Basic Cryptocurrency Understanding...#001
Good day to my fellow tfc's it's indeed a wonderful day and like always I will like to bring you an interesting topic.
Today I will like to be writing on something very important, a rather broad and continuous topic which is kind of a tutorial lesson on understanding cryptocurrencies.
To understand cryptocurrencies they are so many facets will all need to grasp first and today I will like us to talk about, what currency is and what is cryptocurrencies
What's Currency
When we talk about currency what we mean is actually anything that is accepted as a means of exchange in various countries of the world.
Currency is what we use as a medium of exchange it gives those in possession of it purchasing power, ability to buy goods and services.
Many countries of the world today have something they use as a legal tender, in united states for example they use the united state dollar(Usd) and in European countries they use Euro and in my country we use naira.
So the currency of a country depends on the country you are and what they accept as a legal means of payment.
Currencies are very important as currencies no only help a country locally but aids it in her international trades with different countries of the world I mean it facilitate economic activities between one country and the other.
Ofcourse knowledge of currency is essential for a better understanding of cryptocurrencies that's why I explained it here, now we have gained understanding of what currency is, the question now is what is cryptocurrencies?
What's Cryptocurrency
Now we had understand currency, cryptocurrencies is very similar to the traditional currency yet different in many ways.
Currency often is physical hard paper while cryptocurrencies are digital form of money, they are digital or virtual decentralized form of currencies that runs strictly not on any traditional financial statement which is centralized but on a decentralized hardcore blockchain technology.
Our normal currency or rather fiat currencies are kind of owned and controlled by the government making it fully centralized form of money and it's physical while cryptocurrencies are decentralized, it is not controlled by an individual and operate in the strongest technology ever that is blockchain network.
Just like fiat currency, cryptocurrencies can also be used as a means of payment and as an exchange medium for goods and services but offers much more services where fiat currencies fails.
Cryptocurrencies can be used to for online transaction and even in-game payment and because of the technology it operates on it makes it much more secure and reliable.
The only thing is the price of cryptocurrencies tend to be very volatile compared to fiat currencies little wonder it has distrust among many government especially knowing that they can't control it though it's accepted as a means of payment in some countries while some other countries shun it's use.
Cryptocurrencies have become where many run to looking for financial freedom from the shackles of the traditional financial systems often with their restrictions.
Some examples of cryptocurrencies are; bitcoin, ethereum, BNB, Steem, Trons, Solana etc.
Some government who distrust cryptocurrencies this made them bring out the idea of CBDC which is regulated and controlled by them.
On my next post on this topic I will deliberate more on what cbdc is and other interesting features.
Conclusion
Ofcourse cryptocurrencies are created to offer an alternative to making payments but many have fallen in love with it and would rather use it as a means of payment or form of currency and this hasn't exactly gone down well with government of some countries.
Ofcourse it remains to be seen if cryptocurrencies could eventually gain mass adoption world over and win over friends and doe alike.
https://twitter.com/frank_anayo/status/1716425689077875152?t=HlDBmVFQQ1i2VGwFwssPLQ&s=19