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‘What Is Cryptocurrency–‘ Is That What The Crush Asked…?

‘What Is Cryptocurrency–‘ Is That What The Crush Asked…?

What is Cryptocurrency

Be it the crush or investors, to be in the game, you need to know ‘What is Cryptocurrency?’ Also, it is a relevant question to ask in the digital world of today.

If you have been living in a rock cave, then maybe you have not heard of “Cryptocurrency”. And if you have but still are unaware of what it is–this is just the right place for you!

  1. What is Cryptocurrency?
  • A cryptocurrency is a digital or virtual currency that is available only in electronic form.
  • A cryptocurrency is a digital asset based on a network distributed across the globe through many computers.
  • The decentralized structure of this money and blockchain technology allows it to work outside the control of governments and central authorities.

via bankrate

  1. The Derivation
  • The word is derived from encryption techniques because of its encryption algorithms and cryptographic techniques. 
  • That is the reason which makes it nearly impossible to forge or double-spend. 
  • Many cryptocurrencies are decentralized networks. These are based on Blockchain Technology (a distributed journal enforced by a disparate network of computers). 
virtual currency
  1. What is the use of cryptocurrency?
  • As a mode of payment worldwide, several merchants, jewellers, restaurants, hotels, airlines etc. (these are accepting it as a form of payment medium).
  • Investment People can use it as their assets for revenue generation.
  • Its value, the rising rate can prove to be an excellent avenue for capital expansion.
the use of cryptocurrency

via bitpanda

  1. How does it work?
  • Bitcoin is a cryptocurrency first launched in 2008. It works on Blockchain Technology.
  • There are now more than 2000 cryptocurrencies in the world. New cryptocurrencies are launching every day like Facebook’s “Diem”.
  • This currency is fully digital and does not come under any institution, unlike the Indian Rupee, regulated by the Reserve Bank of India (under the Reserve Bank of India Act 1935). So, this currency cannot be traced back once a transaction is done. 
How cryptocurrency work

via sdev

  1. Effect on Environment
  • Elon Musk (after the advice of several environmental scientists) withdrew his decision on accepting Bitcoin as payment. Meanwhile, China also tightens its noose on Bitcoin mining cases.
  • Bitcoins are mined like gold and other precious metals. But, in this case, they are mined by solving complex maths problems with the help of sophisticated computers. This can contribute to maintaining Bitcoin transactions, and in return, miners earn rewards as Bitcoins.
  • The higher price of Bitcoin lures many miners to mining. In this whole process, a lot of electricity is consumed by computers in mining Bitcoin.
  • Electricity generated by using fossil fuels and its consumption for the above-told purpose poses a higher threat to the environment.
Cryptocurrency bitcoin
  1. Why is it banned in several countries?
  • Bitсоin аnd оther cryptocurrenсies аre соnsidered оutlаws in sоme оf the соuntries аs the Gоvernment аnd the finаnсiаl institutiоns аre nоt аble tо соntrоl оr regulаte it. Sо, it sсаres them.
  • Cryptocurrency Mаrket аttrасts criminаls аnd рeорle interested in tаx evаsiоn аnd mоney lаundering. 
  • It hаd beсоme а lаtest trend in Dаrk Web Mаrket, Silk Rоаd, when they were оnline. “But if а рersоn wаnts tо сheаt then they will find different meаns аs tаx evаsiоn” hаs аlwаys been а рrоblem, with оr withоut cryрtоcurrenсy.
  • Eаsy mоde оf trаnsfer in cyber-terrоrism, mоst fаmоus саse wаs оf WаnnаСry аnd Рetyа Viruses in whiсh $300 were раyed in Bitсоin tо Deсryрt Files.
Bitсоin banned

via inc42

  1. The Ongoing Hazards
  • Recently Bitcoin became the currency of smugglers, kidnappers, and several black market activities to remain anonymous.
misuse of bitcoin

via pymnts

  1. Volatility, instability and everything in between
  • Unlike other investments, cryptocurrencies are not tied to any valuable assets, making them quite volatile.
  • A perfect example of how unstable cryptocurrencies can be seen in the recent Cryptocurrency Market Crash.
  • So, before investing in them, one should be especially careful about the trends and changes.
Cryptocurrency Market Crash
  1. A list of countries that have banned cryptocurrency 

There аre а few соuntries where yоu саn’t enjоy сryрtосurrenсy rights аs they hаve been bаnned:

  • China
  • Аlgeriа
  • Bоliviа
  • Eсuаdоr
  • Neраl
  • Bаnglаdesh
  • Саmbоdiа
  • Iran 
  • Turkey 
ban crypto mining

via levpn

“Ab jab koi bhi puche what is cryptocurrency, aa jana yahi aur krelena impress. Till then, you can explore further about what is the Future of Cryptocurrency…”

Blog Edited By Ritika Gupta

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