Cryptocurrency. This term is becoming quite popular these days, and I had no knowledge about it, and naturally, I became curious and wanted to know more and here is what I understood.
- A cryptocurrency is a form of digital currency which has no physical form and has no country’s seal in it.
- According to Wikipedia, its origins go back to 1988, where a person named Wei-Dai laid the first foundation by publishing a description of “B-Money” which detailed about an anonymous, distributed electronic cash system.
- The first decentralized cryptocurrency “BitCoin” was introduced in the year 2009 by Satoshi Nakamoto, a pseudonymous developer.
- Bitcoin is like any other currency whose value is determined in Dollars. Believe it or not, today the cost of a single Bitcoin is above $5,100.
- A person can use Bitcoin to meet daily expenses like groceries or any basic needs if their country allows them to do so. As it is in the form of digital currency, you don’t need to carry it around in your purse.
- It works through a public ledger where all the transactions of the cryptocurrency are stored, and every time a Bitcoin is bought or sold, the ledger is updated. A bunch of these transactions makes a block
- It lets its user make secure payments without a need of bank’s payment gateway.
- It apparently is the first currency the user can mine by themselves if their computer is capable of it.
- To an average user like you and me, we can buy and transact with Bitcoins without the need of any physical form of cash.
- There are other cryptocurrencies named Litecoin, Peercoin, Namecoin, Ether, and Primecoin.
- According to our Indian Government and the Reserve Bank, cryptocurrency is not recognized and has warned the public about its financial, legal and operational risks.
- To safeguard oneself from these risks, they can start out by investing in small amounts and should never disclose your private access key to your crypto wallet just like you do with your bank cards PIN.
- If the passwords are stored in your digital devices, it is prudent to take cautionary measures ensuring that it is not stolen. The user also has the option of saving it in an offline tool like USB.
Well, these are the things I understood, hope it is informative for you all too. If you can add some point to this post, will be most grateful.
As usual, Namaste, Au Revoir, Sayonara and a simple Vanakkam to my readers out there where ever you are.