What is cryptocurrency?

 

To understand cryptocurrencies, you need to know how money works and what makes this new asset valuable and helpful in the future as a currency. First, there are "physical" currency, notes, and coins. Electronic money came - the figures displayed in your e-bank apps. Both are issued by the government.

Then came Bitcoin, a kind of electronic money that was not emitted by the government. It is also known as math money since it originates from complex arithmetical computer network blockchains. Today, bitcoin is utilized primarily as an asset, but blockchain technology has driven many applications. But the future of money may look very different.


1. Blockchain, how about it?

Suppose that Svetlana borrows 10,000 Rupees from me. She ought to go back in a week, but not. I remember her, but she's neatly "forgotten." What can I do? What can I do? What can I do? What can I do? Nothing except to never give her anything again! True story. True story. True story. True story.


Now, suppose that there are a few friends when you give them money. They all clicked on an image or saved a video of me handing Svetlana money and pledged to repay Svetlana within a week. And each friend uploads a video/photos on Instagram, Facebook, etc. This is strong evidence now. And Svetlana cannot really delete these Web videos/pictures.


It's now like a blockchain.
A blockchain is normally connected to multiple computers (nodes). These are all equally informed computers (e.g., a ledger of transactions). You will have to "hack" most of these computers to "hack" this information simultaneously. And that's a difficult thing to do!

There are many blockchains throughout the world. Bitcoin's first and most ancient Blockchain. It records all cryptocurrency transactions in Bitcoin. Anyone can run a blockchain node. You just need a PC with enough storage and a decent Internet connection.

2. How is a cryptocurrency created?

There are two common cryptocurrency creation techniques accessible. One is Bitcoin, while the other is Ethereum. One is Bitcoin.

In the Bitcoin concept, many computers are called miners who are continuously trying to solve mathematical puzzles. One of these miners wins the competition to answer the issue about every 10 minutes. This miner gets paid 6.25 bitcoins. It's 2 crores of Rs. That's right, you read it. Yeah, that's correct. Someone receives two bitcoin crores every ten minutes.

But don't be too jealous of these miners. Tons of money has to be spent on computers and power. And you can never know how much you're going to do.

Many years ago, someone might use a laptop for me or create bitcoins! Well, no more. No more. Today, you need a ton of computing power. You may download the free Future Money Playbook I created to understand this concept in all its complicated technological beauty.

You can create your own Ethereum-style currency in minutes. My children were fed up to hear Dogecoin. They thus decided to make their own cat's money. They had to do nothing more than adopt an "intelligent contract" and publish it on the Ethereum network. That's it! That's it! That's it! That's it! They have created a new cryptocurrency with 7 billion tokens, one for every person on earth in a few minutes. True story. True story. True story. True story.

3. What are the kinds of cryptocurrency?

 

There are three major types of cryptos - medium exchange, excellent coin, and stable coins.
A cryptographic medium may be used to buy and sell goods. E.g., Bitcoin, Dogecoin, and Litecoin. These are things governments hate. These are stuff. It's because criminals can use them. But hey, thefts may also utilize cash! It is thus a bit unfair to blame the poor little cryptos.

 

Then there are helpful coins. As the world economy, oil "fuels," utility currencies, like Ether, are power businesses based on Blockchain.

 

And finally, there are stablecoins. Regular fiat currencies such as the US dollar or the Japanese yens support them.



4. There are no numbers.

Bitcoin is the first and most popular cryptocurrency in the world (BTC). It is a cryptographic medium worth about 880 billion dollars. JP Morgan Chase, the world's largest bank, is valued at 470 billion dollars.

Ether (ETH) is the world's most popular utility money, with a total of $377 billion. The largest bank in India, HDFC Bank, is 140,37 billion dollars lower than the total.

Tether is the most popular stable coin of $64 billion (USDT). Looks a lot, doesn't it? Well, this is also the size of ICICI Bank!