Introduction –
If you are interested in cryptocurrency, then you should know that it’s a kind of virtual currency a.k.a. online currency which is protected by cryptography. It is made in such a fashion, that it works as a medium of exchange, in which people’s ownership records are collected in a database which is computerized. The trait of cryptos or cryptocurrency is such that, they are not a currency that is fiat in nature or issued by the government agency of any place or country making them legal to any manipulation or interference from them. Learn here, more on ICO i.e. Initial Coin Offering & its significance.
Merits of Cryptocurrency –
One of the main and major benefits of cryptocurrency is that, the funds can be transferred globally through the cryptocurrency. Besides all of that, the transactional cost is minimum zero. Plus, it also doesn’t need the assistance of 3dr parties like VISA confirmation for the transaction. And, the most important of all is that, a cryptocurrency transaction is done in minutes. So, there is no hassles like other transactions which is done and takes a lot of time and confirmation. Many transactions take 2-5 days for settlement, but that’s not the case with cryptocurrency transactions. So, always choose cryptos. In plain words, it (Cryptos) is a digitized asset which is spread through several devices or system in a shared network. The decentralized nature or manner of this network protects them from any kind of governmental control and other regulatory bodies.
Meeting Certain Criteria –
A cryptocurrency meets the following kind of criteria and should meet the following – Maintenance through distributed networks and minus any centralized authority. Maintenance of records of crypto and its units and who is the owner of the same. Also, it is the system that will decide whether new units can be developed & in case if it does then the ownership and the terms of origin and so on. It is only through cryptography that the ownership of cryptos can be proved. And, it is the system that will permit the transaction to be done in which the ownership of the units is altered or changed. The first and the most popular type of cryptocurrency was and is Bitcoin. Bitcoin is only one such currency that gained a lot of popularity and fame in the year 2017. Other cryptocurrencies with different degrees of functions and stipulations have also been developed. In the year 2009, bitcoin was developed by a group known as Satoshi Nakamoto. In the year 2021, the market cap was around $927 billion bitcoins. Some of the altcoins created in competition with Bitcoin are Litecoin, Peercoin, Namecoin, Ethereum and Cardana.
Conclusion –
At present, the total value of all the crypto currencies in existence is around more than $1.5 trillion. And, bitcoin is one such coin that represents more than certain percentage of total value, like in the year 2021, it was 60%. There are several drawbacks of cryptos, and one such is the irreversibility factor.
