CryptocurrencyFor most of history, humans used tocommodity currency. Fiat currency is a more recent development and popularstuff. At the present time, it is the dominant form of money It’s just worth it because we all agree with it.
If everyone does not believe that money is tied up, no one will accept it.would be worthless. Even though the most people use fiat money, nowadaystechnology is developing dramatically.
Many people have physical wallet for money. That means we constantly usemoney to purchase or pay something. Although the most people are using cash in theirlife.
By the way we can create our electronic wallet. It means about digitalmoney that named cryptocurrency. In the other words, cryptocurrencypossible to alter the value of code and value of money. In the simplest form, cryptocurrency isnumeric currency. Basically, cryptocurrencies are symbolsof decentralized consensus-databases.
Becauseprocedures for consensus retrieval under acceptable cryptography are confirmed.Cryptocurrencies are based on cryptography. They are not secured by people or by hope and trust,but backed by mathematics.
Thefirst cryptocurrency was bitcoin which invented by Satoshi Nakamoto,2009. Bitcoin is a new networkconsisting of a payment system that uses uniquely digital money. Bitcoin refers to a network that is decentralized anddirectly identical. That means there is no rule without the cooperation of eachuser who makes use of the worth bitcoins, the currency. A bitcoin is basicallycash for the internet. However, as more currency becomes more popular,more physical locations are starting to accept Bitcoins as payment. Firstwe should to know how it works.
Bitcoinchanges money works. It was created to provide an alternative to bankingsystem. Bitcoin is based on peer-to-peer system. So there is no centralauthority. Instead bitcoins are issued to users who help process transactionsin the network. Those about block chain, transaction and mining. The block chain is shared bypublic ledger on which the whole bitcoin network confidence. Bitcoin miners arespecialized computers that do the required to verify and record transactions inthe blockchain.
It means all accepted transactions are includedin the block chain.Transactionmeans people are capable of sending bitcoins or digital money to each otherusing their smart phones or their laptops without third parties and banks. It’salike to sending cash digitally. Then mining means people strive against to’mine’ bitcoins using computers to solve complex mathematics problems. It showshow bitcoins are created. As a reward for their work, the miners earn bitcoins, and this is how new bitcoinsare released into circulation. So as forbitcoin, one us dollar equals 0.00010 bitcoin.
By the way, the system isprogrammed so that only 21 million bitcoins will ever exist. It shows apredictable supply that’s governed by scarcity.However, everything has advantage and disadvantage sides. Asfor cryptocurrency’s advantage is sometimes possible to increase your money bybitcoin. It means you can get profit while you’re using bitcoins. And it iseasier to use than fiat money or cash. Moreover, people don’t need central bankor third parties when they use bitcoin.
With bitcoin, you can send any amountof money to anyone to anywhere in the world as easily as sending an e-mail. As for disadvantage, There is a high chance of loss frombitcoin’s going up and decreasing value. That’s why wrote that, I watched movieabout bitcoin recently. In that film, bitcoin’s value was inconsistent in 2013.By the way, Bitcoin’s users are increasing day by day. Even though many people heard about cryptocurrency, they areafraid of joining cryptocurrency’s user. That’s why they don’t have enoughknowledge about it.
Also they are scared of losing their money or risk andmight make a mistake. Also some people don’t agree with cryptocurrency will befuture currency. Because they think cryptocurrency will not able to survive orthrive without becoming legitimate.By the way, so many people using bitcoin in so many differentways. It expresses cryptocurrency is expanding in the world. Conclusion, We will have been using money, whethercryptocurrency will be future money or not.
No one knows digital currency howwill change our life in the future.