is quite similar to real world currency just that it does not have any physical personification. As of 2018, there's more than 1600 cryptocurrencies available. Now there are some popular ones like bitcoin, litecoin, ethereum. And new cryptocurrency crops up every single day.
Some features of cryptocurrency are that there's a limit to how many units can exist. With bitcoin this limit exists at 21 million now after this no more bitcoins will be produced. You can easily verify the transfer of funds. They operate independent of bank or a central authority. New units are added only after certain conditions are met.
- So what's makes cryptocurrency so special firstly. There's is no or little transaction cost. 24/7 access to money. No limits on purchase and withdrawals. Freedom for anyone to use. International transaction are faster.
Cryptocurrency is the key to the complex digital cash problem.
Two major cryptocurrency. Bitcoin and ether. Bitcoin is a form of digital currency and is decentralized without a central bank. It uses blockchain to perform transaction on a peer to peer network. Ether is a currency that's accepted in ethereum network. They're the biggest and most valuable crypticurrencies. These are widely use across the world. Bitcoin is used to send money to someone this is very similar to how real life currency works while ether it is used as a currency within a ethereum network although it can be used for real life transaction as well. Bitcoin transactions are manual which means you have to personally performed these while with ether you have the option to make these transaction manual or automatic which means that these transaction will take place when certain conditions has been met. For bitcoin it takes 10 minutes to perform a transaction while ether takes only 20 seconds to finish a transaction.
There's a limit to how many bitcoin can exist; 21,000,000. Ether is expected to be continous but not expected to exceed 100,000,000.
It should also be noted that investing in cryptocurrencies is legal in India and there are no laws that prohibit individuals from buying or selling virtual coins. Investing in crypto is liked making money while you're sleeping.
I think the pandemic has taught people the importance of multiple streams of income unfortunately having a job doesn't means security. Despite the economic crisis this is still the good time to invest in gold and cryptocurrency.
